Hank [BS/MSEE,
MSM $$$, Ph.D. Mgmt] teaches SUSAN SAULNY
wrote an article named "Farmyard Stills Quench a Thirst for Local Spirits" 
11/25/07 which opened my eyes to new opportunity for entrepreneurs 
of all ages and walks of life. And yes, right here in Indiana. For once, the Silicon Valley is not in the lead! Susan states: "On the heels of the microbrewing boom, new microdistilleries are thriving from coast to coast. And some of the latest and quirkiest entrants to the industry are in places like Iowa, Indiana, Illinois, Michigan and Mr. Fox’s barn."
She goes on with the story of Seth Fox, a Kansas rancher down on his luck who became the seventh generation in his family to get into the production of alcohol-based refreshment, although the first to do so legally. "In trying to take advantage of generations of his family’s moonshining expertise, Mr. Fox, for instance, had no business plan, no employees and about $100 in his checking account. Only his timing was rich: the national demand for high-end spirits, especially vodka, has soared over the last several years, along with the general consumer craving for products with local flair."
Now here’s a twist. Click this link for a report on Seth Fox by a couple of students in a multimedia reporting class at University of Kansas William Allen White School of Journalism and Mass Communications. BTW, Seth is selling all he can make $$$$
Closer to home, down the road in a burg named Starlight, Indiana, the Huber brothers have their own micro-distillery up and running. Turns out the Porsche Club of which I was a member in the past used to have an annual Porsche drive-in at the Huber Winery - been there, done that. The Hubers worked hard convincing the Indiana lawmakers that it would be in their best interests to open up antiquated laws and modify them to permit the making of products based on wine ingredients. Thus, The Startlight Distillery is into brandies, pictured at left on the barrel. With neat names like Apple Infusion (Details), Blueberry Port (Details), Peach Nectar (Details), and Raspberry Infusion (Details), they are also selling all they can make.
The lesson for entrepreneurs, aside from eat, drink and make merry, is that there is opportunity in what may be viewed as old-time industries. The two entrepreneurial efforts noted are bringing today’s technology to bear in an industry where secret ingredients and oak barrels have long been a source of competitive advantage. This follows our blog about the Asus Eee PC which apparently has found a lucrative niche in the "portable" market. Sometimes "smokestack" industries have room for agile new players. Works for me. You probably have other examples?Hank
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A little something extra for the tech-types reading this blog: 
Asus has announced the upcoming release of the Eee PC SDK. This will allow for the development on the Eee PC by the OpenSource community making it easy to develop, easy to port and easy to release software for the Eee PC platform. Check back soon at eeepc.asus.com for more information in the upcoming weeks. We are pleased to work with the OpenSource GNU/Linux community to extend the richness of the Eee PC beyond the standard commercial offerings. From here: The door for entrepreneurs is open even wider!
I’m very surprised that there are still opportunities out there where one can go into a very old market and become successful. I guess new opportunities come with new technology.
By now we all know people are into personallizing things. Also people like to make products thay can use in their own home. What if their were a company that allowed its customers to make their own candles by mixing fragrances and dipping the candles themselves. This is typically an old time tradition often done at festivals and what not. If their were professional store that let people customize candles and fragrancesthat, it could potentially draw in grandparents and grand kids. It also might draw in groups of house wives and church goers on weekend afternoons.
I too have been to Starlight, IN to visit the Huber Orchard and Winery a few times as it is in my neck of the woods. It’s beautiful country and I can imagine there is not many other businesses I would enjoy running more than the Huber farm. It’s like farming, but you actually make money. It’s like landscaping, only you’re making YOUR property look beautiful for a living. To take this a step further, I think that not only are these micro-distilleries a good thing to get into, but I think providing the farm experience for a growing population ignorant to the joys of farm life and environment is a great thing to get into. If you’ve a few hundred acres of pretty countryside and plant some apple trees, the profitable opportunities for you in your own paradise are endless.
My parents and I are in a social group that gets together about once a month just to be together as a group of friends and enjoy each other’s company. We do things like spend a weekend at Turkey run and hike, go to Beef & Boards (dinner theater), bowling and pizza, etc. We are always looking for new ideas and a place like Tyler suggested would most likely be on the list of things to do. There is a market there; someone just has to take advantage of it. Maybe one of us?
I am a big fan of Micro-Breweries, and have tried brewing with my family. Being able to distill would be another great opportunity. Just think, a bar could open up and make all of its alcohol in house. That would be a great way to keep prices down, keep a check on quality, and make a name for yourself. I hope that lawmakers loosen the constraints and open up a new market.
It’s is nice to know that anyone can still compete with the big smokestack companies. There is a wine production farm just north of Bloomington called Oliver Winery. Oliver sells there wine nationally and it’s amazing that they base there company in Indiana. They also provide free samples for their consumers. Ultimately, the locally owned winery and distillery adds a personal touch to the product much like an independent pharmacy does as opposed to the chain pharmacies.
Microbrewing is not the only thing that has taken a huge jump lately. I recently read in the Wall Street Journal that tobacco is going to be the new cash crop of 2008. With these two products moving to the high-rise, should entrepreneurs target the people who enjoy a nice brew and a pleasurable smoke? Possibly. The market is there, but so is the competition. But if you don’t want to deal with all that, starting your own microbrewery would make a nice pastime.
I am shocked that such a mature industry as the wine industy still has openings. Some wine producers have had a few hundred years of head start in this industy, but still these small brewers have a shot. Also, name is everything in these old industries. Some wine companies spend alot of time and money to make sure there brand reputation is great. The Geographic reputation of wine is also very important. Places like France, Italy, Romania, and California should find it easier to sell because their locations have a good reputation in the Wine industry. Usually when a small company enters an extremely mature market, it needs a huge competative advantage like a better product, cheaper product, or a new way of distribution. My theory on their competative advantage it that people like to buy local things over foriegn products. Even with that, this is still amazing.
I’m working on a project similar to this for a competition I’m in and so if anyone is interested in developing some products, drop me an email at gupta3[at]purdue.edu and we can discuss some ideas. I’m most interested in developing a product and having someone else produce it, but am open to discussing anything.
Yea I am sort of surprised this industry has not been touched or used previously to this date. Adult beverage sales I am sure are up and rapidly growing. I can not think of any similiar examples of what is viewed as a old market being refocused and finding a totally new niche market off the top of my head, but as a entreprenuer, I am definitely keeping my eyes peeled for another opportunity.
Yes this is an interesting idea but still I dont think that its going to last that long. we have seen the so called “moonshine” business before and it was shut down, the saying goes that history repeats will be true again. There is a place like this in my town that makes its own beer and all. They have for many years but to be truthful I think the phase in which hard liquor will pass an these businneses will fail. I do think though that the need for local brews is neccessary in for that some will survive but many will be run out by the big companies.
It’s good to see someone like Seth Fox get back on his feet with a new entrepreneurial venture; however, I think the appeal of his product might only attract those buyers in Kansas. With a name like Most Wanted Vodka, I can’t see this product becoming popular many other places and replacing the big name brands of Vodka, or the brands that people know and have become accustomed to a certain taste. I personally believe Seth is simply profiting from the citizens of Kansas because they feel a need to try a vodka produced right in their own background. No one in Indiana or California or Florida is going to want to buy some cheap vodka made from a schmo in Kansas, that’s just a fact. Unless, Seth can sell a lot of vodka, at an extremely low price and attract college students, I think his business might fizzle out before too long. Realizing however that old industries can be entered successfully however does produce some excitement and opens more possibilities for future start-ups. The problem lies with the fact that those old-industries also have long-established, well-known manufacturers making it hard to capture any significant market share or niche. Unless, the product infuses a great deal of new excitement in the industry or has completely unmatched characteristics, the idea that a new start-up will survive in a world of entrinched, long-standing companies is many times unrealistic.
I would like to add there is another type of wine in Indiana and it’s French Lick Wine. French Lick is were Larry Bird grew up and were a new casino is located. This wine sells really good in my area which is Southern Indiana. I believe wine in a certain area sells really good because most of the people know the area or the people running the winery which means the customers trust the product.
There is always room for improvement. It is naive to believe, that an industry is untouchable or unattainable. Now, granted, some industries are more saturated than others, they are not impossible to enter. If you are able to put a fresh spin on something older, while maintaining its original integrity, you are bound to be successful. Sometimes older industries are better to try to enter, because they are already established in the public’s mind as a service or product they need or want.
Breweries!! Nooo! I have to wait till 21 or pay a ridiculous amount for shipping till I am in this “free” place! Talk about double-standards(alright, don’t lecture me already about politics or drinking problems!)
I personally use the brand name as a guide to taste. Example: Johnny Walker(Scottish Whisky) is a good brand. Hence, its whisky must be damn sweeet! But if I come across another brand I would give it a shot(pun intended) and if it is good(consequently, bloody expensive!) I won’t mind being its follower!
What I mean is I don’t care about how long you have been in the industry. As long as the booze tastes good I’m fine!
PS Sorry for the double post
Personally, although not necessarily legally, I LOVE BEER! If I had the opportunity to brew my own beer I would be a happy man and then if I had the opportunity to share and sell my favorite beer that I myself had concocted I would be able to die an even happier man, with money…and that seems to be the whole scheme of things here. Just like Genevieve said it is in fact very naive to believe that any industry is untouchable or unattainable. The industry of making alcoholic beverages is becoming more saturated but micro-brewing is different because it usually takes place in someones garage or barn rather than a massive industrial distillery which means that you might not have as much competition…hmm, this idea is quickly becoming a goal of mine.
and ps…..
long live the BOILERMAKER (that was for you genevieve
)
I think its great that these micro breweries are gaining notice and popularity. Personally, I appreciate any type of product with a little more “flair” and “uniqueness”..and- would most definently make it a point of interest to try this previously mentioned “pumpkin infused” vodka.
I do think it would be a little risky- but..with the whole phenomona of corporate america- and its increasing reputation of absolutely dominating each and every aspect of our lives- people trying to hold on to things with more culture and value.
I think in this aspect- the appeal is that it dosent have absolute market saturation-and that it is all about its regional exclusivity. if i know that i cant get this item at my local grocery store..i am much more inclined to make the purchase at moment.
I live in Gillette ,Wyo and I am very interested in starting my own micro brewery. I have 5 different beers and would like to here some feedback on how to get ou and running.