Middle West distillery mirrors industry growth
New location used for whiskey, keeping vodka and gin at Courtland operation
Like a tall whiskey highball, Middle West Spirits’ new distillery hovers over its surroundings outside Bexley.
The 75,000-square-foot operation, with its glass-encased tower, can’t be missed by travelers on Interstate 70 or Alum Creek Drive.
For both the company and the Ohio liquor industry, the $38-million distillery represents a huge step up from the kiddie bar. Middle West calls the facility the largest independent distillery in the country and one of the 10 largest distilleries overall in North America.
“We’re growing fast as a company, and as an industry,” said Josh Daily, general manager of Middle West and one of three original employees of the 16-year-old company, which now employs more than 100.
Middle West’s new distillery, which started production in September, is the most dramatic illustration of the liquor industry’s growth in central Ohio and throughout the state.
Ohio has 82 craft distilleries — more than in the bourbon home of Kentucky — according to The American Craft Spirits Association. The Ohio Department of Commerce’s Division of Liquor Control puts the number of distillers slightly lower, at 69. But either way, the number is up significantly from 2018, when 59 distilleries operated in Ohio, or in 2016, when there were 39, according to the Crafts Spirit Association.
Last year, Ohio’s distillers sold 195,601 gallons of liquor, a fraction of the 16.8 million gallons sold in the state, but up 11% from 2022, according to the state.
Driven in large part by interest in craft whiskey among young drinkers, the number of U.S. craft distillers has nearly doubled from 1,439 in 2016 to 2,753 last year, according to the association.
“Middle West has been a shining example of how small independent brands can succeed in a market that is
so heavily dominated by large global players like Jim Beam, Jack Daniels, and the like,” said Alexandra Clough, a spokesperson for the American Crafts Spirit Association.
“The companies poised to thrive are those who have a distinct point of view and a strong sense of place, and of course, offer unparalleled quality. Middle West offers this in spades, and they have generously imparted their wisdom across the craft spirits industry to pave the way for a new wave of independent players.”
The recent leap in the craft distilling industry makes Middle West a relative veteran in the business. Daily said the company was the 56th distiller in the nation when it started in 2008. As he puts it, “we’re one of the old new guys.”
Now, with nearly 50 times that many craft distillers in the nation, how do whiskey makers stand out at such a standing-room only bar?
Middle West sees a future in proportion, partners and product.
The distillery is ramping up production at Alum Creek, while retaining its original distillery on Courtland Avenue in Weinland Park. Middle West plans to use the new distillery for whiskey while keeping the Courtland operation for clear spirits such as vodka and gin.
The Alum Creek site was tailor made for the operation, Daily said. As the former home of Oberfields’ concrete block, it is built to withstand the massive weight and size of the boilers, cookers and fermenters in the distillery, and has the utility, water and truck service necessary for the operation.
But as perfect as the building was, it still required some modification. A cap was added to part of the building to accommodate the operation’s 60-foottall copper still.
Dailey and Middle West Director of Marketing Jennifer Yunt won’t reveal the distillery’s capacity beyond saying it is one of the 10 largest distilleries in North America. For now, the distillery is producing the company’s core products — straight wheated bourbon, wheated whiskey, pumpernickel rye whiskey, and whiskey aged in casks that once held other spirits such as sherry and port.
The distillery’s capacity allows Middle West to set aside more whiskey for aging and produce for other companies, using those companies’ recipes.
“We have collaborated with partners at every stage and size of the process,” said Middle West founder and CEO Ryan Lang. “Now that our expansion is complete, we are excited to continue these partnerships.”
Middle West has produced whiskey for Horse Soldier in Florida and Old Line Spirits in Baltimore, among many others, company officials said.
Company officials believe their whiskey, which has won several awards, will also allow it to grow. The whiskey relies heavily on Ohio grains, especially soft red winter wheat, which the company says is prized for its fatty, starchy quality and its vanilla content. Middle West manages 25,000 acres of Ohio farmland that produces the crop and other grains used in whiskey such as corn, barley and rye.
“Controlling the process from farm to glass really allows us to get what we need,” Daily said.
Middle West also expects to drive business by further developing its 15acre site with more visitor-friendly amenities such as a tasting room and retail center.
“We’re looking at adding some hospitality,” Daily said. “What that looks like yet, we don’t know.”
Offering some hospitality — a tasting room, restaurant, tours or retail outlet — is key for most craft distillers, which, like craft breweries, rely heavily on on-site sales. Last year, Ohio distillers sold $9.7 million worth of liquor at their locations, about half of the $19.3 million they sold off site, according to state data.
Middle West, the state’s largest distiller, operates a retail outlet and restaurant, Service Bar, on Courtland Avenue. Other local distillers, including Watershed and High Bank, also operate restaurants.
With its new distillery and distribution in 43 states, Middle West is the king of central Ohio distilleries. But at least seven distilleries call central Ohio home, with another on the way, each taking its own path to growth.
Watershed plans to expand regionally after being acquired last year by Marussia Beverages USA. Founded in 2010, Watershed now distributes in seven states. The distillery occupies 35,000 square feet, operates two copper stills and employs more than 70 people, according to the company.
High Bank Distillery, whose Whiskey War brand has found a following, has expanded its Gahanna operations a couple of times to grow capacity and is about to open its third central Ohio restaurant.
Echo Spirits specializes in rum, a rarity among craft distillers, while 451 Spirits experiments with unusual whiskey flavors such as stout and rice, and Noble Cut produces a limoncello liqueur and flavored whiskeys
The youngest kid at the bar is DOG Distilling Co., founded by two Delaware families who plan to open a distillery this year in an 1870s-era building on East Powell Road just north of Worthington Road.
DOG, which stands for Distillery of Galena, hopes to carve its niche in part by providing a rural, welcoming setting.
“Our initial vision is to make this a nice little destination, a place where people could come and hang out and relax,” said Kevin Webb, who founded the company with his wife, Lauri, and friends Wes and Kelley Stark. “We’re really hoping our location, out of downtown a bit, will help us stand out.”
DOG is starting out with vodka, including flavored vodkas, before producing whiskey, which takes far longer. Webb said he and his partners hope to start turning a profit by the third year in business, but he knows the distilling business isn’t a quick and easy road to riches.
“It’s quite expensive to get one up and going,” he noted. “It’s not as easy as making cookies or cupcakes.” jweiker@dispatch.com @Jimweiker