Distillery offers spirited business plan By KATHY KAHN

Distillery offers spirited business plan
By KATHY KAHN

For a true Hudson Valley tipple, Gardiner’s Tuthilltown Spirits’ Hudson Baby Bourbon may be just the answer for that perfect Manhattan cocktail even if you sip it in Mamakating or Mamaroneck. If, like James Bond, your tastes run to martinis, Tuthilltown offers its own vodka to be shaken, not stirred.

“Made in the Hudson Valley” a la for Gardiner’s Tuthilltown Spirits involves opening the state’s only distillery, using local apples, pears and corn to make libations and getting folks to start humming, “Little Brown Jug.” For owners Ralph Erenzo and Brian Lee, it’s a recipe for success.

Erenzo, a rock climber by desire and a distiller by drive and determination, met a perfect partner in Suffern electrical engineer Lee when faced with a dilemma: what to do with the property he purchased in Ulster County. In 2000, Erenzo had purchased a slice of heaven in Gardiner, hoping to create a haven for climbers who swarm the Shawangunk mountain range. Faced with insurmountable challenges from officials for his venture, Erenzo and Lee cooked up a unique use for the historic farmhouse and 200-year-old gristmill on the property. Tuthilltown Spirits was born out of a desire to make both a sustainable living and lasting mark in the Hudson Valley.

As the “spirit” moves them, they produce fruit vodkas, whiskey and bourbon from fruit and corn purchased from local farmers. And as the entrepreneurial spirit moves them, they are always looking to create the next great taste.

Erenzo, who once climbed in Europe searching for the perfect peak, returned to the continent to visit distilleries, wineries and other “hair of the dog” producers to learn all he could about the art. Lee, with an extensive background in technical engineering, is the wizard behind the heat, electricity, steam and other components that go into building and maintaining the still and the barn that houses it.

They started marketing their product in earnest in March 2006, with Erenzo loading up his car and hawking their homemade hooch to liquor stores from Gardiner to lower Manhattan. “We have been fortunate,” said Erenzo. “We have finally found a distributor willing to take on a ‘small operation’ that’s us.” That leaves Erenzo with more time to market and work on new products.

Demand has been great, the pair says. In 2006, their first year, they sold $140,000 worth of their whiskey and vodkas. In the first four months of 2007, they’ve already predicting to double last year’s production and are getting ready to add a second still to their operation, enabling them to meet demand. “We can’t keep up with the pace,” said Erenzo. “No sooner do we seal the cases, than they are out the door.”

Erenzo and Lee are working with ancient varieties of corn, “the kind that haven’t had the flavor bred out of them,” said Erenzo. “Like the Rembrandt tulip that once sold for $2,000, more valuable than gold, so are the ancient varieties of corn. We are using corn that dates back to Native American times that is specially produced for our operation.”

While visiting the distillery and taking in the breathtaking beauty of the Shawangunks, there’s no tasting or selling allowed at Tuthilltown Spirits. That’s something the owners are lobbying to change, with the help of state Sens. William Larkin and John Bonacic. Two bills S2019 and S2020 are in the Senate right now. If passed, they will allow people to taste samples, buy directly from the manufacturer and help Tuthilltown Spirits become a destination in the Hudson Valley, just like their brothers in “spirit” winemakers.

Gardiner and the surrounding towns and villages have benefited from Tuthilltown Spirits’ existence. “People come here to see the distillery, then they’ll go into town, purchase a bottle, maybe eat at a local restaurant and spend the evening at one of our bed and breakfasts,” said Erenzo. “We are supporting our local agricultural community by purchasing local products. Stone Ridge Farm, right down the road, is one of the suppliers of the apples we use in our vodkas. We also buy all our corn locally and all our products come from growers right here in the Hudson Valley, either in Warwick or Valatie or other sections.”

Erenzo says allowing distillers to operate and work with farmers will not only help the agricultural business stay afloat but will enable farmstands to stay open longer, offering the “fruits of the labor” in liquid form. “The Finger Lakes region has a short growing season,” said Erenzo. “Imagine if they had the capability to market apple or pear vodkas made from fruit grown right on their farm. It would enable them to keep their doors open longer and also help keep them viable. We’d be able to split profits with them. That’s a way to keep our farmers sustainable. They sell 500 gallons of apple cider for $650 … turn that into 55 gallons of apple vodka, and you have $10,000 of retail product available for sale. If we really want to draw tourism and its dollars and keep agriculture alive in New York, we feel this is the way to do it.”

It may not be that easy, however. The two bills that are being presented to the Senate have failed twice, both vetoed by then-Gov. George Pataki. The State Liquor Authority refuses to give its blessing to the venture. But Tuthilltown Spirits’ owners are hoping under the new administration, their quest to sell and market their products in tandem with local growers will become law.

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