Since our products are made from Washington produce—our base spirit is distilled from Washington grape wine—and we’ll be producing under 60,000 gallons per year, we’ll have the privilege of selling our spirits on-site (up to 2 liters per person, per day) and offering tastings. According to a new law enacted a couple of years ago in Washington state, the designation for this type of operation is “Craft Distillery.”
However, I have concerns about Washington’s adoption of the term “craft” as a licensing designation for low-volume, local-ingredient distilleries.
While on the outside this measure appears to assure spirits that are handmade by loving artisans from wholesome ingredients, the law actually only stipulates two things: at least 51% of your product must be made from at least 51% Washington produce, and you must make under 60,000 gallons. That’s it. I feel this is grossly short-sighted and it is almost always misrepresented in the media.
Buying local is good for the local economy and we encourage local sourcing whenever possible, but local doesn’t always equal better. For instance, more and more Pacific Northwest distillers—and drinkers—are coming to realize that Northwest juniper isn’t so great for making a proper gin.
My favorite example of the limits of this measure is this: if you just wanted to make rum in Washington, you couldn’t qualify as a craft distillery, no matter how low-tech, hands-on, small-batch and Old World your approach was. That is, unless you made at least as much of some other spirit that was sourced from Washington produce. That’s because we don’t grow sugar cane in Washington, the definitive ingredient in rum.
There are many true craft distilleries in the US who source their ingredients from wherever they might find them most suitable to their use. Regardless of the passion and knowledge and Old World craft that goes into their products, these distilleries couldn’t qualify as “craft” distilleries in Washington state. Many distilleries will thus be unfairly excluded from “craft distillery” privileges—on-site sales and tastings—based solely on their choice of product, no matter how traditional.
The reality is that as soon as there is an ethanol manufacturing plant—anywhere, even in California—making Grain Neutral Spirits (GNS) from Washington produce, it will be possible for an entrepreneur to purchase that GNS, rebottle it at 80 proof, and qualify as a Washington “craft” distillery, selling “craft” vodka that actually cost less to make than the bottle holding it.
When the topic comes to a vote or a bill goes before the legislature, and I assure you it will, I urge you to help us truly level the playing field and allow all Washington distilleries the same privileges that are already enjoyed by every winery and brewery in the state, micro or otherwise: unlimited on-site sales and tastings.
I like the idea of 51%, though I understand how limiting it is. Maybe the answer isn’t a “craft” label, but something like a “Washington” appellation like they do for grapes, and “craft” has a different meaning. That would still allow “craft” rum, but let people know when they are supporting something from WA that is bigger than just the distillers.
I think the most logical solution may be to get rid of the “craft” designation altogether and offer a tax incentive, such as a lower B&O tax, for distillers whose products are made from WA produce.