Feb 3, 2006 UPDATE:

Walk through our new facility on Orcas Island!

More on the move at https://madronadistillery.com/orcas-island/

More info on Madrona Distillery:

Madrona Distillery is building a global gin brand. Our strategy has been consistent from the start: Establish international connections with the best in the industry and distill gins we are proud to place in the finest cocktail bars in the world.

An Island Destination Experience

We are enhancing our brand and our customer experience by moving operations to a beautiful distillery on Orcas Island in the San Juan Island Archipelago. This new site will be a showpiece destination for the thousands of annual visitors and island residents. Orcas Island is known around the world as an exceptional travel destination for outdoor experiences and fine food & beverage hospitality.

The new location on Orcas Island is loaded with handcrafted metal work fabricated on the island.

There are a lot of words on this next slide, but short story is that went for the best when creating our gin recipes. We hired the best and followed his advice for selection of ingredients and suppliers. It costs more, but it's worth it!

Dry Gin was our first release and was a project I worked on throughout my studies at Heriot Watt University and Cal Davis. The same qualities that make it perfect for a dry Martini also match well with any cocktail that calls for gin.

Garden Club Gin is a nod to gardeners everywhere and also gin drinkers who appreciate the way floral elements enhance a well-built gin and tonic. As a martini it is best garnished with lemon or grapefruit peel, and is also delicious in savory cocktails.

Our limited release Barrel Reserve is served in our Bees Knees cocktails in the distillery tasting room. A very popular serve! The American oak imparts smooth vanilla flavors that are well-matched to the honey in that cocktail.

Building a beverage brand with a super-premium product begins with the distribution strategy. Ours strategy:

1. Hyper-local market testing - This was spring and summer 2024 for us and involved direct distribution to bars, restaurants and retail on Orcas Island.
2. Local Market Wholesale - We launched with Vehrs Distributing for statewide distribution in Washington in the fall of 2024. It is incredibly rare for a brand to be picked up by a wholesaler in the first year of operations, but Vehrs instantly recognized the product quality and brand potential.
3. Regional Expansion - This is an extension of local market to contiguous states. We expanded to Oregon in July 2025 and are rapidly penetrating the market. California and Idaho are next on this list.
4. Direct-to-Consumer - A very powerful channel if you get it right. We partnered with passionspirits.com in June to test this channel in 40+ states. This is a non-exclusive agreement that allows us to sign with other e-tailers.
5. Virtual Wholesale - Several states a allow for a virtual wholesale arrangement to satisfy the "middle tier" requirement for alcohol distribution. We signed with Liberation Distribution (libdib.com) to get access to licensed bars and retailers in a dozen states, including California, Illinois, New York and Florida.
6. Targeted US and International Markets - We plan to use the funds raised to expand into select high-value markets such as NYC, Atlanta, SF, London, and charter-provisioning sites in the Caribbean.

On the map below we see at a glance that Madrona is available through at least one channel in all but 5 states. Direct-to-home shipment through passionspirits.com is a heigh-leverage channel that can bring the Madrona brand to households in over 40 states! This is a very new relationship that will be a focus of ad spend in 2026.

We expanded into Oregon over the summer of 2025! This extends our direct retail network to all of the licensees in the state. Our full state listing allows us to keep almost 100 cases of product in the state warehouse near Portland, and we already need to refill!

Madrona has been very well received in trade and consumer events. We leverage high quality wearables, accessories and in-store marketing materials to build brand equity.

Tom spent 15 years working in sales and finance at a large regional wholesaler early in his career, so this is a return to a familiar industry. In the interim he earned an MBA at the University of Washington and worked in several online media and fintech startups.

In the 18 months since opening our doors we have focused on product and establishing distribution channels. These channels are still in the very early stages of development, but growth can be greatly accelerated with marketing investment.

Super-Premium Gin is a bright spot in an otherwise volatile market. There is a shift to quality even as overall spirits volume retreats to pre-pandemic trends. A focus on cocktails and quality over quantity have driven continued growth in top shelf brands.

The unit economics in gin production are compelling. The focus for scale is on the Wholesale and eCommerce channels. The key is to take what you can of that margin and feed it into promotions and advertising to build awareness and equity.