Issue link: https://digital.copcomm.com/i/807384
56 / the tasting panel / april 2017 Flavor Is in Their Pedigree "We more or less stumbled into becoming a spirits and wine com- pany," says Sharma. "I have a business management background in the tech industry, and our investors were not from the spirits or wine industry. Making and selling alcohol had not originally crossed our minds. But when we looked at the growth within the spirits industry—and how Texas had recently taken off with Texas- made spirits with the likes of Tito's Vodka and Deep Eddy Vodka—we saw a unique opportunity." The company de-emphasized food production and kept some of the more profitable nonalcoholic drinks. Southwest purchased new distilling and new bottling equipment, and took the next step towards transforming the facility for spirits production. "But it's one thing to buy shiny equipment, and it's another thing to know how to use it and use it well," says Sharma. "So we decided to walk into things gently the first year." Southwest gained the trademark licenses for NUE Vodka, a relatively new brand that needed solutions for growth. At the time, NUE was only producing a straight vodka, but already had a decent distribution. Along with the brand's original partners, they thought there was an opportunity to expand NUE Vodka through flavors. "We were operating at a former food plant with an entire staff of flavor experts," says Sharma. "At that time, we may not have known alcohol or the industry very well, but flavor is our pedigree. So we launched a couple of new flavors under the NUE Vodka label. The grapefruit flavor won a Double Gold at the San Francisco World Spirits Competition. Clearly we were doing something right." The company started bridging out to better understand the industry and began working with Prairie Creek Beverages, owned by Mike Howard. Marriage Made in Texas With more than 25 years in brand development and marketing for wine and spirits, Howard had already launched his own consumer brand development company for wine and spirits, Prairie Creek Beverages, in 2013. Within Prairie Creek's first year of business, Howard had developed and launched a handful of wine brands, including Manuscript Cellars and Top Spin Wines. And with the help of Andy Harmon of South Fork Bottling, he launched J. R. Ewing, a bourbon named for the iconic Texas oil tycoon character from the TV show Dallas. Howard's expertise was not only in marketing and sales, but in taking a concept from idea to reality. Plus, he had relationships he had fostered over the years that helped give him access to distribution. What Howard didn't have was an outlet for production. With Prairie Creek, he would help bring a new brand to life, but it always required the integration of a production facility. In February of 2015, Sharma and Howard sat down to negotiate a joint venture. By combining the efforts of the two companies Southwest rev- enue's began to grow in 2016. Before the end of the year, the company attracted a new investor to further enhance their production capabilities. They were able to launch two new concept brands and increase their marketing investments into their exist- ing brands like NUE Vodka. "We have seen a number of companies gather brands together, but we want to be more than that," says Howard. "We see our value in taking a great concept and ushering it through to the market, whether for brands that we own or for our licensed trademark partners. Whatever pieces are missing, we come alongside and fill in those gaps." In short, Southwest Spirits & Wine has the capability to produce and blend spirits, bottle and package, develop brand platforms and execute programs at the trade level. For their partners, they can provide potential introduc- tions for distribution and facilitate with compliance regulations. Navigating the complex system of federal and state regulations can be a barrier to entry for many small producers—Southwest Spirits can help solve those issues. It Takes the Village Just as important as the capabilities of the facility is the necessity for a well-appointed team who can execute the company's long-term vision. Sharma looks to the finely tuned production crew he inherited with the acquisi- tion of the original food plant. Production is led by COO John Fortman, whose expertise in efficiency and problem solving The company purchased a sleek new bottling line in 2013 and has added another since then. Calamity Gin was just released earlier this year.