Expansion Announced

(Jonesborough, Tenn.) – A Tennessee distillery that has become a local tourism and spirits destination, has announced a significant investment in its production capabilities. The one million-dollar expansion of Jonesborough’s Tennessee Hills Distillery will increase its on-site production capacities as well as expand its tourism hosting amenities in Tennessee’s oldest town. The investment will create new jobs and additional tax revenue.

“I want to say how grateful we are for the incredible response and support our customers have provided for Tennessee Hills Distillery,” states Stephen Callahan, owner and founder of the distillery. “When I first opened our distillery with a dream and a passion, I could have never guessed how quickly our customer base would grow.  For that I am tremendously grateful.”

Callahan says the demand for his products has necessitated his company to source some of his bourbon, gin, rye, and base spirits through a partnership with a third-party distillery. “There have been a few questions about our sourcing practices for some of our popular spirits, and I wanted to be sure to share the information with our customers. My goal is to build a spirits brand that is independent of investors or outside parties. The demand for some of our products have outpaced our capabilities in the near term, and we have engaged a sourcing partner to help us meet those demands.”

This is an industry standard practice, especially for smaller craft distilleries to meet demand and generate cash flow for healthy growth.  Many of the liquor industry brands use a similar practice in order to provide a consistent and quality product to their customers.

“It’s really important to me that people understand that our products are still made to our specifications,” continues Mr. Callahan. “These are not just a bottle and a label.  Our barrels are hand selected and blended to my desired flavor profile and are unique to Tennessee Hills Distillery. We’re very happy with the quality of the products and with the response we’ve had by our customers.”

The distillery makes many of its spirits on premise.  Its Vodka, Rum, and straight Corn Liquors are distilled on premise under the care of Stephen himself.

“Our plan has always reflected those of many other similar distilleries,” says Stephen. “We want to be able to share what we love with our customers, and see if there is a demand.  Having a product sit in a barrel for years, and then find out it’s not liked is a dangerous way to do business.  With the continued success that we’ve had with our spirits, Tennessee Hills Distillery is now confident in expanded distilling capabilities inside our facility.” 

“In 2018, Tennessee Hills Distillery sales generated approximately $50,000 in tax revenue to the region,” stated Jessica Callahan, Stephen’s wife and co-founder of Tennessee Hills Distillery. “This year, we will generate around $80,000 in tax revenues thanks to our customers and successful growth. This is nearly a 40% increase in benefit to our state, county and town.”

The couple—who are the only two full-time employees of the small distillery—have also been generous financial supporters of community organizations including; the local Humane Society, Susan G. Komen, and Steppen Stone (an organization that helps at-risk local youth).  Their commitment to support their community comes from a genuine desire to see the region grow and prosper.

“We’ve taken great care to be diligent in the way we talk about our products with guests and customers,” continues Stephen. “Our labeling has been specifically crafted to be truthful, and allowing us the opportunity to bring these spirits in-house over time without the need for unnecessary changes in the brand.”

Stephen Callahan has built his business on an open relationship with his customers, and is happy to answer any questions. “If any of our customers have any questions about our products, or our business practices, we’ll be happy to speak with them,” said Stephen. “As I said, we are incredibly grateful for everyone that has supported our products, and if you have any questions at all I’m happy to speak with you directly.”