FEW Spirits: Contradictions Result in Excellence

A craft distillery seems to be getting it right despite the odds

FEWSpirits_logo_bwFew Spirits, run by Paul Hletko in the Chicago suburb of Evanston, is based on a number of inconsistencies. He built a distillery in a town where prohibition ended in 1972 (40 years late) and where there is not a single bar, to this day. Further, Evanston was the home of the Women’s Christian Temperance Union, one of the driving forces behind the “noble experiment.”

Oddly enough, the co-founder and longtime leader of the WCTU was Frances Elizabeth Willard, whose initial are – F.E.W.

I asked Paul if he named the distillery and brands after her. His response was no. He named it Few as in selective, as in small, as in a few products. Whatever the reason, he makes outstanding spirits.

An interesting entrepreneur

Paul Hletko of Few Spirits
Paul Hletko of Few Spirits

“All my life, I’ve tried to be a creative person.”

Before I tell you about the products, let’s spend a minute on Paul Hletko, who is not your typical startup distiller.

He has an engineering degree from Michigan and is also an attorney. Prior to founding Few, Paul had a career in music with a rock and roll band, a record label and a company focused on designing and building custom guitar effects pedals. None of it worked out.

That led his creative efforts to follow in the footsteps of his grandfather who owned a brewery in Europe before World War II. But, instead of beer, he decided to become a distiller who produces true farm-to-bottle products.

While many so-called craft distillers source their alcohol from industrial distilleries, Few is all about local ingredients – all grain used in his products (corn, wheat, rye and barley) comes from within a 100 miles (often closer) from his distillery.

The products

FEW Rye Whiskey
FEW Rye Whiskey

In whiskies, Few produces a bourbon, a rye (outstanding) and a single malt whisky. All are exceptional products.

Recipe: Few Barrel Gin, Vermouth, Bitters
The Ginhattan recipe: Few Barrel Gin, Vermouth, Bitters

 

But, get this … Few makes three different style gins including Few American Gin, essentially an American genever with 11 botanicals; Few Barrel Gin, a gin aged in new and used bourbon and rye barrels; and, Few Standard Issue Gin, a gin that harkens back to traditional British navy gin at 114-proof. (See the recipe for a Ginhattan.)

I’ve sampled them all and, folks, this is what craft distillation is all about.

The Challenges

Aside from production issues, independent craft distillers face three tough hurdles – marketing, distribution and financial resources. Few Spirits seems to be handling them well.

Take marketing for example. In my experience, spirits startup entrepreneurs tend to be so in love with the chemistry, alchemy, their skills and recipes that they often neglect to focus on marketing and sales. I’ve written about some exceptions (Jackie Summers and Sorel Liqueur, Alison Patel and Brenne Whisky), so add Paul Hletko to the group. From concept to packaging to promotion, PR, social media, etc. – Paul knows what he’s doing. In fact, Paul travels all over the country promoting his products at tastings and at meet and greets. I met him in NYC last week at Whiskey Park.

Distribution is another obstacle. The large mainstream wholesalers will either not want to talk to you, try to become your partner, expect you

Paul Hletko and Ian Goddard of Blueprint Spirits at Whiskey Park
Paul Hletko and Ian Goddard of Blueprint Spirits at Whiskey Park

to buy your way in or, worst of all, take you in and let your brand gather dust. So, Paul has put together a “hodge-podge” distribution network that includes Blueprint Brands, a division of Great Brewers, craft beer distributors. From what I can tell, his potpourri of wholesalers seems to be working out.

As for financial resources, well, that’s none of my business. But from the look and feel of Few Spirits and it’s approach to brand building, I’d say they’re here for the long run.

Maybe he’ll change the name from Few to Many.

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Altaneve Prosecco

A distinctive product deals with marketing challenges

Sparkling Wine in the US has grown twice as fast as the overall wine category over the past five years. Within sparkling wine, the non-champagne segment accounts for over 90% of sales (See earlier post on Booze Business) with prosecco leading the charge.

In fact, in a recent article in Shanken News Daily:

“The Prosecco DOC Consortium recorded a 34% increase in exports to the U.S. market in the first half of 2014, with volume reaching 1.27 million cases.” 

In effect, prosecco has challenged champagne for the top of the sparkling wine domain. In so doing, prosecco has changed the occasions for drinking sparkling wine. While champagne is for celebrations and special occasions, prosecco is for everyday and any time. Further, at $12 to $15 per bottle, prosecco has an advantage for everyday use.

But, just as there are $12 bottles of wine as wells as $20, $30 even $40 still wines, can an upmarket prosecco capture a significant share of that market?

Enter David Noto with Altaneve Prosecco

David Noto
David Noto

It’s quite an interesting story. David’s family has been making wine for 10 generations in Italy and he grew up with a passion for prosecco, particularly the high quality end. So he changed his career from engineering and finance technology and brought this product to market a few years ago.

According to David, “The US market is not deeply familiar with the broad range of prosecco, so we felt it was time to introduce the best.”

In addition, the brand has an interesting story to tell. Altaneve means high snow in Italian and is a reference to the snow capped peaks of the Dolomite Mountains that can be seen from the vineyards in Valdobbiadene where the prosecco is produced. The production facility is the second oldest in the town where the production of prosecco dates back to 200 BC.

In short, Altaneve has it all, provenance, terroir, heritage and high quality. Taste? I’m a huge prosecco fan and, while I’m far from a connoisseur, I think it’s the best tasting prosecco I’ve ever had. It’s versatile (any occasion with or without food), and unlike other

Presecco production area
Presecco production area

prosecco I’ve had, it’s consistent from bottle to bottle.

Altaneve sells for roughly $29.99 a bottle and therein is the problem.

The marketing challenge

I suppose it’s because the prosecco category in the US market is still in its infancy. Or, maybe the current image for the category is that it is generally low in price. As a result, David faces an uphill battle getting the message across that high end prosecco is worth the price. After all, all wine categories segment by price, why not this one?

I can understand the consumer reluctance to trade up. The category is still evolving and they came to it originally for an inexpensive alternative to champagne, so why pay for top shelf. That perception will change gradually over time but for producers like David Noto, accelerating a change in perception will take marketing muscle and lots of money. Altaneve is a startup brand.

The hesitation by the trade (especially bars and restaurants) is baffling to me. The mark up and profitability from Altaneve would make the brand more than worthwhile. Yet, the reluctance to change, to accept a segmentation of the prosecco category, not to mention lack of knowledge, all make it an uphill battle. To me, it defies logic.

Bottle_5I guess the bright side is twofold. First, slowly but surely, better retailers like Sherry Lehmann and important chains like Capital Grille are stocking Altaneve. Then there is David Noto himself. If you’re a follower of this blog, you know I often write about startups and the entrepreneurs behind them. Add David Noto to the list of passionate, smart and committed.

As to the Altaneve product itself, try it and let me know what you think. Unfortunately, it currently is only available in NY, NJ and CT, but also online. I’m betting you’re going to love it.

While you’re at it, check out what Wine Spectator had to say about Altaneve, as well as other info from their Facebook page.

Altaneve products
Altaneve products
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The Columbian Exchange – Ever Heard of it?

One of the most important events in history

The Columbian Exchange (sometimes called the Grand Exchange) was the exchange of goods and ideas from Europe, Africa, and Asia with goods and ideas from the Americas. An historian named Alfred Crosby was said to have coined the phrase in 1972, describing the exchange of crops and livestock between the New World and the Old World.

From the Savory Spice Shop blog.
From the Savory Spice Shop blog.

For example, the New World received such staples of our diet as citrus, apples, bananas, onions, coffee, wheat and rice. In exchange, the Old World received such plants as maize, tomato, vanilla, cacao and potato.

In terms of influence consider this:

Before Columbus discovered the Americas, there were no potatoes in Ireland. By the 1840s, the Irish Potato Famine caused deaths and massive emigration. Tomatoes came to Spain from the New World and from there to Italy and forever changed the culinary style of the country.

More than just food

So far as livestock is concerned, most of the exchange went from the Old World to the New World, including horses, pigs, cattle, chickens, large dogs and cats. Not many animals went the other way, with the notable exception of the turkey. Oh, and let’s not forget that when it comes to diseases, the Old World sent far more than it received – from measles to malaria.

What does this have to do with booze?

Ah, glad you asked.

A few weeks ago, a reader of this blog named Desmond Nazareth, who lives in India, contacted me to tell me about his company – Agave India Industries Ltd. Turns out that Mr. Nazareth is an entrepreneur, a graduate from the prestigious Indian Institute of Technology, Madras and is producing authentic artisanal spirit made from Agave Americana. If you look at the list of New World to Old World exchanges, the agave plant is right up there.

Desmond Nazareth and an Indian Agave plant.
Desmond Nazareth and an Indian Agave plant.

He can’t call it tequila or even mescal due to appellation requirements but if it looks like a duck, walks like a duck, swims like a duck – you get the idea – it must be a duck.

Mr. Nazareth is arranging for me to see and taste his product and I’ll get back to you. I’ll also tell you how the agave plant got to India and about his extraordinary spirits enterprise.

So stay tuned.

 

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