Virginia's Surging Craft Beverage Industry

The Dog & Oyster Vineyard

The Dog & Oyster Vineyard, Lancaster County

Ardent Craft Ales

Ardent Craft Ales, Richmond

Virginia's first brush with alcoholic beverage production came in 1620, when English settler George Thorpe distilled the first batch of corn whiskey in what would become the United States at the Jamestown settlement near Williamsburg. Two of the Commonwealth’s most famous residents, George Washington and Thomas Jefferson, attempted to distill beverages at their Virginia estates. Four centuries after Jamestown, the Commonwealth’s craft distilleries, wineries, and breweries are building on that history.

The Commonwealth has 291 vineyards and wineries, the sixth-highest total in the United States, and more than 70 distilleries, including the country’s largest craft producer of American single-malt whiskey (Virginia Distillery Company in Nelson County). Craft beer production has skyrocketed over the past decade to the point that VinePair.com, the internet’s most-read beverage website, ranked Richmond as the world’s top beer destination in 2018.

Virginia’s craft beverage producers are capitalizing on a national appetite for local products. A 2018 article in The Atlantic noted that the number of brewery establishments grew sixfold nationwide between 2008 and 2016 — during a time when U.S. beer consumption declined. In that article, Brewers Association Chief Economist Bart Watson said, “The craft beer movement was driven by consumer demand.” Craft distilleries, meanwhile, sold 7.2 million cases nationwide in 2017, with an annual growth rate of 23.7%, according to the American Craft Spirits Association’s Craft Spirits Data Project.

The keys to the rise of Virginia craft beverage production lie in a now-friendly regulatory environment, abundant resources, and an industry-wide spirit of collaboration.

Top Wine Producing States

Virginia Wine: Fueled by Collaboration

A collegial atmosphere has helped buoy the Virginia wine industry since the days when Jefferson made two unsuccessful attempts to cultivate wine grapes at Monticello, outside Charlottesville. (The first attempt was cut short by the Revolutionary War; the second is generally attributed to a pest that was deadly to the European vitis vinifera grapes he planted.) “The Virginia wine industry is truly one of the most inclusive you’ll ever see. The concept of competition is absurd,” said George Hodson, CEO at Veritas Vineyards & Winery, located near the northern entrance to the Blue Ridge Parkway in Afton.

That atmosphere has enabled the wine industry to grow quickly, with the number of wineries in the Commonwealth nearly tripling since 2005. Hodson’s new sparkling winemaking equipment at Veritas should be ready to bubble up other wineries’ product on contract in time for the 2020 harvest. Another Charlottesville-area winemaker, Michael Shaps — who has expanded his Michael Shaps Wineworks production facilities four times in 12 years — is bringing another building online to make more wine for his neighboring vintners. Currently, he has 15 contracted clients.

“It helps the growth of the industry,” Shaps said. “This allows people to develop vineyards without the millions of dollars they need to build a winery.”

Winemakers tend to support the use of land for growing grapes, not only as a way to bring jobs and economic opportunity to rural areas and bring younger generations back to their family farms, but as a way to preserve it from encroachment by developers and generate more tax revenue than they would by putting it out to pasture.

Christopher and Kiernan (Slater) Patusky brought their kids back to Kiernan’s 300-year-old family cattle and feed farm in Fauquier County in Northern Virginia to plant grapes and produce wine under the Slater Run label. Almost entirely run by the Patuskys and Kiernan’s relatives, six-year-old Slater Run will boast two production buildings and a new tasting facility later this year.

Michael Shaps Wineworks

Michael Shaps Wineworks, Albemarle County

“It’s just a really, really important industry for these rural areas,” said Patusky, whose children constitute the family farm’s 11th generation. “These older farms are no longer as viable as they were, so agritourism is a great way to keep the agricultural lifestyle alive, active, and economically viable.”

“The idea of agriculture and good animal husbandry is that you bring that economic activity into a community,” said Jennifer McCloud, an entrepreneur who’s recently opened a culinary center called The Ag District to make and sell estate bread and cheese on her cattle farm and vineyard, Chrysalis Vineyards, in Middleburg in Northern Virginia.

McCloud primarily focuses on reviving the state’s nearly defunct native Norton grape, the world’s most disease-resistant varietal and once revered for its ability to make what judges at an 1873 competition in Vienna called “the best red wine of all nations.” In addition, McCloud says she’s the primary source of Alvariño grapes in America.

Generally, Viognier, Petit Verdot, Cabernet Franc, and Tannat grapes also grow well, and at Veritas, Hodson is in the process of branding a line of some of these otherwise underrepresented wines under the name True Heritage to sell exclusively for distribution as a way to expand recognition of Virginia wines outside their tasting rooms, where 90% of the state’s bottles are sold. According to the Virginia Wine Board Marketing Office, Virginia’s microclimates resemble the conditions of European grape-growing regions in Southern France, Southern Italy, and parts of Spain.

But more often, Virginia’s vintners prefer to emphasize their own terroir — in whatever form that may take.

Chatham Vineyards on Church Creek sits on sandy, loamy soil that imparts “terrific” acidity and minerality to its “runaway” Church Creek Chardonnay, says co-owner Mills Wehner. Located in Machipongo in Northampton County, it also enjoys a rare proximity to the ocean.

“We’re deeply committed to the Eastern Shore of Virginia,” she said. “We sell the shore first, wine second.”

Virginia Craft Spirits: Local Focus Leads to Better Products

Like Chatham Vineyards, Virginia distilleries have a strong focus on locally sourced grains. According to a 2018 analysis prepared for the Virginia Distillers Association, Virginia’s craft distilleries source more than 70% of their agricultural ingredients in-state. “We get all of our corn and barley from Virginia,” said Tom Murray, whose MurLarkey Distilled Spirits in Prince William County has won 23 prestigious regional, national, and international awards and recognitions since opening in 2015.

Types of Distilled Spirits Produced in Virginia

In Charlottesville, Vitae Spirits Distillery varnishes its local credentials by emphasizing what co-owner Ian Glomski calls “community terroir.” As a gluten-free distillery that chiefly makes rum instead of grain spirits, it can’t source enough raw materials in Virginia to fulfill any traditional sense of terroir. Instead, he partners with a coffee roaster to make cold-brew coffee liqueur and a neighboring barbecue restaurant to grill the Louisiana sugarcane he uses to distill rum.

“There’s an influence of geography and geology, but it’s also the terroir of the community [in our rum],” said Glomski, a former professor of microbiology at the University of Virginia School of Medicine.

There's an influence of geography and geology, but it's also the terroir of the community [in our rum].

Ian Glomski Owner, Vitae Spirits Distillery

As Gareth Moore, founder of Virginia Distillery, said, “If you’re a grain farmer in Virginia selling outside of Virginia, you get a commodity price. But if a distillery wants to say it sources in Virginia, consumers see that as a differentiated product, and the grain farmer gets a higher economic impact by selling to us. If you’re able to put that stamp on the bag that says 100% Virginia-grown grain, you’re able to get a bit of a premium.”

That reliance on local supplies extends beyond the grain being distilled. This year, Virginia will be able to even more directly connect with its 400-year-old whiskey tradition when Scotland’s famed Speyside Cooperage completes its $35 million investment in a new barrel cooperage in Smyth County and a stave mill in Washington County — both in the I81-I77 Crossroads region — to capitalize on the region’s abundance of white oak, the wood needed to age bourbon. The barrels should live long lives in Virginia, as distillers will likely pass used ones onto other producers in the brewing and winemaking businesses.

Just as Virginia’s wineries fulfill the dreams of Thomas Jefferson, the Commonwealth’s craft spirits also echo back to colonial days. George Washington operated a distillery at his estate at Mount Vernon in Fairfax County that was one of the United States’ largest whiskey distilleries at the time. The Mount Vernon conservators have reconstructed the distillery and produce small-batch whiskey on-site.

Mount Vernon Whiskey Distillery

Mount Vernon Whiskey Distillery, Fairfax County

Virginia Craft Beer: Filling a Consumer Niche

Virginia’s burgeoning craft beer industry runs on the same generosity that drives whiskey barrels to flow from company to company. “Virginia is pretty friendly to breweries, quite famously. Richmond, specifically, has this great burgeoning community, and we’re interested in helping everybody succeed,” said Dominic Engels, CEO of Southern California-based Stone Brewing, which chose to locate its East Coast production brewery in Richmond after considering numerous other sites in more than 20 states. The company opens up the lab in its LEED-certified facility to smaller breweries that can’t afford to equip themselves with as much technology.

The craft beer industry in Virginia took off following the passage of the “tasting room law,” which allowed breweries to sell beer by the glass at their brewing facilities, in 2012. At the time, there were 50 craft breweries in operation; that number has now grown to 280, 12th-most in the country, producing more than 400,000 barrels of beer annually.

Q1 2020 Beer Graphic

Even in more urban parts of Virginia, brewers are doing what they can to take from and give back to the natural environment. Richmond — particularly the post-industrial Scott’s Addition neighborhood — has amassed nearly 40 breweries and an international reputation for great beer.

The Veil Brewing Co., Richmond

The Veil Brewing Co., Richmond

Repeatedly named among the best breweries on the planet by rating sites like RateBeer.com and other media, The Veil Brewing Co. captures the environment by naturally inoculating the beers they brew at one of their four current and planned locations. Rather than fermenting with packaged brewer’s yeast, head brewer Matt Tarpey lets his liquid sit in an open vessel overnight to capture the airborne yeast and bacteria that come in from outside, after which it ferments in a wooden barrel.

“We pump wort [unfermented beer] into a koelschip for 16 hours, and that’s when it’s inoculated by microflora,” Tarpey said.

Though brewers at the globally acclaimed Hardywood Park Craft Brewery, with two Richmond-area locations, probably aren’t putting Atlantic sturgeon in their beers, they are working to improve the fish’s ecosystem so that others might profit from it (and perhaps pair drinks with it). Since 2013, Hardywood has donated $5 from the sale of every barrel of The Great Return IPA to its biggest charitable beneficiary, the James River Association.

“For decades, the James River used to be a way to get rid of waste for the cities upriver from us,” said Hardywood co-owner Eric McKay. “The Atlantic sturgeon was thought to be long gone, and scientists couldn’t believe it when they spotted them spawning.”

A healthier natural environment leads successively to higher-quality ingredients, better-tasting product, more awards and acclaim, amplified visitation, higher sales and price points, an ability to command more respect in the marketplace, and broader economic expansion opportunities on the macro and micro levels.

That’s how craft beverage producers draw on the Commonwealth’s array of resources — prime conditions for sourcing ingredients, a collegial environment enabling friendly competition, and a population that’s thirsty for the next great flavors bubbling out of Virginia vats and stills.

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