1 of 5
Kelly Railean
Mrs. Kelly Railean, Founder, President and Master Distiller of Railean Distillery in San Leon, Texas, USA.For more information, please visit her website at http://www.railean.com/2 of 5
Rum Runner Press, Inc.
3 of 5
Rum Runner Press, Inc.
4 of 5
Rum Runner Press, Inc.
5 of 5
Rum Runner Press, Inc.
I am happy to bring you this interview with Mrs. Kelly Railean, Founder, President and Master Distiller of Railean Distillery, a company located in San Leon, Texas, USA.
Kelly is not only passionate about the art of distillation, she is also wholeheartedly devoted to ensuring her products are worthy of the “American Made” certification.
I recently had the pleasure of sitting down with her to learn more about her background, passion and vision for the future.
-Margaret Ayala, Publisher
Interview with Mrs. Kelly Railean:
Q: How did you get started in the rum industry?
A: In 1997 I star ted working for a large wine & spirits distributor. I sold wine for nearly 11 years and I am also a Level I Wine Sommelier. I learned to sail about the same time I star ted selling wine, and a couple years later I bought a sailboat… and well, sailors are really into rum & pirates! I had always drunk a little bit of rum, but I really started learning about it and collecting it once we started sailing. We would sail our boat to the Buccaneer Bar in San Leon. We would sample different and new rums (they had a wine and beer license so you could bring in a bottle of spirits and purchase “set-ups”). One day at the Buccaneer, I tried a rum that I really did not care for, the rum was so bad (in my opinion) that I started joking with our friends that “I could make better rum”. That was in 2005, and the rest….is history! I started building our distillery just a few blocks from the Buccaneer Bar and I have had product on the shelves of retail stores since 2007.
Q: What products do you currently produce?
A: RAILEAN White Rum: distilled multiple times to produce a pure, smooth spirit. It is crisp, c lean, refreshing and absolutely perfect for making tropical drinks such as Mojitos, Rum Punch, and Daiquiris. It possesses an exceptionally dry taste and immediately comes alive on the palate with subtle notes of vanilla, sugar cookie, citrus and spice. The finish is smooth, clean and flavorful.
RAILEAN Spiced Rum: aged in small, new, double-charred, American oak barrels with a prprietary blend of spices and natural flavors. It is aged to perfection making it smooth, yet flavorful and perfect when mixed with cola. The nose is sweet and spicy with vanilla bean, toffee, honey and nutmeg. The palate is of good body with notes of molasses and spice, and a hint of butterscotch. The finish is medium with spice and sweetness.
RAILEAN Reserve XO Dark Rum: aged in small, new, double charred, American oak barrels. It is aged to perfection making it smooth, yet flavorful and perfect for a premium Cuba Libre. The Reserve XO has fabulous aromas of chocolate, spice and oak. It is soft and well - rounded and as it opens up, it reveals an array of chocolate, caramel and toasted walnut notes. The finish is smooth, warm and relaxing.
RAILEAN Small Cask Aged Rum: a “single barrel ” rum and it has twice the age of the Reserve XO. It is aged in small, new, double charred, American oak barrels, just like the Reserve XO, but for the Small Cask we hand select each barrel and then filter and bottle one barrel at a time. The Small Cask Reserve is rich & sophisticated with notes of oak, leather, and mocha. The first sip reveals toasted sugar notes, with hints of dark caramel and chocolate following close behind. The finish is long and full bodied with a delicious earthy and woodsy quality. This rum is perfect for sipping on the rocks, or with just a splash of water or cola.
Q: Is there something unique about your distillery and/or your products?
A: My products are handcrafted (seriously, I make the stuff ) and I am one of just a few women distillers in the country. I actually ferment and distill everything, I am not just purchasing rum and rectifying my products. Most importantly, my products are “Certified Made in USA”. Railean is the first (and currently only) rum to be certified “Made in USA”. To obtain this certification I had to submit to a rigorous third party audit to verify that my products were indeed manufactured in the USA, with domestic raw materials, and my products must even be packaged in bottles made here in the United States.
Q: I understand that you use small barrels in your distillery for aging. What size barrels are you using and why? Do they play a key role in particular characteristics that make your rum(s) unique?
A: I use 15 gallon barrels. I purchase them new and they are heavily charred. Couple reasons for using 15 gallon barrels…. faster aging (more surface area of wood to volume of spirit) and I can maneuver them myself ! I definitely get more color and flavor out of my barrels in a shorter period of time and I think the key to my Reserve XO and Small Cask rum is the fact that I am using new barrels, not used whiskey or bourbon barrels. I do re-use my barrels, a small portion of my Reserve XO is aged in 2nd use barrels, my Spiced Rum is aged in my 2nd and 3rd use barrels and my Blue Agave Reposado is aged in my 3rd, 4th and maybe even 5th use barrels. I am toying with the idea of aging some of my white rum, so I will be keeping my used barrels to experiment with that.
Q: Do you have any plans for developing additional rums in the near future?
A: Yes, I am going to start working on an aged white rum and maybe some specialty small batch aged rums. Right now my flagship Small Cask Rum (which is a single barrel rum) is aged in new barrels for up to three years. I want to play around with a high-end aged rum using some of my used barrels and then age the product for a much longer period of time. Since I am using new, small barrels, I really cannot age my Small Cask for more than 3 years because it tends to become over oaked.
Q: I have noticed that you have changed the look of your labels on your bottles, what made you decide to change them? Is this due to marketing demands, eye appeal, etc…?
A: We wanted to upgrade our packaging a little bit. Also, we went to an American Made bottle in order to receive our “Made in USA” certification. Some folks in the market and industry had told us our name was a little hard to read on the old label since it was written vertically as opposed to horizontally. We took the constructive criticism and came up with a fantastic package and label. We added a few nice touches like the silver and gold foil, and our Small Cask Rum and both Blue Agave products are now packaged in a heavy, high-end style bottle.
Q: What have been some of the greatest challenges/obstacles you have encountered thus far?
A: Outdated Texas liquor laws, crazy regulations, and taxes! Here in Texas we cannot sell our product to ANYONE other than a licensed distributor. We do tours and tastings at the distillery and most folks want to buy a bottle to take home with them. Unfortunately, it is against the law for me to sell my own product! Another challenge for us (and any other rum made in the USA or made in a country other than Puer to Rico and the USVI) is the tax subsidies and disadvantage in pricing that we have once our products hits the shelves. Spirits manufacturers must pay a Federal Excise tax (about $13.50 per proof gallon). Rum manufacturers in Puerto Rico and the US Virgin Islands also pay these excise taxes, but then receive the funds back in the form of a rebate. Rum makers in the USA and other countries do not have the luxury of this rebate program. In addition to the Federal Excise tax issues, rum companies in Puerto Rico and USVI have also received generous tax subsidies from our Federal Government to the tune of billions of dollars over the years. Puerto Rico and USVI rum makers have an unfair price advantage over all other rums in the USA and elsewhere. To try and combat these unfair trade practices, I have just recently founded the American Rum Association. Currently we have 15 members. For the first time in history, the American rum industry will have a unified voice for media, politics and regulatory agencies. The American rum industry will have a cohesive marketing strategy for American rum that will differentiate it from imported brands and we plan on defining the quality standards for “American Rum”.
Q: Could you describe to our readers your everyday activities? In other words, how much time do you dedicate to product development , research, marketing, etc.?
A: I work at the distillery making and bottling rum, and working on new products and recipes, usually 5 or 6 days a week for 4 - 6 hours per day. A couple of days a week I might have a helper (or two) to assist with bottling and overall production. The majority of my time is spent actually making my rums. I spend a few hours a day on marketing and working in the market….things like seeing accounts, giving staff seminars, speaking at events and conducting rum dinners. The weekends are the toughest, I sometimes have 50 or more people at the distillery on a Saturday for tours and tastings, and then I typically have events and tastings that I sponsor on Fridays, Saturdays and Sundays. Most evenings I spend a couple of hours doing paperwork and reporting that is required by different government agencies. Keeping up with government regulations and reporting is quite time consuming and must be done on a monthly and bi-weekly basis for both the Federal and State governments. In addition to the work I do, I also have a VP of Sales that deals with our distributors here in Texas and other states. Erik Bauer takes care of pricing, inventory issues, meets with distributors and works with chain accounts to promote Railean products. Erik also helps out at the rummery and represents Railean Rums for tastings, seminars and other events.
Q: Have you seen any changes in consumer palates over the years? Have you had to adjust your rum lineup to keep up with changing patterns in the market, or has your target market remained unchanged over the years?
A: I think palates are becoming more refined and rum consumers are becoming more sophisticated. I watch the market trends, but I am careful not to chase the trends. My spiced rum is the perfect example. For the past couple of years, individuals, retailers and even some distributors were asking me about making a Texas Spiced Rum. I initially resisted. I really did not want to make some stickysweet spiced rum that was really nothing more than a white rum with color, flavor and sugar added to it! What I did want to make (and did end up making) was a handcrafted spiced rum that is oak barrel aged with only natural spices and pure cane syrup added to the product. As far as our target market, I believe it is growing. The distillery is located near Galveston Island, we are a waterfront community and one of the largest boating centers in the country. Years ago, our target market was mostly the “salty dog” sailors. Today, I see folks that once only drank Bourbon or Whiskey are now trying aged rum and younger consumers are also becoming interested in rum.
Q: Have you seen a change in how consumers perceive rum since your involvement in the industry?
A: Years ago when I first started drinking rum I would typically drink aged rum, while most of my friends were drinking white rum in fruity drinks (not that there is anything wrong with that!). People used to associate rum as something to drink while on vacation at a tropical location, a bright and fruity drink with an umbrella in it! When I first started making rum in 2007, the demand was higher for my white rum than my aged rum. We are seeing a shift in demand as sales for our aged rums have steadily increased. These days, more and more folks are looking for a sipping style rum, something to drink on the rocks and a rum that is rich and full bodied. I think more and more consumers are realizing that there are fine, handcrafted, small production sipping style rums available to them and that rum really can be something more than just a mixer for colas and frozen drinks.
Q: Do you have any advice for anyone who is considering starting his/her own distillery in the USA?
A: It is a lot of work! It can be a very dirty job, there is a lot of manual labor involved and be ready to deal with a ton of red tape, reporting and regulations. I encounter people all the time that think liquor companies are just rolling in the dough. That is really not the case with small distilleries. Spirits manufacturing is labor intensive and expensive, while profit margin per bottle tends to below. Bottom line….you have to sell a lot of cases to just break even, let alone make a profit. I started the distillery because I am really passionate about rum and spirits, not because I thought “Gee I’m going to make millions of dollars”. Also, really consider the state where you plan to build your distillery; some states have very strict laws concerning spirits manufacturing. I talk to folks all the time who would like to start a distillery and they are so focused on making the product, the equipment and the facility…. and that is really the least of your worries! The real tough part of this business is getting your product to market, convincing the consumer to try your product and dealing with the headaches of the distribution model for spirits here in the United States.
Q: I understand you offer tours of your facility, can you tell us a little bit more about it .
A: I do tours by appointment at the distillery. Tours are $5 per person, it will take about an hour, you must be 21 years or older to participate and you will get a chance to try all the rums I make. I typically do tours Monday-Saturday usually between the hours of 10 AM and 2 PM (depending on our schedule of events).
Q: If people want to contact you or want to know how to get a hold of your rums, how may they reach you?
A: www.railean.com, krailean@railean.com, ebauer@railean.com or 713-545-2742.
Q: Is there a particular message or comment you would like to share with our readers?
A: Rum is the Original American Spirit™, dating back to the American Revolution. Over taxation, government regulation and finally Prohibition destroyed the American rum industry. Now in a market dominated by mass produced imports, against all odds, and with grassroots support….RAILEAN is restoring American Rum™. A new revolution of rum making is taking place in America!