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| Left to right: Winston C. Edwards, Chip Tate, Patrick Donehue, and Noell Michaels enjoying Balcones Vth Anniversary Crooked Bourbon at LeDu's in New York in better days. |
The whisky blogosphere is abuzz with the news that a restraining order has been passed against Chip Tate, master distiller of Balcones, to keep him out of the new 65,000 square food distillery Tate was building in downtown Waco.
Mark Gillespie posted the news on WhiskyCast: http://whiskycast.com/management-standoff-reported-at-balcones/
Chuck Cowdery broke the news on Facebook. And Clay Risen's Mash Notes put up a blog post too: http://themashnotes.com/balcones-bust/
All of these notices are based on a piece by Tommy Witherspoon in the Waco Tribune, with colorful details taken out a court document, like Chip apparently wishing he had put a couple of caps into board chief Greg Allen: "'I should have put two in his chest,” referring to shooting Allen after their conversations about Tate’s actions"... A reason why is hinted at in this passage from the Waco Trib piece:“Also in connection to the parties’ disputes, Tate has made statements pointing out how the distillery is full of combustible items and how easy it would be for the distillery to be destroyed by a fire and that it would be better for it to be destroyed than for anyone other than him to run it,” the petition states."
http://www.wacotrib.com/news/business/management-quarrel-threatens-waco-s-popular-balcones-whisky-distillery/article_73ad1ba7-f23a-51f4-8592-afb993e0a001.html
The latter threat strongly implies that Chip was angry that Greg Allen threatened to get rid of him at the helm of Balcones and replace him. Balcones is Chip Tate's life's work. The details of the argument may yet come out. All we have so far is what the Waco Trib scraped from the court documents - and they only tell the board's side. Those are some very strong words, but as Clay Risen wrote yesterday:
"’ll say this: No one who has met him should be surprised that he would say such things, but equally so, no one would expect them to be anything but words. Some people are very passionate about what they do, and they don’t hold back when something gets in the way of their work. Tate is one of those guys."
"’ll say this: No one who has met him should be surprised that he would say such things, but equally so, no one would expect them to be anything but words. Some people are very passionate about what they do, and they don’t hold back when something gets in the way of their work. Tate is one of those guys."
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| Mike Rockafellow |
Who is Greg Allen? Greg Scott Allen is the former CEO of Advance Foods of Enid Oklahoma - which merged with Pierre Foods in 2010 to form AdvancePierre under new CEO William Toler. Advance Foods was originally started by Greg's father, Paul Allen. His partner in the business was David L. McLaughlin. According to this 2005 article:
So Greg Allen, Mark Allen, Paul Allen, and Rob McLaughlin were bought out of their large food processing company and found themselves with capital and spare time. They picked up Chip Tate's Balcones distillery expansion project - an excellent opportunity. It appears, however that they are trying to manage Chip Tate like an employee. Anyone who knows Chip knows that he's an impresario of spirits production. He's a perfectionist and an artist: a rare genius prodigy in the field of American whiskey. He clearly cannot be governed in the usual business way and it's a mistake to try.
Other people involved in the project mentioned in the Balcones' press release announcing the ground breaking of the new distillery (and one other - not mentioned - as found on Linkedin are:)
Keith Bellenger - Chief Operating Officer Balcones
Noell Michaels - Charlottesville VA, formerly of Bold Rock Hard Cider, Hawker Beechcraft Corporation,
The Maple Ridge Group
and
Patrick Donehue Oklahoma city Tax Director First United Bank
On Chuck Cowdery's FaceBook post the reaction from the Craft distilling world and whiskey enthusiasts was predictably pro-Chip. Jackie Summers, the creator of the hibiscus and spice tincture Sorel opened the comments simply with "NO CHIP = NO BALCONES."
On Chuck Cowdery's FaceBook post the reaction from the Craft distilling world and whiskey enthusiasts was predictably pro-Chip. Jackie Summers, the creator of the hibiscus and spice tincture Sorel opened the comments simply with "NO CHIP = NO BALCONES."
Dozens of others said similar things. Late in the evening I amplified, writing: "I, too, stand with Chip. Chip is the heart and soul of not just Balcones but everything that is right about Craft distilling. No one sweats every detail and works so hard to produce fine art in the mash, barrel, bottle and glass. I know Chip bent over backwards to arrange a deal where it was clear, up front, that things would be done HIS way. The investors need to get out of the way and let him lead. I told Noell Michaels and Pat Donahue as much last time I saw them. Get on board and let the Chip express run free. That's the only way the investors will reap their reward. Did the Pope lock Michelangelo out of the Sistine Chapel when the ceiling was half finished? Chip is making art. Let the Artist create!
...sorry if I'm over the top... I've been drinking excellent whisky tonight and the news is devastating. I've been counting on this project to bring sweet Balcones juice to my cabinet and America's. This isn't just about my pining desire for Rumble Cask Reserve, Brimstone, True Blue, and Texas Single Malt... but also about America's need to drink this true Texas nectar. This is about patriotism, Goddamnit!"
I remember when Chip was setting up the deal with the investors. We had a couple of phone conversations. Chip was very careful and didn't say much, but he emphasized that he was looking for a group who would let him lead the project with minimal interference. Chip intensely valued his independence and ability to operate Balcones his way. But, like other small businesses gripped with sudden success, he lacked the capital to adequately grow. This is particularly true in whisky distilling because the capital needs of building a new distillery are so steep and the time to recoup so long. Clearly there's been a breakdown in communication here and that's a shame. I know this is a situation that Chip feared even before the deal was struck.
Chip talked personally with me about trying to find the "right group" of investors who wouldn't try to take over the company or push him into doing things in a way that he didn't think was best. Somewhere in this mess there was a difference of opinion about how Balcones was to be set up and Chip's worst fear was realized. Then his angry reaction ended up in court papers. I KNOW this didn't stem from a lack of clarity on Chips part going in.
Chip Tate isn't just a distiller. He's a genius who builds his own stills, develops completely new mash bills and ground breaking unique products. As I once wrote: Chip Tate is a "Mad Geeky Genius".
No matter what the actual details of the legal proceeding and arguments actually are, it's crystal clear that Chip Tate is the heart and essence of Balcones and the investors would do well to put aside their pride and understand that Chip Tate, like Michaelangelo is a great artist that needs latitude. Posterity will not remember Tate's business meeting attendance even if he has been hotheaded and tempermental. It will remember whether America's top Craft whiskey's expansion project succeeds or fails. This needs to get resolved and they need to patch it up with Chip because the project can't be done right by anyone else.
Previous articles about Chip Tate and Balcones whiskies on The Coopered Tot:
Chip Tate's Mad Geeky Genius http://www.cooperedtot.com/2012/09/chip-tate-mad-geeky-genius.html
The Illuminating and Unsung Batch Evolution of Balcones Texas Single Malt http://www.cooperedtot.com/2013/09/the-illuminating-and-unsung-batch.html
Tasting special unreleased casks of Balcones with Chip Tate and AllisonPatel at The Brandy Library http://www.cooperedtot.com/2012/07/tasting-special-unreleased-casks-of.html
Balcones True Blue - a floral citrus blue corn eau-de-vie with kicking dusty Texas terroir. http://www.cooperedtot.com/2012/05/balcones-true-blue-floral-citrus-blue.html
Smoked Whisky: Balcones Brimstone and Corsair Triple Smoke http://www.cooperedtot.com/2012/03/smoked-whisky.html
Rumble Cask Reserve is a delicious rarity that defies categorization http://www.cooperedtot.com/2012/07/rumble-cask-reserve-is-delicious-rarity.html
Chip Tate's Mad Geeky Genius http://www.cooperedtot.com/2012/09/chip-tate-mad-geeky-genius.html
The Illuminating and Unsung Batch Evolution of Balcones Texas Single Malt http://www.cooperedtot.com/2013/09/the-illuminating-and-unsung-batch.html
Tasting special unreleased casks of Balcones with Chip Tate and AllisonPatel at The Brandy Library http://www.cooperedtot.com/2012/07/tasting-special-unreleased-casks-of.html
Balcones True Blue - a floral citrus blue corn eau-de-vie with kicking dusty Texas terroir. http://www.cooperedtot.com/2012/05/balcones-true-blue-floral-citrus-blue.html
Smoked Whisky: Balcones Brimstone and Corsair Triple Smoke http://www.cooperedtot.com/2012/03/smoked-whisky.html
Rumble Cask Reserve is a delicious rarity that defies categorization http://www.cooperedtot.com/2012/07/rumble-cask-reserve-is-delicious-rarity.html