Applying new technology to an old industry
31st May 2011 · 1 Comment
Spirit of Texas finds more efficient and cost effective methods for establishing a micro distillery.
left to right: Jason Malik, Brad Haden, Shaun Siems
While working in semiconductor high volume manufacturing, Brad Haden, Shaun Siems, and Jason Malik decided to take their manufacturing knowledge and apply it to something for themselves. The result is Spirit of Texas (www.spiritoftx.com), a company based in Pflugerville.
“We figured that we knew how to make some of the most complex devices known to man, so why not apply that knowledge in an industry that’s still using technology from the early 1900s?” Said Brad Haden, President and Head Distiller of Spirit of Texas Distillery.
“We saw many distilleries opening, but they were all making vodka,” said Haden. “We wanted to create some full-flavored selections that set us apart from the rest.”
After almost three years of planning to settle on a formula for their Pecan Street Rum (the first sipping rum featuring pecans) get the necessary permits, and launch into the market, Spirit of Texas found six liquor stores to carry the product, and have steadily grown to over 80 in six months.
“Starting a distillery bootstrap financing is hard work,” notes Haden. “We had to make creative solutions for everything. If we can do the work manually, we do. We started with loans off of our retirement accounts, then we ran out of money and had to get loans from family. We’re just now starting to look for investors–but the good news is that we’re nowhere near the typical startup costs that most distilleries require.”
Haden notes that some customers early on showed them how to market and sell the product through on-location tastings. After some initial success, Spirit of Texas started focusing on the bar scene–but quickly realized that direct sales through tastings was a much bigger growth model. The next step for them is to expand into all the cities in Texas.
Spirit of Texas had $13K in Revenue for 2010 (after launching in October), and they are projecting $130K for 2011. Their next product to hit the shelves will be be Spirit of Texas Rum–a clear rum.
Hello Jason my name is Trey, I live in a small town in Texas called Muleshoe. I have recently read your artical on micro distillery. The one on the spirit of Texas , I have recently had some interest in this area. I am a local farmer and I have made some spirits out of a product that I have grown locally on my farm that I believe has never been done before. I am looking for ways to put this into production do you know of a micro distillery in Texas that might have some interest in talking to me about this. Maybe even one that would produce my product for me? The grain that I a making this out of has never been distiled before to my knowledge . But I have made it work and the taste is very good would you please contact me by email or phone I prefere it be via phone 8064707945
Thank you very much trey