Tuesday, June 20, 2006
SF Owner Plans to Expand Thriving Apple
Cider Business
By Kiera Hay Journal Staff Writer
Reprinted from the Albuquerque Journal North
Talk to Santa Fe Cider Company owner Paul Laur for any length of time,
and sooner or later the subject of apples is bound to come up.
Laur can delve into the history of the crispy fruit with gusto, chatting
away about how some of the oldest apple orchards in the United States
were planted in New Mexico by Spanish settlers during the 1600s.
He also knows all about how apples came to Spain with the Moors, as
well as how the Spanish developed a cider-making tradition.
"The migration of apples and variety of apples is kind of a unique
story that most of the country is not aware of," Laur says.
Besides being entertaining, Laur's apple tales serve an important
purpose. They're part of the strategy Laur uses to market his small
company, which supplies organic, non-alcoholic, sparkling cider to
several stores and restaurants around New Mexico and surrounding states.
"To create a brand, it's important to have stories that go with
it," he said.
Learning the trade
Laur's personal history makes for a pretty good story itself.
A boat captain for several years, he moved to Santa Fe in 1992 to
attend the Graduate Institute at St. John's College. While earning
his master's degree in liberal arts, he spent six months of every year
at sea to support himself.
After graduating in 1995, Laur moved to the Caribbean, where he was
director of operations for a rum company in Anguilla from 1996-1999.
It was there that Laur said he first learned the basics of bottle production
and marketing.
Laur moved back to Santa Fe in 1999 when he and his wife, Ruth, started
their family.
He teamed up with Harvey Frauenglass, an Embudo apple-grower who sold
home-made cider at the Farmer's Market in Santa Fe, and created a cider,
which he began selling at local area markets.
In 2003, operating on a "shoestring budget" comprised of
savings and a few loans, the Laurs launched the current version of
Santa Fe Sparkling Cider.
"That's when I really consider us being in business," he
said.
Early customers were Kaune's, the Albertsons at DeVargas Center and
Whole Foods. The latter remains Santa Fe Cider's biggest account.
Changes coming
Currently, the company's staff is
composed of Laur and one full-time sales representative. Both work
out of Laur's home in Eldorado.
The cider is brewed and bottled at the Sierra Blanca Brewery in Carrizozo,
although that's scheduled to change soon. In September, Santa Fe Cider,
along with Sierra Blanca, Isotope Brewing Co. and Rio Grande Brewing
Co., will move operations to a new facility in Moriarty.
Laur's cider is bottled in two sizes, with a champagne-like container
retailing for about $6.99 and a beer-size bottle going for $2.49. Laur
said he hopes to have lemon and cherry ciders available by the end
of the summer and an alcoholic "hard" cider in stores by
Christmas.
"The ciders are designed for adults. They're not sweet, sugary
drinks. It appeals to adults," he said.
Laur said keeping his cider organic contributes to its higher cost
but added that people seem willing to pay a little more for natural
ingredients and a pretty package.
"It's more about the romance of the brand, the authenticity of
it, whether or not you trust it," he said. The philosophy appears
successful.
Santa Fe Cider is sold in stores across New Mexico, as
well as Kansas, Texas, Colorado and Louisiana.
Laur said the company's sales grew by 300 percent last year and are
on track to do the same this year.
He added that May was his most profitable month since starting the
business, even though "cider season" is during the fall.
Supporting area growers
Laur buys the apples for his cider from small growers in
areas such as Taos, the Española Valley, Silver City and Corrales.
He said the granite-rich soil that exists in some of the state's mountainous
areas is rich fodder for the fruit. The high altitude is also a beneficial
factor, as are cold nights and hot days which stress the apple trees,
forcing them to put more energy into producing their fruit.
"I kind of think of this area as the Napa Valley for apple growing," he
said.
Despite New Mexico's flavorful apples, Santa Fe Cider buys most of
its stock from orchards in Colorado. The reason is that Laur hasn't
found enough certified organic apple growers in the Land of Enchantment
to satisfy his company's needs.
Laur said he's still looking for more New Mexican growers, and his
goal is to eventually buy all his apples from New Mexican orchards.
"I very much want to change that (buying apples in Colorado),
so we have all our apples coming out of New Mexico," he said.
The company's goals for the immediate future are to expand
into the California market, as well as possibly open a tasting room
in Santa Fe.
Laur has been trying to raise capital to fund the expansion, but said
it's been difficult because Santa Fe Cider is no longer a start-up,
but not nearly big enough to interest most traditional venture capital
firms.
"We need operation capital to go out and sell more and create
a market," he said.
Still, with a little luck, Laur said he believes his little company
will continue its explosive growth.
"We're doing incredibly well," he said.
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