Journeyman Distillery opening $40M facility in Valparaiso

[Erik Owens]

https://www.chicagobusiness.com/restaurants/journeyman-distillery-opening-40m-facility-valparaiso

By Ally Marotti

Credit: Courtesy ofJourneyman Distillery
A rendering ofJourneyman Distillery's upcoming facility in Valparaiso.

Journeyman Distillery is expanding beyond its home in Three Oaks, Mich., to open a $40 million facility in
Valparaiso. The new digs will include a distillery, craft brewery, multiple restaurants and event spaces. It is set to start a
phased opening in October. The move will get Journeyman closer to its core clients—Chicagoans—and help grow
its standing among Midwestern distillers.
“We needed to expand our distilling operations,” said Bill Welter, who founded Journeyman with his wife Johanna in
2010. “Craft distilling is at a little bit of an inflection point.”
When Journeyman opened, it was one of about 300 micro distilleries in the country. That number grew to 2,700 by
2020, according to the most recent count from the American Craft Spirits Association. Changing laws and
consumer demand have allowed micro distilleries to open in every state in the country, said Gina Holman, president
of the association.
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Running a micro distillery over the past decade has not been for the faint of heart, and headwinds remain, Holman
said. But the industry is maturing. Consumers are increasingly interested in learning about where and how their
spirits are made. Journeyman is looking to capitalize. It’s also trying to compete with the newcomers.
When a distillery “can really position themselves as that tourism destination spot, that’s what the consumer is
craving,” Holman said.
The Valparaiso distillery is 140,000 square feet, more than triple the size of the original location in Three Oaks. It
will occupy an old factory that was built in the mid-1800s, and originally occupied by the Woolen Mill Company.
Welter loves restoring old manufacturing facilities, and paying homage to their stories. The Valparaiso location will
be called The American Factory. Similarly, the Three Oaks distillery occupies an old featherbone corset and buggy
whip factory. The names of the spirits made there nod to the history, like “Buggy Whip Wheat,” for example.

Like the Three Oaks setup, the Valparaiso distillery will show off the distilling process. Customers like to see it,
Welter said. The event space, restaurants and craft brewery—a new venture for Journeyman—help diversify the company’s
revenue streams amid headwinds such as inflation, which has caused some to cut back on their craft spirit spend,
Welter said. Still, he remains optimistic.
“When times are good, people are celebrating. And when times aren’t as good, people are still resorting to
whiskey,” he said. “It seems to be a timeless industry.”
Welter declined to disclose revenue. Journeyman spirits are distributed in 35 states, and to Europe and Australia.
Its focus is the Midwest, and it has more than 1,000 accounts in Chicago, including restaurants such as the Aviary.
It is also sold in liquor stores and groceries such as Whole Foods and Binny’s.
Journeyman currently has more than 150 employees, and plans to double that in Valparaiso.
The process of opening a second distillery began five years ago, and Journeyman had earmarked about $27 million
for the job. But the pandemic slowed the process, and inflation drove the costs up to $40 million. The funding
came from a mix of sources: $10 million from earnings, a $15 million loan from Wintrust, $13 million from a variety
of grants and tax credits. The final $2 million came from an investment program that allowed 110 people to loan
$15,000 in exchange for a 53-gallon barrel of whiskey and other perks.
Opening a Valparaiso outpost is also a homecoming story. Welter’s grandfather (who shared his name) owned a
bank in the northwest Indiana town, starting in the 1970’s. His father worked there, and so did Welter, until the
family business was sold in 2006. Welter and his three sisters were also born and raised there. Finding finding the
old factory felt like destiny, he said.
“The stars aligned,” Welter said. “And for whatever reason, Bill Welter is going back to Valparaiso.”

[Cosmic.Distiller]

Very cool. From Michigan myself and always enjoyed watching them grow.

[Bolverk]

I went to take a tour about a month ago,  sadly they only did tours on Fridays and i was leaving Indiana on Thursday. I can say the facility was gorgeous! I'm hoping I can manage a tour next time I'm in town.