Location OR/NC

[golden]

Hello fellow distillers,

For the past few months I have been drawing up business plans and have been searching around for some information that I think may be better answered from a personal prospective. As a quick background, I am running an import tequila/gin and vodka distillery. My plan runs on the idea that I probably won't be able to finance much more than a tasting room, and wont be able to rely heavily on foot traffic. Due to a myriad of reasons, my plan to set-up shop has been nailed down to two very different areas, Salem/Corvallis region of Oregon or Wilmington/New Hanover region of North Carolina.

I have been reading around about North Carolina's state run liquor stores and have read a few posts indicating the challenge of starting in a state-controlled distribution state. On the positive side, I know that the craft distillery market in NC is nowhere near as saturated as Oregon. In Oregon, I see the opposite problem of having relatively easier distribution but there are many more craft distilleries. 

Any personal advice from either coast would be much appreciated as I haven't put roots down in either place. 

[JustAndy]

As an Oregon distiller, I would say you don't really have a much of a chance at this stage in the game with distilling a vodka. If you are interested in importing tequila & gin, find an existing distillery and partner with them to import & bottle it for you. 

[Lassiter Distilling Co]

The state of North Carolina has been accommodating to us, even with regard to the ABC. Municipality has been as well, but county has been challenging (though manageable). 

I can cannot speak for Wilmington/New Hanover County from experience, but thy did get some press lately about a distillery that tried unsuccessfully to get some zoning code revisions that would allow them to operate in more favorable districts. I have no idea how that all turned out for them, but I'm not sure they have opened or not. If you choose Wilmington, I'd suggest a sit down with all of the city staff to make sure your desired plans align with their vision for the city. 

[golden]

Hmm, interesting information. In response to JustAndy, the import side of things would solely be tequila, with gin being the focus and vodka being a more supplemental product for the distillery. I'm not particularly interested in making a dent in the vodka "game". In response to Lassiter, what I'm concerned with is the length of time between getting approved for operations and achieving actual sales. I haven't really looked in depth at the regulations and don't understand the main concept of how distribution works in NC, but in a general sense it seems more difficult than states that allow direct sales and distribution. 

[Lassiter Distilling Co]

I'd suggest a call to the NC ABC for clarification on how distribution works. It's fairly simple in that the state warehouse essentially replaces the distributor in NC. In order to have product in the state warehouse, you have to get your product listed in NC, which requires a meeting with an official from The ABC. for in state producers, it's not as difficult to get listed in NC. I'd say it will take approximately 2-3 weeks longer than an open state operation to get up and running with sales due to the listing process with the state. If you keep them involved and talk to them frequently, it should go smoothly. 

Now on the sales side, you have to approach it in a control state the same way as you would with a huge distributor. They may carry your product, but you're going to have to market it to generate sales. NC has thousands of products, and the state will de list yours if you don't make enough sales. So either hire a decent broker representative or be ready to hit the pavement to market to bars and restaurants and the county boards. 

[golden]

Good stuff.

Interestingly, an article was posted 6 days ago about Wilmington and distilleries and it looks like a distillery called High Tide applied for a change in zoning and it was accepted. http://portcitydaily.com/2015/07/06/new-legislation-city-ordinance-aim-to-jump-start-craft-distillery-businesses-in-wilmington/. Looks like they are planning to do something similar to what I had in mind (Vodka, Gin, Bourbon, Rum vs Vodka, Tequila, Gin). Downtown Wilmington isn't very big so our business would be in pretty direct competition. They also have a pretty good head start as I won't even begin the zoning/application/permit process till next year and from the looks of it they have been going at Wilmington for a couple years. 

Thanks for the summary of the NC ABC process. I think I get the concept and will review the specifics.

I think one of the stronger parts of my business plan is the marketing/advertising section as this is my forte, and I'll be looking for a partner for the finance side of things. 

[FaintingGoatSpirits]

Golden,

 

We are in Greensboro NC. There are advantages and disadvantages with being in a control state. NC has been really supportive, just know that the tasting room will not bring as much revenue in NC as it will or Oregon. We can only sell 1 bottle, per person, per year right now, and cannot serve mixed drinks. So, just keep that in mind if you are planning on focusing on a tasting room revenue.

[golden]

Thanks Goat!

I figured that direct sales aren't a great option in NC. I emailed the planning depart. in Wilmington to see if a bar/restaurant attached could serve mixed/single drinks as long as it is clearly separated from the distillery. Im looking at some undeveloped land that I could build pretty much from the ground up. 

[FaintingGoatSpirits]

Yeah, you can do that. There just has to be a wall between the two, and some finagling with the separate permits I believe. Great Wagon Road out of Charlotte does that, and the bar attached to them, the Broken Spoke, does really well. If you talk to Ollie about it, I am sure he could help you out with that part.