South Florida man lost vodka business to Ukraine war — now he’s rebuilding it right here

He went to ‘Moonshine University’ to learn the American process

MIAMI-DADE COUNTY, Fla. – A South Florida businessman is rebuilding his award-winning vodka business that was lost in the Russia-Ukraine war, and he’s doing it in Miami.

Dave Katz said he had to start over, now crafting an American-made vodka that will be distilled locally.

“We will have distillers and bartenders,” he said. “This is a manufacturing facility which whatever we produce here will be sold around the world.”

Historically, craft distilleries are rare for Miami.

“When I started Zyr Vodka 22 years ago, there were not many distilleries in America,” Katz said. “Since then, there are almost 3,000 distilleries and every city has them. Denver has 30, Tampa has 16 in and around Tampa, but Miami hasn’t bought in just yet.”

Katz explained where he got the equipment to get started.

“Friends from Port Chester, New York were closing up shop to go with a contract manufacturing model so we disassembled this in New York and brought it down,” he said.

This is all a result of the conflict between Russia and Ukraine, which turned into an existential business threat.

“Without question this was out of business, wife hysterical in tears,” he said. “February was the invasion but it was bad for six months before that -- the Russian troops on the border of Ukraine -- on Twitter all night, what’s happening, am I out of business?”

It was Katz’s love of ice hockey that initially led him to Russia.

“This is my baby,” he said of Zyr Vodka. “This I make for 21 years, I have a degree in Russian, I am bilingual. I am thinking, ‘what do I do with this?’”

Stores started dumping Russian vodka and then came a big move from President Joe Biden.

“On March 10th, the administration said we ban Russian caviar, vodka, etc.,” he said. “Totally understandable except, oh boy, I am out of business, thinking what will I do as a local 17-year Miami resident with offices in Dadeland and employees here, and designers here. We make our cases here, so you do not want to be me the last 18 months, but like every entrepreneur, I guarantee you have to pivot, you are going to survive somehow.”

Katz decided to go back to school — a distillery school.

“It’s called Moonshine University in Kentucky, which was incredible,” he said. “To understand the American equipment and for contacts like, who do you contact to recreate what was the highest rated vodka from every reviewer in the world -- how do you do that? How do I start over?”

Katz found a distillery in Illinois willing to help get him back up and running.

“So we are back on our feet, sales started about two months ago, back in some great chains like ABC Fine Wine and Spirits, Winn-Dixie and great restaurants like Joe’s Stone Crab and all the Flanigan’s,” he said.

Now the focus is on transforming a series of warehouse units into a cocktail bar and outdoor seating area with an on-site distillery in an industrial area of Miami-Dade near The Falls shopping center.

“Right now, everything is done in Illinois, working closely with Janie’s Farm, Janie’s Mill which worked with us on the blend of winter wheat and rye that we had in the past to match the flavor,” Katz said. “So once this is open, we will have to test to see if we match the quality. Illinois nailed it. It is perfect. This is different equipment, this is also farther. What if when you bring down a blend of winter wheat and rye from the Illinois farm it sprouts on the way and now the taste is off? There are a lot of moving pieces so I would never want to say 100%, but he will ferment and distill the truck of grain, 30,000 pounds of grain, he will ferment and distill it and then he will send the heart of that here, no question. And we will cut it with water and filter the water, because filtering is the key to Vodka to get that clean flavor and smoothness, so we will do that here, we will blend it, and we will bottle it right here, and that should be right here.”

Additionally, plans for a Homestead distillery are also in the works.

“The Homestead one is massive,” said Katz. “We got to make rum, it is Miami, maybe some jackfruit gin, it will be fun once it is approved and up and running.”

“The Economic Development Council of South Miami-Dade (EDC) is proud to acknowledge its instrumental role in the remarkable journey of Dave Katz and his distillery, “Prelude” as highlighted in the upcoming ABC report. Katz’s transition from vodka production in Russia to establishing his business in the United States is a testament to resilience and innovation, especially in the wake of the challenges posed by the Russian invasion of Ukraine.

“Key to Katz’s successful relocation was the EDC’s facilitation of strategic introductions with influential figures in Homestead. This crucial support has enabled Katz to soon launch his second distillery, “Encore,” which promises to bring significant employment opportunities to the South Miami-Dade region. The establishment of “Encore” is a cornerstone in Katz’s business strategy, underpinning the development of his first distillery, “Prelude,” located in “The Falls” area. This initial facility is eagerly anticipated and will mark a significant upgrade to the warehouse district at the Falls, bringing new jobs and economic vitality to the area.

“The EDC is particularly proud that the bottles from “Prelude” will proudly declare that they are “Bottled in Homestead, Made in the USA.” This is a poignant reflection of the collaborative efforts to uphold and promote American manufacturing excellence. Moreover, Dave Katz’s contributions to the EDC’s Advisory Council meetings, sharing insights from his industry, have been invaluable. His experiences and perspectives have greatly enriched our discussions and strategies.

“Looking forward, the EDC remains committed to attracting and assisting more national and global companies like Katz’s distillery to establish their presence in the South Miami-Dade Area. We believe that such endeavors not only contribute to the local economy but also enrich our community’s cultural and business landscape. We are thrilled to welcome Katz’s “Prelude Distillery” and anticipate its success as a harbinger of more international business collaborations in our region.”

Geri Grimes-Lewis, Executive Director of the Economic Development Council of South Miami-Dade

HOMESTEAD DISTILLERY RENDERINGS:

MIAMI-DADE DISTILLERY RENDERINGS:


About the Author

Christina returned to Local 10 in 2019 as a reporter after covering Hurricane Dorian for the station. She is an Edward R. Murrow Award-winning journalist and previously earned an Emmy Award while at WPLG for her investigative consumer protection segment "Call Christina."

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