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.

There are more than 7,000 varieties of apples, but only about 100 are grown commercially in the U.S. Eight varieties account for 80% of total U.S. production. Red Delicious, Golden Delicious, Granny Smith, McIntosh, Rome Beauty, Jonathan, York and Stayman.

SantaFe Cider ©2006 Email Santa Fe Cider
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55 Encantado Loop Santa Fe, NM 87508
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