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"Top of Mind" with Jonathan Robinson, May 16, 2014, Episode 50
>>> This week on "Top of Mind" we're at Dark Horse in Lenexa, Kansas to talk about some
of the unique challenges associated with starting a distillery. I'm Jon Robinson. And this is
"Top of Mind." >>
Today on "Top of Mind" we're on location at Dark Horse Distillery. And I am joined by
Damian Garcia, Co‑Founder and Director of Sales and Marketing. Thanks for having us,
Damian. >> Well thank you for coming out today.
>> Why don't we get started by you talking a little bit about how you co‑founded Dark
Horse Distillery. >> Okay. Well I co‑founded Dark Horse Distillery
with my three other siblings that‑‑ we started back in 2010. It's my brother Patrick,
who's our Master Distiller. My brother Eric, who's our General Manager. And my sister Mary,
who runs our events space here. So we got started back in 2010. And started construction
on the space here, mostly on the production side of things, making sure our equipment
was good to go in here. Started ordering equipment. Started getting all the pipes, drains, everything
done. And roughly about June of 2011 is when we started producing our first batches of
our, what would be now called our Dark Horse Distillery Reserve Bourbon Whiskey and our
Dark Horse Distillery Reunion Rye. >> Uh‑huh.
>> Shortly thereafter we saw how nice the space looked and everything as far as the
production standpoint. And then we ended up putting our event space in and started construction
on that. Started doing all the cosmetic stuff on the other side of where we're sitting in
this room right here. >> So you were open for business as an events
space and a beautiful event space‑‑ >> Uh‑huh.
>> ‑‑ before you were able to pour one glass of product?
>> That's correct, yes. So we started‑‑ kind of later in 2011 is when we hosted our
first, you know, kind of an initial run of a couple of events here.
>> Uh‑huh. >> Just to make sure we worked out all the
kinks and all of that type of stuff. >> Uh‑huh.
>> And yeah. So after that 2012 is when we kind of ran full steam with the events.
>> Sure. >> In that year we also‑‑ it was March
of 2012 is when we launched our Dark Horse Distillery, our Rider ***.
>> Okay. >> And our Long Shot White Whiskey.
>> Uh‑huh. >> So these were actually the first two items
that came out to market. >> Uh‑huh.
>> And then 2013, April of 2013, is when we launched our bourbon and our rye.
>> Great. Talk to me about the kind of the unique experience of co‑founding a company
with three siblings. Is your Monday morning meeting kind of like Thanksgiving dinner where
you're all coming together and squabbling and that kind of thing?
>> No, actually it's not like that at all. >> Yeah.
>> We all get along here. >> Yeah.
>> Everything goes well with us. We all have‑‑ we all have our own roles‑‑
>> Uh‑huh. >> ‑‑ that we play within the company.
And we really come together‑‑ >> Uh‑huh.
>> ‑‑ and kind of talk about what's going on within our own segment of what we're doing.
>> Uh‑huh. >> And everything goes‑‑ everything goes
well. >> Uh‑huh.
>> And that's what‑‑ when we came together to form this company we all knew we had‑‑
>> Uh‑huh. >> ‑‑ set roles.
>> Sure, sure. >> I came from a sales and marketing background.
>> Uh‑huh. >> My brother, Patrick, didn't come from that
sales and marketing background, but he was in financial planning and stuff.
>> Okay. >> But back in the day he worked at a microbrewery.
>> Right. Right. And then took a lot of courses or put himself through some experience to
learn the distilling process. >> Correct.
>> Didn't break ground here never having touched a still before presumably?
>> That's correct. That's correct. I mean, he went‑‑ he toured other craft distilleries.
>> Uh‑huh. >> He did a lot of hands‑on workshops with
a lot of other distillers. And really was the man behind the scenes of what was going
to go on here‑‑ >> Uh‑huh.
>> ‑‑ as far as the production and all the equipment and stuff goes. And then my
brother, Eric, came on. And he's our general manager, of course.
>> Uh‑huh. Uh‑huh. >> And he had‑‑ he was actually‑‑
he's a lawyer. >> Uh‑huh.
>> And he came on to help us. In this business there's a lot of laws and a lot of‑‑
>> Sure. >> ‑‑ a lot of paperwork, mountains of
paperwork. You have to be, everything has to be, you know, legit, taxes, all of that
type stuff. So he was able to help us maneuver a lot through that.
>> Uh‑huh. Uh‑huh. >> And actually coordinate a lot of what was
going on here‑‑ >> Uh‑huh.
>> ‑‑ internally. >> Uh‑huh.
>> My sister, Mary, came on and at that particular time we really weren't sure yet if, you know,
about the event space. >> Uh‑huh.
>> But she came on. And she was going to be kind of, you know, help us, helping us out
here. >> Uh‑huh.
>> And then when the event space idea kind of, that light bulb came off in our head‑‑
>> Yeah, yeah. >> ‑‑ it was a natural fit for her.
>> Great. Great. So you mentioned the importance of having an attorney as one of your co‑founders.
>> Yes. >> And the spirit or the craft distilling,
craft spirits industry‑‑ >> Uh‑huh.
>> ‑‑ is one that is highly regulated. >> Uh‑huh.
>> For good reason. Can you talk a little bit about your early experiences? Every startup
has certain legal hurdles that they need to overcome.
>> Yes. >> They need to become familiar with the regulatory
environment. But I would think that the burdens would be a little bit greater on a new craft
spirits company. So can you talk a little bit about your early experience there?
>> Yes. Yes. And when we first started this, I mean, we had to, we had mountains of paperwork‑‑
>> Uh‑huh. >> ‑‑ that we had to go through. We had
a mountain of documents that we had to fill out. And that's the one thing that he was
able to kind of help us out in doing. >> Uh‑huh.
>> And then also it kind of came up when we started looking at what Kansas state law required
from us. >> Uh‑huh.
>> We had to go through that paperwork again. >> Sure.
>> The first paperwork was all Federal. Second one was all Kansas state. And when we first
started we were a‑‑ I mean, in lack of a better term, we're a manufacturing facility.
>> Sure. >> Okay. So we started as a manufacturing
facility of spirits. >> Uh‑huh.
>> And we wanted to though really bring people to this spot. We wanted to bring people to
this place. But we weren't able to do tastings or samplings within our, within our place
of business here. >> Uh‑huh, uh‑huh.
>> And that was due to the law of Kansas, state law of Kansas. So what we did was back
in 2011 is we started the process of trying to get the law changed within the state of
Kansas to help us be able to do samplings, bring people here.
>> Okay. >> With the craft distilling experience, with
the craft distillery movement, it's all about showing people what you do. Telling people,
you know, sharing in what you do. And showing people the product, the process‑‑
>> Uh‑huh. >> ‑‑ letting people taste your spirits.
>> Uh‑huh. >> And so we started that‑‑ started doing
the‑‑ hired a lobbyist. Started working behind the scenes for the state, within the
state of Kansas. >> Uh‑huh.
>> Going to Topeka‑‑ >> Uh‑huh.
>> ‑‑ frequently. >> Uh‑huh.
>> And we ended up actually getting a micro distillery license that was passed by the
state. >> Uh‑huh
>> And we ended up getting that micro distillery license. And what that micro distillery license
tells us is that anything‑‑ at 100,000 gallons, proof gallons or less, we're considered a
micro distillery. >> Uh‑huh.
>> And with that license we were able to now be able to bring people through here.
>> Uh‑huh. >> Give them samples of our spirits, be able
to do tours. >> Uh‑huh.
>> Having people be able to buy souvenir packages‑‑ >> Uh‑huh.
>> ‑‑ of our spirits when they leave here. >> Uh‑huh.
>> We also had applied for a liquor license for our event space as well. So we also have
that license that we have now as well. >> Okay. Okay.
>> So it's been a‑‑ it's been a long, a long process.
>> Yeah. >> And a long bunch of different hurdles that
we've had to overcome. >> Sure.
>> ‑‑ to get this thing started. >> Uh‑huh.
>> And we just hope that we can continue to help out a lot of those other craft distilleries
that are going to make their way through Kansas‑‑ >> Sure.
>> ‑‑ eventually and stuff, too. >> Can you‑‑ can you talk a little bit
about how craft distilling is both disrupting the spirits industry but also maybe how it's
a reflection of or a driver of change in consumer taste?
>> Uh‑huh. >> I mean, you know, in the popular, popular
notion of spirits is that bourbon comes from Kentucky.
>> Uh‑huh. >> And *** comes from Russia.
>> Uh‑huh. >> And tequila comes from Mexico.
>> Uh‑huh. >> But that's not necessarily now the case.
And why is it important that Kansas City has its own craft distillery?
>> Uh‑huh. And that's, that's the one thing about what craft is.
>> Yeah. >> You have a lot of craft distilleries.
>> Uh‑huh. >> That movement has started within this nation.
And it's just continuing to, more craft distilleries are continuing to open their doors.
>> Uh‑huh. >> And what we do is very different from the
guys that have been in business for years, the bigger companies‑‑
>> Uh‑huh, uh‑huh. >> ‑‑ the bigger brands. We kind of, for
craft distilleries, they try to keep everything as local as possible.
>> Uh‑huh. >> Everything as local as possible. They do
a lot of different things with their spirits. >> Uh‑huh.
>> They do a lot of different mash bills. They can tweak things here and there. The
big guys, the big brands have been around for many years.
>> Yeah. >> Those mash bills have never changed.
>> Yeah. >> And it's really for that consumer to, to
look maybe at something that's a little different from what they've been drinking for‑‑
>> Uh‑huh. >> ‑‑ you know, their whole adult lives.
>> Yeah. >> And it's something what craft is all about.
>> Yeah. >> I mean, when you have something like this
here in Kansas City, or you, you're able to come and see the process, you're able to come
and see what we do. >> Uh‑huh.
>> And that's what a lot of the craft distilleries are doing across the nation.
>> Yeah. >> Bringing people in, showing them their
process. Showing them that, you know, showing them the grain‑‑
>> Uh‑huh. >> ‑‑ everything. And I know you can do
distillery tours‑‑ >> Yeah.
>> ‑‑ in Kentucky and all of those, and some of the bigger, bigger guys. But, you
know, but their process is a lot different from what a small batch distiller's process
is. >> Sure.
>> And this really kind of goes hand‑in‑hand with the craft brewery movement.
>> Uh‑huh. >> Okay.
>> Uh‑huh. >> When you see a pilsner a particular brewery
is doing, micro brewery‑‑ >> Uh‑huh.
>> ‑‑ it's going to be different from the big guys, what their flavor is‑‑
>> Sure. >> ‑‑ from one that's been out there for
many, many years. >> Uh‑huh.
>> So that's kind of like what we do. >> Yeah.
>> It's making that bourbon whiskey different from the guys that are putting it out in Kentucky.
>> Uh‑huh. >> Same thing with the rye whisky as well.
>> Yeah. >> It's making it different from what's been
around for, since, since prohibition. >> Uh‑huh.
>> The ***. And then doing something that's new and unique like the white whiskey.
>> Yeah. Here's to your future success. >> Well thank you very much. Cheers.