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Heritage Distilling purchases Oregon’s Thinking Tree Spirits

Heritage Distilling Co. is growing.

Gig Harbor’s award-winning craft distillery recently acquired Thinking Tree Spirits, Inc., a craft distillery based in Eugene, Oregon. Emily Jensen, Bryan Jensen, and head distiller Kaylon McAlister founded the Oregon distillery in 2014.

Thinking Tree’s founders approached Heritage looking for a partner with the same “focus on quality and purposeful spirits.” The Eugene distillers wanted a partner who would continue to drive culture and community connection and understood the growing craft spirits landscape.

“They have a great reputation in the state of Oregon,” Heritage CEO and cofounder Justin Stiefel said.

A Thinking Tree Spirits building in Eugene, Oregon. Photo courtesy Heritage Distilling

Thinking Tree

Thinking Tree Spirits sells handcrafted gin, rum, bourbon, vodka, seasonal spirits, and ready-to-drink cocktails. Wine & Spirits Magazine selected the Eugene company’s Butterfly Lavender Vodka as its Vodka of the Year.

Heritage plans to retain the Oregon distiller’s unique narrative. Heritage is “a house of brands, it’s not a branded house,” Heritage cofounder and President Jennifer Stiefel said.

Currently, Heritage and Thinking Tree operate locations just a few blocks away from each other in Eugene’s Whiteaker District.

Production of both brands will move to the current HDC location, while the HDC tasting room, samplings, drink service, and Cask Club will move down the road to Thinking Tree.

Heritage will expand the tasting room at Thinking Tree, tripling the current footprint. Both Heritage and Thinking Tree products, samplings and drinks will be available in the newly combined tasting room.

Heritage expects to complete the move and expansion by Memorial Day weekend. HDC also maintains a second Eugene tasting room in the 5th Street Public Market.

A selection of Thinking Tree Spirits products. Gig Harbor-based Heritage Distilling acquired the Oregon-based craft distiller. Photo courtesy Heritage Distilling

Direct-to-consumer and Tribal Beverage Network

The Thinking Tree acquisition is one of several moves by Heritage in recent months.

Last April, HDC established a direct-to-consumer partnership with Speakeasy Co. Consumers in 34 states can now buy a selection of Heritage spirits from the company’s website to be delivered to their homes.

Meanwhile, contractor bids arrived last week in Payson, Arizona, the site of the latest Tribal Beverage Network-Heritage Distilling partnership: A spirits distillery and tasting room for the Tonto Apache Tribe.

It will be the first Heritage location in the U.S. Southwest, located about 95 miles northeast of Phoenix. Adjacent to the Mazatzal Hotel & Casino, the project will also become Arizona’s first tribally owned and operated distillery on native land.

“We have spent considerable time with the team from Heritage and we have toured their facilities in the Pacific Northwest,” Tonto Apache Tribal Chairman Calvin Johnson said. “After seeing them help to change the federal law to make this a legal activity for Tribes across the U.S., we are excited to open a tribally-owned distillery in partnership with them harnessing their experience, expertise, and top-level reputation in the craft spirits space.”

The Tonto Apache Tribe is the second to join the Tribal Beverage Network, joining the Chehalis Tribe of Thurston and Lewis counties. The Chehalis Tribe joined with Heritage in 2018 to successfully lobby Congress to repeal a ban on distilleries in Indian country.

Heritage established the Tribal Beverage Network to develop Heritage-branded distilleries with tribes. This encompasses brands, tasting rooms, and the creation of unique tribal brands tailored to customers at tribal casinos and venues.

“It’s expensive to get into this business,” Justin Stiefel said. “We supply all the front and back end. So the casino can continue running the casino.”

Toasting the troops

Heritage also launched its Special Operations Salute (SOS) series in November 2023.

A portion of the proceeds from each bottle sold in the series goes to nonprofits that support U.S. soldiers, veterans and their families. The program has raised $60,000 so far.

The Special Operations Salute series from Heritage Distilling. Photo courtesy of Heritage Distilling

The idea started more than seven years ago, when the 1st Special Forces Group (Airborne) at Joint Base Lewis-McChord near Tacoma asked Heritage to develop a limited bottling run for a fundraiser.

The Stiefels said the consumer response to the launch last fall was “fantastic,” with the first release selling out in a matter of weeks. “It’s a brand for and about people who have made sacrifices,” Justin Stiefel said.

Stiefel noted that the HDC name is not on the front label of the bottles in this series. “This is not about us,” he said. HDC plans to expand the series to benefit police and other fire responders.

Growing a national presence

In December 2022, Heritage Distilling announced plans to go public through an agreement with Better World Acquisition Corporation. The deal would have made Heritage one of the only publicly traded pure-play craft distilleries in the country.

But Heritage canceled the acquisition in May 2023. “It felt like it was not going to be a good fit for our shareholders based on how (special purpose acquisition companies like Better World) were performing,” Justin Stiefel said. By summertime, Better World announced its intention to liquidate and dissolve.

Heritage continues to increase national distribution. Oklahoma, Kentucky and parts of Texas are on the horizon, and the company is eyeing Colorado and Kansas. With anything alcohol-related, Stiefel said, “you have to go through an in-state license partner.” But “getting distribution in another state is a big deal,” he added.