The Power Up ⎯ SN.02/EP.05
Propel Growth Through Legislation and Community Support
A team of passionate whiskey drinkers, Kris Tatum and Jeff Arnett, wanted to open up new opportunities for the alcohol industry and support the new distillers in the state. They went on to serve as President and Vice President of the Tennessee Distillers Guild to introduce new legislation. They eventually went on to found Company Distilling and to expand their involvement in the local community.
Kris shares on The Power Up podcast, “We’ll work specially with nonprofits. They’ll submit something and we’ll go through and work with them on a small scale to help them with their needs. And by virtue, introduce ourselves in the community and to be a part of that community.”
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About The Business
Business name: Company Distilling
Founded: 2020
Founders: Kris Tatum & Jeff Arnett
Location: Tennessee
Website: https://companydistilling.com
Sales diversification strategy: Distilleries, tasting experiences, e-commerce, events
About Our Guest
Before Company Distilling, Kris Tatum was a key partner in working with legislators and others in the alcohol industry to ensure fair access to new opportunities while supporting all distillers in the state, large and small. After working with several other distillers, Kris became hooked on the idea of starting his own brand.
Kris was passionate about making drinks that you would share with your favorite guests, not wildly expensive bottles that would sit unopened for years. That’s when he partnered with his friend and colleague from the Tennessee Distillers Guild and in 2020 Company Distilling was born.
Full Transcript
Sean (Thrive): Hello everyone, it’s Sean from Thrive with another episode of The Power Up, where I meet with successful small business owners and operators to learn about their business strategy so you can take their insights and level up your own business. Once your business is ready to expand, knowing where to start can be overwhelming. Our guests have some creative solutions for how they tackled tricky problems and turned them into growth opportunities. Now let’s dive into today’s episode.
Our guest today is Kris Tatum from Company Distilling in Tennessee. Back in 2009, Tennessee only had three distilleries until the Tennessee Distillers Guild got involved. Kris served on the Guild’s board and was a key partner in working with legislators and others in the alcohol industry to ensure fair access to new opportunities while supporting all distillers in the state, large and small. Kris wanted to make drinks that you would offer your favorite guests, and in 2020, Company Distilling was born.
Alright, Kris, are you ready to get going?
Kris (Company Distilling): Yeah, sounds good.
Sean: Cool. You said that there were only three distilleries in Tennessee until the Guild got involved. You know, I personally think of Tennessee as like having a ton of distilleries, so when I saw the three number, I was a little shocked by that. So talk me a little bit about the history of the industry here in Tennessee and what’s changed since 2009.
Kris: Yes, I believe that’s right. At that point, there were three distilleries, three DSPs in the state that were active: Jack, George, and Phil Pritchard. So you had Jack Daniels, George Dickel, and Phil Pritchard. At that time, there was a jobs law, if you recall. 2009 was coming right off, and it was probably in the heart of the recession. So there was a jobs law that was brought by some legislators, and part of that big law was the opening up, if you will, of the distilling industry. So that’s where it started to grow. There was a Distillery Corair Distillery, which is still around, that was one of the first ones as well, a Short Mountain, and then we all know about Old Smokey.
I think the unique part of the Guild was that we did come along after, but we came along as a small group. There were only 13 of us. Jack and George and Phil, and Old Smokey, and all of them were not a part of it at the beginning. But it was just 13 of the small distilleries across the state that got together to form the Guild, you know, to be able to come and to have representation in Nashville and to speak with one voice. That’s been our mantra.
I was brought on, I believe, elected as president in 2015. So we spoke with one voice; that was the biggest thing we did. That allowed us a lot of success, and a lot of respect was earned with legislators and commissioners and really officials across the state, including the governor’s office during that time. So it’s just kind of great.
Now I believe there’s probably 50 plus distilleries in the state. Not all of them are part of the Guild. Some of them are very small. Some of that number may be off, too, because high-gravity beer, some people used to have to get a distiller’s license to do high-gravity beer. Subsequently, the laws have changed, so that’s a change that shook things up. But yeah, it’s grown a bunch, big time.
Sean: Very cool. Are you still with the Guild personally?
Kris: We are still a member. I am not active. I stepped off the board in August of 2020. The reason being, for me at the time, I just think that you have to have a change in leadership regardless of what you’re doing, whether it’s a guild or whatever, because you need a fresh voice. That’s the bottom line. I thought it was a good time.
I had actually planned to roll off at the beginning of 2020, but then we all know what happened there. So I was really asked to stay on, and it was flattering and necessary. We stayed on, and that’s when we got into the whole hand sanitizer thing.
Sean: Yeah, so did you guys participate in that process?
Kris: Oh, absolutely. We were one of the first ones to do it. I’m not bragging about it, but we kind of didn’t know what the hell was about to happen when it came to this coronavirus.
At my distillery at the time, I was partners on that time with Old Forge, the distiller called me on a Thursday and said, “Man, I’m doing some hand sanitizer and I’ve got it lime scented, so it’s like Corona in a lime.” We thought it was the funniest damn thing, and then come Monday it was like everything blew up from a perspective around the world.
So you pull that real quick, and then we get serious about what we can do. We do have this capability to make something that can help. So we were great. It was great. The distillers across the state, Old Forge included, kind of led the charge, and the distillers across the state provided a lot of hand sanitizer.
We had stuff as far away as New York City, Maine, Detroit, people coming down to get totes of hand sanitizer from us right there in little Pigeon Forge. So it was definitely an interesting time. Then I stepped off shortly after, in August 2020.
Sean: Got it, great. Well, next question: How do you guys at Company Distilling think about differentiating yourself in the market? Is it literally just the alcohol that you guys are distilling, or is it something with marketing or approaching your customers, or the experience in a different way? How do you go about that?
Kris: I think it’s probably the experience. I mean, my partner and one of the co-founders with me is Jeff Arnette, a former master distiller at Jack Daniels for 12 years and with the company for 17 years. His experience, his pedigree, I mean, it’s crazy good. So it’s amazing.
I don’t think we have to have some big discussion on “we’re the best” or “this is better than that” because there’s good stuff everywhere. There’s stuff that I love and stuff I don’t love, but somebody else does. So the consumer ultimately decides that.
We definitely focus more on the experience side. We want the experience to be good for you, not only in our stores in both locations, but also the experience of, like, “Hey, grab a bottle, it’s good, it’s sessionable,” so you can sit down with friends. We want to be the one that you’re finishing the bottle off with 10 or 15 people, not the one that you got that golden bottle sitting at the top that’s sitting there, and you’re like, “Hey guys, take a little sip of this.”
That’s kind of what our brand is about, just being with friends.
Sean: Sure, that’s great. Do you guys do any sort of community building or loyalty programs, or anything to kind of get your customers coming back to you and not just as a tourism factor or anything along those lines?
Kris: Yeah, absolutely. We have a couple of different things. First off, we’re very involved in our community overall, whether it’s with local communities like Hel Ross McNabb Center or different chambers across the state.
Something we’re about to launch this year is the Company Gather Round and Give Back program, where we specifically work with nonprofits. They’ll submit something, and we’ll go through and work with them on a small scale to help them with their needs and by virtue introduce ourselves in the community and be a part of that community.
Sean: Okay, are you able to share a little bit about what the Gather Round and Give Back program looks like?
Kris: Well, yes and no. I don’t really want to ruin the launch of it, but I’ll say the concept is definitely one where we’re going to reach out to nonprofits in the community that either we’re about to come into from a market basis or that we already are in.
What it’s going to do is give a little bit to everybody. That’s the thing you find most when you have a business: there are needs in the community. I’m not sure if you’re familiar with Pilot Corporation?
Sean: Are you talking about the travel stations?
Kris: Yeah, so founder Big Jim has them, and I’m sure I’ll jack this up, but he says Tennessee has a low cost of living but a high cost of giving. So we’ve got to give back to the community, those of us who have the fortune to be doing what we’re doing. So that’s where that lies.
Sean: Yeah, that makes sense. It’s great. Well, good luck on the launch.
Talk to me about how you guys are selling your product right now. Is it all physically in person? Do you sell wholesale? Do you sell online? What’s the sales strategy for your business?
Kris: The way our business is set up, thanks to that law from 2009, we have a retail store. We’re a manufacturer with permission to sell at a retail location. So anything we produce, we can sell in our stores. We have two locations, one in town and a top location.
Then, that still goes through a distributor. Anything outside the state is also through a distributor. Those are not retail stores, but like liquor stores, ABC stores, or retail stores also considered restaurants. So it runs the gamut on that.
We also have a good online partner based in DC that allows people in states that allow product to come in the ability to buy our product as well.
Sean: Got it. Who’s the online provider you said is based in DC?
Kris: That’s Seal Boox.
Sean: Seal Boox, okay, interesting. Never heard of them.
So, what are you thinking about for 2024? Where are you hoping to take the business this year? Is it opening a new sales channel? Is it the Gather Round and Give Back program? What are you looking at for the next eight months or so?
Kris: It’s definitely the Gather Round and Give Back program. We have some new expressions that we’ll be coming out with. We have our three flagships but also what we call an experimental line, so we’ll be adding to that line.
We have a big festival in November, kind of our big launch time for new iterations or new expressions of bourbons and whiskies. We’re going to continue to build our brand, not just from a year-over-year sales perspective but also from a knowledge or recognition space.
The program we have and being able to get people to attend more different events is important as well.
We’re looking at six more states, which should put us at 12 states for distribution.
Sean: Six more states for distribution, got it.
Talk to me about what it’s like to go to Company Distilling. What’s the experience like for you guys doing tours? I’ve done a couple in Kentucky, but what do you guys do?
Kris: We have a tour. We also have a brewery, by the way, I want to make sure I mention that. We launched a brewery about a year ago, so we have some great beers.
Whiskey is what beer wants to be when it grows up. A lot of brewers don’t like that statement, but I love it; it makes me laugh.
You come in; it’s very laid-back. It’s a beautiful building, of course. Both places are different and dynamically different. One is a new building, only three years old, in the middle of town, and the other is an old, I think 120-year-old, grain barn that has been renovated in the city center of Thompson Station.
It’s really just about a relaxed environment: come in, have a drink, have some food. Even if you don’t drink alcohol, we have a great non-alcoholic selection, which is something you don’t see a lot on a whiskey trail.
The community environment around us is huge. We have River Rat river rafting, tubing, and mountain biking. One of our partners has a phenomenal mountain biking course, almost 15 miles of mountain bike trails, just about three or four hundred yards down the road.
We’re right at the mouth or opening of the Great Smoky Mountains National Park. The town’s location, Thompson Station location, a fine dining restaurant right beside us, it’s a great restaurant.
You’re only 30 minutes from Nashville, so it’s fantastic with all that there is to do in Nashville.
The experience varies, but comes back to a common theme of gathering around or sitting together and enjoying each other’s time. We want to provide those environments at both locations, whether inside or outside, January or July, it doesn’t matter.
Sean: What’s the name of your brewery? Is it under Company or something else?
Kris: It’s under Company. We don’t do any distribution on it. It’s just stuff that we have there. We put a system in from the beginning.
Sometimes, coming off the bike trail or greenway or a hike, you’re not necessarily going to want to grab bourbon neat or on the rocks, but having a good cold beer is important. That was the concept behind it.
Sean: So, anyone that goes to your website will be able to find your beer selection at some level?
Kris: Absolutely. There’s a link to buy, a link to see, and to have reservations for different types of tours. You can still grab some food while you’re there. We have a great little local restaurant on-site in our building.
Sean: Okay, last quick question, and I have a few rapid-fire questions after this. Sell us on your favorite bottle. What’s your personal favorite bottle at Company?
Kris: It’s our flagship, our original flagship. We have three flagship expressions right now: a maple finish Tennessee whiskey, which is an applewood finish, and then we have a rye that’s a cherrywood finish.
I just think the maple wheat bourbon, which is our original blue label, is smooth and good. You can have it neat or with one ice cube; anything else is just wasting the spirit.
Sean: Great choice. Alright, rapid-fire questions coming at you. Ready?
Kris: Bring it on.
Sean: Alright. First one: What’s one book or resource that’s helped you most in your business journey?
Kris: I’m a big fan of “Good to Great” by Jim Collins. It’s a classic, but it really helped me understand the importance of disciplined people, disciplined thought, and disciplined action. It’s foundational.
Sean: Nice. Next: What’s one tool or software you can’t live without?
Kris: I’d say our inventory management system. We use Thrive, which helps us keep track of everything from raw materials to finished goods, especially important in distilling.
Sean: Perfect. What’s one piece of advice you’d give to someone starting a distillery today?
Kris: Be patient and focus on quality. It takes time to build a brand and a product that people trust and love. Don’t rush the process.
Sean: Love that. What’s one thing you do to recharge or get inspired?
Kris: I spend time outdoors, hiking or just being in nature. It clears my head and gives me perspective.
Sean: Awesome. Last one: What’s a fun fact about you that most people don’t know?
Kris: I’m a huge classic car enthusiast. I’ve got a ’67 Mustang that I’ve been restoring for years.
Sean: That’s so cool! Alright, Kris, thanks so much for sharing your story and insights with us today. Where can folks find you online or in person?
Kris: You can find us at companydistilling.com. We’re on all the social channels under Company Distilling, and we’d love to see you at either of our locations in Tennessee.
Sean: Fantastic. Thanks again, Kris, and best of luck with the Gather Round and Give Back program and all your upcoming releases.
Kris: Thanks, Sean. Appreciate it.
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