Article on the direction Vodka is heading (Spoiler alert: Our way!)

http://online.wsj.com/news/articles/SB10001424052702304815004579417203778518742

YOU KNOW THE standard definition of vodka: colorless, odorless, tasteless. But a few producers are rethinking what this spirit can be—and we're not talking about fruit-flavored bottles, either.

Up to now, priority has been placed on neutrality. "In whiskey, we preserve character," said Tad Dorda, CEO of the Poland-based Chopin brand. "In vodka, we lose it." To show how expressive vodka can be, Mr. Dorda created his Single series. Each of the four single-ingredient vodkas—potato, "young potato" (made with early-harvested potatoes), rye, wheat—is filtered just once. The results are startling: The potato vodkas are redolent of dark chocolate; the wheat is downright earthy. The standard Chopin vodkas—filtered four times—merely whisper where the Singles shout.

Swedish producer Karlsson's has released two limited-edition vodkas in its Batch series, each labeled with a vintage to showcase the character of a single potato harvest. Also filtered once, these are distinctly sweet, with a hearty mouthfeel. Collectors may want to procure a bottle just to see how extreme a vodka can be, while the easier-to-obtain Karlsson's Gold retains some of the same richness and singularity, taken down just a notch.

AO Vodka, new to the U.S., is a Japanese rice vodka with a fleeting, rounded sweetness. Napa Vodka, made from Sauvignon Blanc grapes, is reminiscent of an eau-de-vie, right down to the fruity scent. From New York's Hudson Valley, COMB Vodka is a honey-based spirit with lush apple tones. Distilled father north, from milk sugar, Vermont White is a rich, sweet vodka made for a White Russian.

"There's been great evolution in beer and single-malt whiskeys," said Christian Gylche, president of Karlsson's. "The range of ingredients used, the geographic locations where they are made—now they are talked about." So it's going with vodka. On the horizon: barrel aging. Oak-aged Absolut Amber is already sold at duty-free stores; Karlsson's has one in the works. Since wood adds flavor, color and aroma, can we call these vodkas? These industry innovators are willing to test the limits.

1. Napa Vodka Vintage Reserve, 40% ABV, $70 | Made from single-estate Napa Valley Sauvignon Blanc grapes, it's reminiscent of a fruity eau-de-vie, but with a crisp finish. Serve chilled, with aged cheeses.

2. Hophead Hop Vodka, 45% ABV, $30 | A beer-lover's vodka, distilled with hops. Super-fragrant, with grapefruit, grassy and floral flavors. As close to gin as vodka can get without going over the line.

3. AO Vodka, 40% ABV, $50 | This clean, lightly sweet vodka from Japan's Suntory is distilled from rice. The exquisitely silky texture makes it a standout. Serve in a martini glass with a splash of dry vermouth and a ribbon of fresh cucumber.

4. Chopin Single Young Potato Vodka, 40% ABV, $50 | If you're going to try just one of Chopin's four Single selections, make it this one. The mild aroma hints at dark chocolate; on the palate it's buttery, with ginger and black pepper notes.

5. Karlsson's Gold Vodka, 40% ABV, $33 | Made from Swedish potatoes, distilled only once and rebelliously unfiltered, this is an earthy, downright savory vodka. The flavor evokes truffles sprinkled with black pepper. A top pick for Bloody Marys.

A great resource!

So, as I mentioned, we've been very busy lately.  One of the things we've done is meet with Rob Unger of Judelson, Giordano and Siegel.  He's an accountant that came highly recommended by another small vodka brand.

His firm was one of the sponsors of NY's Wine, Beer and Spirits Summit I attended last fall.  They do a lot of work with distributors, and also represent other brands.  Rob was lovely to meet in person and has already given us great advice, as well as some contacts in the industry.  He'll be preparing our tax returns and the K-1's for investors who came on in 2013.

A refinement on the business model? Two Gingers

Story in Forbes here

And link to Chicago Tribune story here

The bottom line:  Beam bought this brand, started by one man, when it was only available in one state:  Minnesota.  This is a departure from the usual trajectory, of a conglomerate waiting until the new brand is selling regionally, and in the tens of thousands of cases a year before buying it.

For an Irishman, Kieran Folliard figured out the American dream quickly. Invent a product. Market it well. Become a wild success. Get bought out by a conglomerate for an untold fortune. Travel the country for weeks at a time promoting said product in an Airstream.

That has been Folliard's unlikely trajectory during the last two years with 2 Gingers Irish whiskey. The inspiration, Folliard said, was pouring phenomenal amounts of Jameson Irish whiskey at the bars he owned in Minneapolis.

Yet, he wondered if he could do it better. Folliard began contracting with a distillery in central Ireland in pursuit of the smoothest, most mainstream Irish whiskey it could manage.

"Nonsnobby was my approach," Folliard said.

2 Gingers quickly became a Minnesota sensation, mostly because of a cocktail that Folliard trademarked called the Big Ginger, which is composed of 2 ounces of 2 Gingers topped with ginger ale and fresh squeezes of lemon and lime. If such a cocktail sounds like a betrayal of all things whiskey, well, neither 2 Gingers nor the Big Ginger is intended for you.

Folliard is candid about the fact that his whiskey is meant to appeal to both men and women (as opposed to the usual whiskey target: men) who prefer vodka and beer to whiskey. Hence, 2 Gingers is as easy to drink and burn-free as whiskey gets — especially when topped with ginger ale and citrus.

"We're never going to win over the aficionados, and I'm not sore about that, honestly," Folliard said. "The focus is absolutely on converting nonwhiskey drinkers, both male and female."

That plan appealed to Beam Inc., the suburban Chicago spirits giant behind dozens of brands that include respected whiskeys such as Maker's Mark, Basil Hayden's and Booker's. It bought 2 Gingers in late 2012 and kept Folliard as its face. Beam is expanding 2 Gingers' availability to all 50 states.

"An interesting piece to us … is that through the brand of 2 Gingers, he was able to convert people," said Chris Bauder, Beam's vice president and general manager of whiskey and cognac. "It seemed different than what was on the market."

Indeed, 2 Gingers threads a unique needle: It provides Beam an opportunity to compete with Jameson with an accessible Irish whiskey while appealing to people who don't even like whiskey much.

And for that reason, 2 Gingers deserves credit; it provides a little heat on the tongue with hints of oak and citrus before reaching an impressively smooth finish.

But from a straight whiskey drinking perspective, the flavor peters out without ever quite becoming interesting. At $20 per bottle, it's tough to recommend, especially when very good bourbons can be had for only slightly more money

Then again, I'm not the intended audience. And that's just fine with Folliard and Beam.

And a Minneapolis story here

A couple of pieces of advice

I spoke yesterday with another distiller (more on this later).  We had a great, wide-ranging talk, but two things he said stand out.  One, he agreed our budget was right on target for a new brand.  And two, he said you really can't go "belly up" in this business.  That's because you always have goods (vodka) to sell, so worst case scenario, you'll get your money back.  He also agreed that word of mouth was the best way to launch (OK, so three things stood out).  If you spend a ton of money of advertising, you could lose that, but it is not necessary at the start.

A snowy sunset over one of our meadows

photo courtesy of Sarah Tompkins

We've hired a designer

We went through quite a process, interviewing local designers, internationally famous design firms, a firm who's business is creating and designing new alcohol brands and packaging . . . and after great deliberation decided to go with Alexander Isley and his team.

The Isley Manifesto

If you read even a third of the way down, you will not be surprised to learn that he was the art director for the late lamented  Spy Magazine.  He is the funniest person we've met in this vodka journey.

So he is really impressive and has a really impressive client list

But we are taking a little risk.  We know he and his team are amazing designers, but they haven't done a vodka brand before.  We think this will pay off, as we want to think outside the box, be different than every other vodka brand out there.  

We'll be getting started on the design in about a month's time -- we have to finalize the wording on the label first, and that's a matter for the TTB.

Basic Permit

So . . . we've filed for another one of our required permits, called the Basic Permit.  The TTB (Bureau of Alcohol, Tobacco and Firearms) has an online filing system.  It sounds like nothing, but actually has taken a few hours to organize.                                                                                                              

Tree on the farm

Accountant

There is so much going on, which is paradoxically why the blog has been quiet.  We've been busy following up with potential investors, winnowing our designer choices, finding a label printer, identifying a company with back office capabilities, and contacting an accountant who specializes in the liquor industry.  Whew!  None of what we are doing is final yet -- we haven't hired anyone -- but these are some things in the works.  More later!