THE BIGGEST MISTAKE THAT NEW BOURBON DISTILLERS MAKE

Source: Louisville Business First
David A. Mann, Mar 28, 2016

Companies that are getting into the distilling business often think about form over function.

Kentucky - and Louisville, in particular - has seen a boom in new distilleries in recent years as bourbon has grown more popular around the world. Design is top of mind for companies that open distilleries because bourbon and tourism go hand-in-hand, and the distiller often wants to give visitors an experience to remember.

But thinking about design first isn't the easiest or most cost-effective way to start a new distillery.

"If you want to start a distillery, don't start with the architects," said CJ Archer, vice president of business development for Vitok Engineers Inc. Starting with the functionality of a new distillery often can save money and time.

Archer offered as an example a distillery where the architects didn't leave enough room for power equipment. As a result, a large motor control center had to be built on its own separate platform. In another instance, he saw an architect that did not consider the fact that stills have to be built in areas that are classified to handle explosions.

The biggest overall problem, he said, is that many architects don't have an overall idea of what's involved in the distilling process - the piping, the pumps, the vessels and the tanks. "They don't have a concept of what goes in the space."

"Let us take a crack at it first," said Vitok president Patrick Kelty.

Ownership change

The guys at Vitok ought to know, considering how many distilling projects they've had a hand in. Right now the firm is working on the O.Z. Tyler Distillery in Owensboro, the Angel's Envy Distillery on Main Street in Louisville, Castle & Key Distillery in Woodford County and Rabbit Hole Distillery in Louisville.

That's just to name a few active ones, said Kelty. "With the recent boom in bourbon distillers, (the industry has) become our biggest customer. We've worked with every major distiller."

About 60 percent of the firm's business is in the distilling industry. The company plans to keep it that way, even as a new ownership group takes the reigns there.

Vitok recently was purchased by a group of six employees - Archer; Kelty; John Willis, vice president of project management; Jason Bush, lead structural engineer; Pamela Stith, chief chemical/environmental engineer; and office manager Debbie Wilson. They purchased the business from Phil Hambrick, Les Rhinehart and Peter Easton, who are all still engineers there, for an undisclosed price on Feb. 19.

Archer, Kelty and Willis are officers of the company, which has about 35 employees. Its office is on Plantside Drive in Louisville.

Distilling roots

Distilling is a focus, but Vitok serves other industries as well. About 30 percent of its business is in chemical engineering. It also works with metal-rolling firms and other manufacturers, Archer said. And it distributes parts for carbon dioxide scrubbers that are used in nuclear submarines.

Bourbon has been a good fit for the company because of a previous owner's connection to the industry.

Hambrick had worked as an engineer at Louisville-based Vendome Copper & Brass Works Inc., which manufactures stills, from 1981 to 1998. When he came to Vitok, he brought a lot of industry knowledge and contacts with him.

Over the years, the company has built on that through its involvement in distilling projects. The industry has changed over time, of course.

Ten years ago, there wasn't such demand for new bourbon distillers. And when projects were proposed back then, no one really thought about the visitors experience - thinking instead about the functionality of the facility, Kelty said.

All the industry growth we've seen lately is a trend that has legs, according to Kelty. He believes the distilling boom in Kentucky is going to continue because bourbon is just now starting to take root in international markets.