It's been said that to know where you're going, you first have to know where you've been. What makes this quest easier, though? Having not gone far or having gone so far that there is a veritable wealth of history upon which to reflect? It seems where depth and true innovation are concerned, the latter rings true, and this is precisely the case of one of America's most storied beverage suppliers, Phillips Distilling Co. Simply put, this daring company is a pioneer.
    And while Phillips Distilling has come a long way in its many years, it shows no signs of stopping the journey to ultimate success. In fact, recently Phillips has quickened its pace.

Deep Roots
    Established in Wisconsin in 1912 as a candy, tobacco and newspaper outfit, the original Phillips operation had yet to break into the realm of beverage. That is, until, inspiration struck one day, and a promising iron was placed in the fire.
    “Phillips introduced America's first peppermint schnapps back in 1935,” says Dean Phillips, president and CEO of Phillips Distilling Co. and great-great-grandson of the company’s founder. Phillips says that after the Prohibition repeal of 1933, the opportunity for expansion into the realm of alcohol beverages was realized when Al Dorsch, a German immigrant and employee of the company, observed the trend of bar guests dropping peppermint candies into their “white lightning” and other less palatable drinks to better their flavor. Soon afterward, peppermint schnapps was born.

The Phill-osophy
    While this was the origin of Phillips Distilling’s well-embraced philosophy of innovation and experimentation, it also became the company’s platform.
    The company pioneered colored vodkas in the 1950s, “the impetus to our UV Vodka,” Phillips says, and in the ‘80s (the golden era of schnapps) the company provided America with root beer and cinnamon flavors. In the late 1980s, however, Phillips exited its wholesale operations in favor of brand building. Needless to say, though, the efforts to pioneer continued forward.
    “In the ‘90s, we set up a separate company (Millenium Import Co.) –– under my father’s leadership –– and introduced America’s first luxury vodka, which was Belvedere ... followed by Chopin,” Phillips says. Two keys to such successful brands, he says, are selling awareness and showcasing each one’s (grass) roots. It is about establishing a niche and demonstrating that niche power to operators, he says.
    “We hang our hat on innovation. It’s the whole basis of our platform and enterprise."
    Phillips says that forging new molds –– and often setting new benchmarks –– sets Phillips Distilling Co. apart from a less experimental crowd, yes, but he adds that everything that’s new, at some point, was old. It is the merger of old methods and categories with modern trends, technology and production processes that furthers innovation.
    “We are a company literally built on watching what’s happening on-premise,” Phillips says.

Living Up to the Legacy
    When Nightclub & Bar asked Phillips if he found it advantageous to be a smaller company than a Diageo, Pernod Ricard or Fortune Brands, for example, he replies, “Yes –– with a capital ‘y.’”And what is his reasoning?
    “My biggest fear,” he says, “is growing to a point where I don’t know everybody in our company ... this is much more about maintaining this family, independent spirit that really inspires all of us.”
    In this spirit, Phillips Distilling Co. today bonds well with independent operators. There is a relationship on-premise that begins with a nod and an understanding –– and today that sense of supplier/operator camaraderie has taken Phillips’ products to new levels. From the company’s line of flavored UV Vodkas –– Orange, Vanilla, Citruv, Apple, Cherry and Blue Raspberry –– to its ultra-innovative line of Phillips Union Whiskey (Cherry, Vanilla and regular; all are blends of Canadian whisky and Kentucky Bourbon), and more, Phillips Distilling Co. lives up to its lengthy legacy.
    “The true way to differentiate and show customers a different experience or a different taste is to offer brands that they might not have found or tasted before –– and that’s what inspires people to come back –– and that is what allows you to develop a reputation.” NCB