Like a bottle of spirits stashed away for a special occasion, so is Iroquois Falls’ Ed Pedskalny’s plan for a distillery.
On the outside, it seems a simple plan. The development of a neutral grain spirits distillery that would produce whiskey and vodka from the barley raised by local farmers. He says the distillery could generate revenue of about $1.3 million after the third year and then $1.9 million per year after about the tenth year.
According to a $51,000-feasibility study, all he needs is about $10 million - $8.25 million in initial investment without the construction of a building, or more if they want to build a new facility.
“Right now, it’s beyond my capabilities to fund so we’re going to try and raise some money,” says a rushed Pedskalny, owner and operator of Ed Pedskalny Automotive Supplies. He is a busy person with customers waiting, and since the phone line he is on is the same one he uses for his Interac, he is eager to be off the phone.
There is only one small fly in the ointment that has temporarily put the brakes on his plan.
“Right now, the Town of Iroquois Falls is supporting this (Superior Thermowood) wood treatment plant,” says an undaunted Pedskalny. “We’re just going to sit tight until next year. Right now, if both try to go, both will fail.
“We do know the plan is feasible and it will make a profit, but we have to raise some shareholder money,” he adds. “I’m going to be starting in the winter to get people out raising money. I’ve got some friends in the mining business and they claim they can find us some money.”
Town of Iroquois Falls Mayor Ken Graham says it was his understanding the feasibility of the plan was more in question. Currently, the Thermowood project shows promise for the creation of the most jobs.
“They’re still working on their business proposition, doing a market study to figure out where the market is, where the wood’s going to go. It will be all sorted out soon,” Graham says.
Pedskalny says the fact his distillery will only create a few local jobs is one of the reasons the project will not be receiving any government financial assistance, which necessitates the need to raise private funding.
“It’s not a labour-intensive thing,” he says. “Most of your product is sitting around in barrels aging. You don’t want 20, 30 or 40 people sitting around watching barrels of product aging...there will actually be only two or three local people we will have to hire including a forklift operator and a bookkeeper. The others are skilled labour that will likely have to be brought in or specially trained.”
Pedskalny has been touting the benefits of such plant since 2000 when he first began encouraging farmers to start growing barley and oats. It is from the agricultural side that much of the community benefit will be derived.
The distillery will initially require about 500 tons of barley at a price of about $200 per ton, he says. There is the potential to eventually reach 5,000 tons of barley.
“That would require a half a township, six miles by six miles, every inch planted with to barley production,” he says. “Two years ago, we went out on speculation and bought $7,000 of barley and everyone who grew it for us was able to get rid of it.”
Pedskalny says the barley was in high demand because barley grown in southern Ontario is often grown in close proximity to corn. Contamination of the barley by pollen from the corn renders it useless for brewing. Barley grown near Iroquois Falls is free of this contamination and so is perfect for brewing.
“We will put enough farmers back to work that the economy will boom,” Pedskalny predicts.
