BLANCO, Texas — Some Texas business owners say they have been inadvertently dragged into the debate over shutting down bars in Texas.


What You Need To Know

  • Bar shutdown order included distilleries, wineries, and breweries

  • Texas distilleries want changes to bar definitions

  • Distillery revenue is cut drastically

When Governor Greg Abbott closed such establishments because of rising coronavirus risk, the order included distilleries, wineries, and breweries. There is now a push for these businesses to be exempted.

The mushing and the malting may be some proof the workers of Andalusia Whiskey do more than sell alcohol. Since the liquor is made from scratch, owner Ty Phelps considers his Blanco-based business a manufacturer.

Andalusia Whiskey owner Ty Phelps (right) helps with the mushing and malting process at his distillery (Reena Diamante/Spectrum News)
Andalusia Whiskey owner Ty Phelps (right) helps with the mushing and malting process at his distillery (Reena Diamante/Spectrum News)

 “We can take grain a really base ingredient and turn that into high proof alcohol,” Phelps said.

But distilleries in Texas shut down again after Governor Abbott’s order in June to close businesses where alcohol sales account for at least 51 percent in revenue.

“We have been able to pivot a little bit by producing brandy for a local winery, because that doesn't have any input costs for us. But really, at this point, it's just about keeping the employees busy and keeping them on the payroll,” Phelps said.

Andalusia Whiskey’s tasting room is closed, so it’s now being used as part of the production process including labeling. (Reena Diamante/Spectrum News)
Andalusia Whiskey’s tasting room is closed, so it’s now being used as part of the production process including labeling. (Reena Diamante/Spectrum News)

Andalusia Whiskey’s tasting room, which sits on farmland, remains closed, while customers can only buy a limited number of bottles to go. Used barrels, glasses, and other merchandise are also for sale. Like many distilleries earlier in the pandemic, workers made hand sanitizer, but that has since slowed down because typical suppliers have picked up production.

Phelps said the revenue for his four-year-old business are now cut in half.

“Second shutdown now, we don't have the sanitizer sales anymore. We don't really consider ourselves a bar. We close at 5 o’clock. We're a manufacturing facility, and we really proved ourselves essential during the beginning of the pandemic,” he said.

Andalusia Whiskey’s tasting room had contributed to tourism in the area prior to the shutdown. (Reena Diamante/Spectrum News)
Andalusia Whiskey’s tasting room had contributed to tourism in the area prior to the shutdown. (Reena Diamante/Spectrum News)

Industry organizations are now calling on the governor and the Texas Alcoholic Beverage Commission to update the definitions. Spencer Whelan, executive director of the Texas Whiskey Association, said for distilleries there is a tourism component, as well.

“A distillery environment is completely different than some of the other environments that have been closed intentionally,” he said.

If distilleries do have to stay closed in the interest of public health and safety, the Texas Whiskey Association is hoping state officials could expand contactless sales. That includes being able to sell more than two bottles per person a month, sell all seven days of the week, and ship and deliver directly to customers with age-verified methods.

Customers can only buy at most two bottles a month from Andalusia Whiskey’s tasting room. Distillery owners are seeking to change that. (Reena Diamante/Spectrum News)
Customers can only buy at most two bottles a month from Andalusia Whiskey’s tasting room. Distillery owners are seeking to change that. (Reena Diamante/Spectrum News)

“Unfortunately, the law forces people to be physically present to buy from distilleries, that's a very different scenario than, say a cocktail-to-go offering at a restaurant,” Whelan said.

These business owners want more options, so it does not mean last call for Texas distilleries during the pandemic.

 “Businesses are failing left and right, if you can lighten up regulation in order to allow a business to survive during a really unique and unusual situation. I think it's a no brainer,” Phelps said.