New law expands liquor tasting
Published 5:00 am Friday, June 7, 2013
Central Oregon distillers gave mixed reactions to a new law that will allow them to sell and offer samples of their spirits at more locations throughout the state.
The law, passed by the Legislature and signed by the governor last month, increases the number of locations where a distiller may hold tastings and sell bottles from two to six. Distillers must also get approval from the Oregon Liquor Control Commission. The law takes effect Jan. 1.
“I think this has the potential to help us and the whole industry out,” said Alan Dietrich, CEO of Bendistillery Inc, which has been in operation since 1996.
Increasing the number of locations for tastings is an example of changes the state has made in recent years to support the budding industry of craft distilling and create rules for distilleries similar to those governing wineries and breweries, he said.
In the past five years, Dietrich said, changes in the lawhave allowed distillers to sell bottles directly to consumers at festivals, and offer tastings without being required to have a restaurant, which cuts overhead costs.
“The state has really recognized the value of supporting and promoting this business as both an export product to other states and as a culinary tourism offering,” he said.
Bendistillery, located in Tumalo, has considered opening tasting rooms in other parts of the state as part of its long-term plans, Dietrich said, and the new law gives him more incentive to do so.
Brad Irwin, owner and distiller at Oregon Spirit Distillers, said he doesn’t think the law will impact his distillery or others of a similar size because of the high cost to open and operate tasting rooms.
“The value we get from tasting rooms aren’t in dollar sales,” he said. “It’s more in marketing. (Tasting rooms) get product out there and develop enthusiasm for how we make it.”
Financially, he said, it doesn’t pencil out for him to have more than the one tasting room at his Bend distillery. And, he said, he’d rather focus on manufacturing the product instead of selling it.
“I would never want to have six outlets because I don’t want to compete with the liquor stores,” he said. “I work in partnership with the liquor stores … I want to produce it on the wholesale level and let the retail side worry about sales.”
Ross Wordhouse, co-owner of Cascade Alchemy, a new distillery in Bend, agreed.
“It doesn’t help the little guy, but for the big distillers, it’s a great opportunity,” he said, referring to the new law.
Wordhouse, who just upgraded from a 26-gallon to a 100-gallon-pot still to increase production of his peated-malt whiskey, hopes to have his spirits on liquor store shelves in Oregon within four months.
While the new state law could benefit him in the future as the distillery grows, he said, a proposed federal law, the Distillery Excise Tax Reform Act, reintroduced in April, would significantly cut his costs. The legislation would reduce federal excise taxes for small distillers.
Wordhouse said it would bring the tax on spirits more in line with beer and wine.
“Addressing the differences … would greatly help the small craft distiller,” he said.