January 2012, Cover Stories
Rehorst: The Spirits of Milwaukee
Businessman’s dream is now an award-winning reality
A metal monstrosity dominates the north end of the 9,500-square-foot headquarters of The Great Lakes Distillery. With its pipes, valves and what looks like an oversized copper submarine periscope, it could be something out of Jules Verne’s imagination.
It’s actually a hybrid still that creates the many flavorful and aromatic batches of spirits produced by the distillery. In a way, it also is the vessel that holds Guy Rehorst’s dreams.
Rehorst started Great Lakes Distillery in 2004. Previously, he helped found a Milwaukee CD manufacturing company that grew quickly and at one point was listed among the 500 fastest-growing companies in the nation. He sold out his interest to his partner and took a year or so off to think about what he wanted to do.
A home brewer and winemaker, Rehorst, of Mequon, knew there were many craft breweries and wineries, but wondered why there were no craft distilleries.
“I did a little research and found there was a handful on the West Coast that were doing interesting things,” he says. “So I decided to dig deeper into the subject.”
What he found is that distilling is both an art and a science, and that spirits made in small batches can be both flavorful and marketable.
There Was Much to Learn
But distilling is a highly regulated business and he was confronted with the many regulations that affect distribution. He also had to work to change a Wisconsin law that prohibited distillers from offering samples and selling their products on-site.
The work was worth it, he says.
“As with my former business, I had the chance to do something no one else in the area was doing at the time,” he says. “People often are shocked to hear that something like vodka can be made in Milwaukee and that adds to the appeal. It’s both fun and rewarding.”
The first bottles of Rehorst Premium Milwaukee Vodka were ready to be sold in 2006. In 2007, Great Lakes’ first full year of production, the distillery sold about 2,000 cases. Sales have grown to about 7,000 cases a year and the product line now features 11 offerings, including flavored vodka, gin, artisan brandies, whiskey, rum, even absinthe, all made at the company’s location on Milwaukee’s near south side.
Frank Coleman, senior vice president of public affairs for the Distilled Spirits Council of the United States, says that Rehorst was on the forefront of a growing trend. “In the last decade, the number of small-batch distillers has grown from a couple dozen to more than 200,” he says, offering a variety of reasons for the increase in popularity.
“We are in a period in which consumers are gravitating to spirits rather than beer,” he explains. “Brewers have lost several points of market share to spirits.”
Coleman says state laws are changing around the country in a way that helps small distilleries. “We have seen the success of craft brewers and small, regional wineries,” he says. “Craft distilling was the next step, and now laws are in places that allow that.”
Others Followed Rehorst’s Example
While Rehorst is credited with reviving commercial distilling in Wisconsin, more than a half-dozen small-batch distillers have followed; in October, they joined together to created the Wisconsin Distillers Association.
Chris Carlsson, a professional spirits judge, consultant and the writer behind www.spiritsreview.com, says there are other factors contributing to the growth of small-batch distilleries.
“The locavore movement is helping craft distillers, since so many of them pride themselves on using local, fresh ingredients in their products,” says Carlsson.
Indeed, Great Lakes’ Grappa artisan brandy gets its flavor from Maréchal Foch and Léon Millot grapes grown in Wisconsin; its Kirschwasser brandy features the taste of Door County cherries. Its Citrus and Honey Vodka uses real fruit, not industrial flavorings, and the honey is from Wisconsin Natural Acres in Chilton.
Carlsson adds that small-batch distillers are innovators.
“Part of the appeal is that they can experiment and take more risk in what they do,” Carlsson says. “The result is that many of the products are as good — actually even better — than the corporate product.”
Rehorst says the product ideas at Great Lakes are collaborative.
“I will talk about a possibility with Doug MacKenzie, who is our distiller, and he will put it together,” Rehorst says. “Then four or five of us around here will taste it, offer our opinion, and Doug will make changes as needed.
“White spirits [vodka and gin] are not aged, so we can get an idea right away whether we are on the right track. With aged products, we factor in what the aging process will do.”
Coleman cautions, however, that small isn’t necessarily better.
“Not all small products are worthy of accolades,” Coleman says. “But Guy’s are. He has made a real commitment to quality.”
Rehorst is committed to improving distilling in general. He has set up forums to encourage communication within the industry and was appointed to the Craft Distillers Advisory Council of Distilled Spirits Council. He clearly has the respect of his peers.
“We have a great distilling community, and Guy is a big part of that,” says Meg Bell, ambassador for Koval Inc., the only small-batch distiller within Chicago’s city limits. “Most of us have a reputation for doing things that are out of the ordinary, but Guy has a reputation for doing it very well. He’s quite an innovator.”
Products Highly Ranked
For Rehorst, rewards — and awards — just keep coming his way.
Carlsson has rated many of the Great Lakes’ spirits with nines and 10s on a 10-point scale. They have earned Double Gold ratings at the annual San Francisco World Spirits Competition, and a 92 out of 100 ranking by The Tasting Panel magazine.
Rehorst says the ratings and accolades are important and that he uses them in the marketing of Great Lakes’ products.
“The awards confirm that our products are comparable to the best,” he says. “They also give consumers confidence in knowing they are getting a good product.”
Great Lakes’ products range from $27 to $33 per bottle. “That’s comparable to premium-priced spirits, like the Grey Gooses or the Maker’s Marks of the world,” he says.
As for the typical customer, Rehorst says it is not who he originally thought it would be.
“I thought we would appeal to higher-income people almost exclusively,” he says. “But what we have found is that at $30 or so per bottle, quality spirits are a luxury many people can afford. So our customers are people who appreciate what we do with incomes that are across the board.”
Some 90 percent of the Milwaukee distillery’s sales come from Wisconsin, with some products available in Illinois and Minnesota. Great Lakes’ spirits are used in cocktails at bars and restaurants all around the state; they can be purchased by the bottle at most liquor stores.
Expansion Coming Soon
Rehorst just inked an agreement with a new marketing and distribution company that will make Great Lakes Distillery products available in 12 other states. “That means growth for us and expansion,” he says. Plus, some 3,500 square feet of additional space in the same building, which is part of the old tannery complex just south of the 6th Street viaduct, is about to open.
“The new space will give us occupancy of the whole building, which was our goal,” Rehorst says.
It also will help provide a better experience for visitors who come for tours and tastings, which is part of the appeal of a local distillery. “In fact, many small-batch distilleries have become a focal point for tourism,” says Coleman.
Jeannine Sherman, spokeswoman for VISIT Milwaukee, the tourism and convention bureau, says Great Lakes Distillery is an asset to the city.
“It’s always fun to have something unusual to offer visitors to the area,” she says. “It’s a surprise in Milwaukee because people always associate us with brewing. Great Lakes adds a new dimension.”
As visitors increase, sales grow and Great Lakes’ reputation spreads, Rehorst anticipates 2011 will prove to be the distillery’s first profitable year.
“We’ve kept reinvesting to grow the business,” he says. “But we are making progress and I now can have an income. Needless to say, starting a distillery is not a quick way to riches.”
Becoming a huge player in the spirits business has never been one of his goals.
“We want to grow enough to provide us all with decent incomes,” he says, referring to his six full-time and six part-time employees. “We want to keep putting out a great product and if we are too big, we can’t necessarily do that.
“We will just keep going and see where our efforts take us. But we will never be on every bar shelf in the country.”
On The Shelf
Here are the products currently made at Great Lakes Distillery:
• Rehorst Premium Milwaukee Vodka
• Rehorst Citrus & Honey Flavored Vodka
• Rehorst Premium Milwaukee Gin
• Amerique 1912 Absinthe Verte
• Amerique 1912 Absinthe Rouge
• Artisan Series Brandy — Grappa
• Artisan Series Brandy —
Peach Brandy
• Artisan Series Brandy —
Pear Brandy
• Artisan Series Brandy — Kirschwasser (Cherry Brandy)
• Roaring Dan’s Rum
• Kinnickinnic Whiskey
Photography by Shanna Wolf