2018-01-04 Liquor Commission Minutes

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David Puckett, President of Big Island Distillers was present. Mr. Puckett described his business as being small with him being the only employee at present. He is looking at producing a thousand cases per year, which he considers small- scale compared to other distillers. There was discussion between Mr. Lopez and Director Takase about the category of the license (Category A). Takase: He has that Category, but he doesn't have to do everything in it. Lopez: Understood. But if he chooses to at some point, would he have to come back? Takase: No. He would be set to go, that's why he has an entertainment category. He could have a restaurant attached to this for instance, then you just need to classify it with what they have, if there's live entertainment (inaudible). Lopez: So it's a matter of best suitability given the situation, with the Category? Takase: It's the best Category for him to start off with. Lopez: Thank you. Taniguchi: Are there any other questions? (Inaudible). Is there anything you'd like to add? Puckett: Being that I'm the only employee, I have a three-year projection right now. If I'm able to sell that thousand cases, I'll have about an eleven percent profit margin. As my whiskey ages longer in barrels, on the premise that for two years of aging my profit margin jumps quite a bit because those bottles will be (inaudible) that much longer. It sounds like a lot. I have a schedule where my distillery will run two times a day on Monday, Thursday and Friday. The other days will be geared for reporting, cleaning, sanitizing, (inaudible) and such like that. So as far as I'm concerned, it's very doable for me. On the bottling side, I'll be bottling my own bottles, and labeling my own bottles. If we break it down to how many days a year I'll be working, I need to bottle about 60 bottles a day which I'll be able to accomplish on Tuesdays and Wednesdays. I'll be able to bottle for the whole week. I plan to probably open retail sales out of there on Tuesdays and Wednesdays. I have safety concerns. I can't be disturbed while I'm distilling so I can't be stopping in the middle to sell a bottle. If I get someone to help me, there goes my profit margin. (Inaudible) Puckett: I was going to make a half traditional bourbon recipe and the other half a sugar (inaudible) and then a straight sunny spirit. I'm juggling with a (inaudible). I have a friend and we (inaudible) that are (inaudible) approved under his license and (inaudible). But it was approved by the (inaudible). Vodka takes more elaborate equipment to distill, but I do have plans to add a third line of an Okinawa sweet potato, purple potato and honey vodka. I'm hoping that will be a big seller. Vodka doesn't take much skill to distill. JANUARY 4, 2018 - LIQUOR COMMISSION MINUTES 4