Tuthilltown looks to expansion while maintaining spirit after deal

With William Grant & Sons' acquisition of Tuthilltown Spirits, the Gardiner distillery plans to continue selling a Hudson Valley product while potentially expanding the site and its distribution.

William Grant & Sons, a Scottish distiller, announced the purchase of Tuthillltown Spirits for an unspecified amount Tuesday.

Tuthilltown may serve as one of the mid-Hudson Valley's prominent local distilleries, but it's also a global player in the craft whiskey scene with its flagship Hudson Whiskey. The deal has the potential to bring the local distillery's other spirits to a national and global market.

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As a major contributor to Ulster County agriculture and tourism industries, Tuthilltown may also undergo expansion to its distillery, restaurant and visitor's center in an attempt to bring more tourists to the site.

The relationship between William Grant & Sons and Tuthilltown Spirits goes back to 2010 with the acquisition of Hudson Whiskey, according to Jonathan Yusen, president & managing director, Americas, at William Grant & Sons.

"As the (Tuthilltown Spirits) brand grew, the prospect of a deal became more prevalent," he said.

This latest deal is a "culmination" of that relationship formed seven years ago, said Tuthilltown Spirits co-founder Ralph Erenzo.

"We wanted to put Tuthilltown in the hands of owners who would respect what we've done so far, and William Grant & Sons was the right organization," he said.

William Grant & Sons hopes to "preserve the brand's heritage" following the acquisition, Yusen said. This includes continuing with the distillery's work with local farms.

"Tuthilltown Spirits is still buying 90 percent of its ingredients from its local farmers," Erenzo said, adding that he believes these practices will continue.

Though Tuthilltown is a small distillery, it's footprint in the spirits industry is huge, said John Fischer, professor at The Culinary Institute of America. Erenzo was the central figure involved with the Farm Distillery Act, and Hudson Whiskey predated the trend as a locavore whiskey when the farm-to-table movement was in its infancy.

"There's a demand for their products in the spirits and bartending industry across the world," Fischer said.

While Fischer was surprised at the acquisition, he said Tuthilltown will likely operate as it has before.

"Ralph has a passion for quality and a real drive, so I don't see him rolling over now," he said.

Erenzo will continue working in the same capacity with Tuthilltown Spirits, managing staff, handling regulatory business and "encouraging staff to explore new ideas," he said.

"Ralph's involvement remains critically important in this next phase," Yusen said. "When Ralph tells the story of how Tuthilltown got its start in the mid-Hudson Valley, that's the catalyst that demonstrates what makes it special. Ralph will ensure that what we found special about Tuthilltown Spirits continues."

Though there are no immediate plans for change to the site, Tuthilltown's distilling capacity, restaurant and visitor's center are all areas under consideration for expansion, Yusen said.

These features, as well as the natural scenery, are all draws to attract tourism to the site, Erenzo said.

"For people coming up from the city, we want Tuthilltown to be more than just a whiskey place but instead a scenic location to bring the family," he said.

Tuthilltown Spirits brings about 35,000 people to Gardiner annually, Erenzo said.

And the distiller plays a major role in Ulster County's $500 million agriculture industry and $533 million tourism industry, Ulster County Executive Michael Hein said.

"Tuthilltown has always been hugely supportive of 'buy local' efforts which has been a boon for our farms," he said.

The acquisition of the distillery serves as a sign of its quality and reflects well on the area, Hein said.

"I couldn't be more pleased with their success and growth," he said.

The distillery employs about 35 people, and there are no plans to change staffing numbers, Yusen said.

This deal could also mean a wider distribution of Tuthilltown's other products, Yusen said.

Hudson Whiskey is distributed nationally and internationally including in France, Singapore and Australia.

The distillery's other spirits, such as Half Moon Orchard Gin and Indigenous Apple Vodka, are distributed in New York, New Jersey, Connecticut, Pennsylvania, Texas, Georgia and California. Moving forward, Tuthilltown Spirits will test different markets for the distillery's range of craft spirits.

And locals can still visit Gardiner to get a taste of spirits in development.

"We're continuing to develop our own tasting room where we can measure how well our new products do right in the Hudson Valley," Erenzo said.

Geoffrey Wilson: gwilson@poughkeepsiejournal.com, 845-437-4882, Twitter: Geoff_LW