Public Act 218 becomes law - MBC shares the win in creation of Michigan's new 'Micro-Distilleries

MSU Professor Kris Berglund & MBC President Bobby Mason standing proudly in front of one of the German-made CARL stills located onsite at MBC

Sitting down with a couple of glasses of High Seas India Pale Ale, Michigan Brewing Company (MBC) President Bobby Mason and MSU Professor Kris Berglund reflected on a non-stop year-and-a-half that resulted this month in Michigan Governor Jennifer Granholm’s signature on Public Act 218.  The new legislation was championed by Michigan State Representative Barb Byrum.

The new law allows small distilleries to market and sell their distilled grain-based spirits onsite – something that has been impossible before. “In the past, distillers could only sell their products through the liquor distribution system with a $10,000 and most recently a $1,000 license. Now they can set up retail operations onsite, much like breweries or wineries do – with a license that will cost $100,” says Berglund.

The move to create these “micro-distilleries” is based on years of research by Berglund, a Distinguished Professor of forestry and chemical engineering at Michigan State.  He has been studying distilling processes and conducting how-to workshops since 1997.

He says the idea to use local grains to create local distilled spirits and a new local industry goes way back for him.  “I remember thinking about this years and years ago and, after doing some preliminary research, there just seemed to be too many obstacles here in Michigan to make it happen,” says Berglund.

In 2007, with the downward shift in the economy and a new association with Michigan Brewing Company, Berglund brought the idea back to the front burner. 

MBC President Mason remembers getting a call shortly after settling into his new 76,000 sq. foot brewery in Webberville, Michigan. “This MSU professor basically called one day and asked if I wanted a still,” he says.  The still turned out to have been part of Berglund’s distilling workshops at MSU that no longer had the appropriate space to continue.

“So basically, Bobby said yes to the still, but then I told him that the classes – and I – would be coming with it,” says Berglund.  It has since been a very successful association that soon engaged a broad cross-section of stakeholders: the Michigan Agri-Business Association; local brewers and distillers; the Michigan Economic Development Corporation, liquor distributors or “Class C License holders”, and the Liquor Control Commission among others.

Berglund provided extensive background information to Byrum in crafting the bill and testified before both the House and Senate as they considered the legislation. Gov. Jennifer Granholm signed the bill into law earlier this month.

The experience and infrastructure now present at Michigan Brewing Company (MBC) in its association with MSU will make it one of Michigan’s first micro-distilleries to sell its own Vodka, Gin and the resurging Absinthe. “And with the state-of-the-art gas chromatographs and other equipment, MBC is really set up to become the epicenter of artisan distilleries in the United States,” says Berglund.

Mason adds that through his partnership with MSU, other distillers and brewers will be able to access full analytical services at the MBC facility for the foreseeable future.  “This really has been an amazing example of collaboration for a positive economic outcome for all concerned.  We plan to try to keep that open culture as this new local industry begins to take hold,” says Mason.

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