U.S. consumers spend $25 billion on organic food, beverages

By MATTHEW WEAVER

Capital Press

Use of wheat in vodka products may open up another market for wheat growers, an Idaho industry representative says.

The Sidney Frank Importing Company, located in New Rochelle, N.Y., recently launched American Harvest organic vodka.

John Frank, vice chairman for Sidney Frank, said farmer Steve Rhodes grows the organic winter wheat used in the product in the Rigby, Idaho area. The farm has been in Rhodes' family for nearly 100 years and was certified organic in 2005. The company distills the vodka product in Rigby as well.

Frank said Rhodes was not available for comment.

Frank said the company developed the organic vodka because "organic is a symbol of a premium, quality product and is a point of differentiation in spirits."

The number of organic vodkas and organic spirits is growing, Frank said. U.S. sales of organic food and beverages are at $25 billion and growing. Organic is also a means of supporting sustainable agriculture, he said.

"Creating a product that gives back to the earth is important to us, to our partners and to our consumers," he said.

Travis Jones, executive director of the Idaho Grain Producers Association, said American Harvest joins other vodka products using Pacific Northwest wheat, including products by Dry Fly Distilling Inc., in Spokane, Wash., and 44 North Vodka, also produced in Rigby.

Jones sees wheat used in vodka as an emerging niche market, tapping in to increased demand for organic, sustainable and locally sourced products.

"It's really the hot market trend," he said.

There's a "gigantic rush" into the smaller distilling industry, said Don Poffenroth, co-owner of Spokane's Dry Fly, noting 70 people are trying to get licensed in Washington state.

"I think people are going to find this is a way more difficult industry than anyone imagines," he said.

Poffenroth's company uses wheat in its vodka, gin and whiskey. The variety Dry Fly uses is low in protein and high in starch.

Wheat has been used as an ingredient in alcoholic beverages "forever," he said, but in the Northwest many distilleries didn't exist until four to five years ago. Federal regulatory changes at that time made purchase of relatively small commercial-grade equipment viable, he said.

Poffenroth doesn't foresee much effect to the market, as Dry Fly will use "an inconsequential amount of wheat," about 10,000 bushels this year. The majority of small distillers don't make anything from scratch, he said. Farm-to-bottle manufacturers such as his company are rare.

Jones said the grain producers association works to form relationships with companies and barley brewers. Increased use of wheat as an ingredient in vodka opens the doors to further partnerships and work on common objectives, he said.

Alcohol consumption is limited to customers who drink it, but Jones could see wheat products taking over more of the vodka market share.

"It's good to see new markets for growers," he said. "The more diversity, the better off those growers are."

Online:

Sidney Frank Importing Company: www.sidneyfrank.com

Dry Fly Distilling: www.dryflydistilling.com

Idaho Grain Producers Association: www.idahograin.org