Weed Reads: Legal Pot Industry May Face ‘Extinction Event’

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California’s legal pot industry has struggled since it began in 2018. High taxes, burdensome regulations, the refusal of many local governments to issue licenses and the continued dominance of the illicit trade have all kept what should be a large, thriving business from reaching its potential.

The crisis moment might have been delayed by the pandemic, when cannabis was deemed to be an “essential” business and thus continued to operate even when most other businesses were closed during the lockdown. As that was happening, demand for weed grew, thanks in part to a lot of people staying at home with not much to do. That likely allowed many stores to remain open and many growers to keep growing, even as they continued to struggle and even as many of their peers left the business or went back to serving the illicit market.

But now, the industry might be facing an “extinction event,” as some in the industry and the media have put it. That of course overstates things, though not by much. The industry isn’t going to disappear, but it’s already shrinking fast and in danger of becoming much, much smaller and of being dominated by a few big players. Industry consolidation is something many industry advocates started warning about even before voters approved Prop 64 in 2016, which authorized legalization.

The California cannabis industry now faces its greatest challenge. “Perfect storm” is a horrible cliché, but it fits the current circumstance.

First, there isn’t enough money, despite all the dollars consumers spend on legal weed. Retailers have worked with ultra-thin margins and dispensaries have taken on large amounts of debt. That problem became worse this year when the tax law was changed to make retailers responsible for paying the state’s cannabis excise tax which puts a heavy burden on cash-strapped dispensaries.

One report toward the end of last year put the total amount of debt among dispensaries at about $600 million. Whatever the real number is, it has likely ballooned this year already.

The deadline for dispensaries to pay the state’s excise tax was May 1, and more than 13% failed to do so by that date, according to the California Department of Tax and Fee Administration. That represents 265 shops that now face penalties of 50% of what they owe. That could be a “death blow” for many of them, as SFGate recently put it.

Meanwhile, pot growers continue to flee the legal market in droves, thanks again to costs as well as persistently low wholesale prices. The state’s “canopy”—the total acreage devoted to growing weed—shrank by about 23% since January of 2022, according to one analysis. During the same period, 1,766 cultivation licenses went inactive, 845 of them just this year, according to the California Department of Cannabis Control.

As if all this weren’t enough, a pathogen has spread to nearly all of California’s pot plants. The disease, HLVd (hop-latent viroid), doesn’t kill the plant, but it reduces the weight of buds by nearly a third and it reduces THC content, making every plant grown less valuable than it otherwise would be.There are solutions to the pathogen problem, mainly involving testing and removing infected plants. But it’s one more burden for an industry that can’t take any more.

Aptos Vineyard

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Sauvignon Blanc 2022

The summer solstice on June 21 announces that we are officially into summer – and time for a chilled white wine on the lighter side such as Aptos Vineyard’s 2022 Sauvignon Blanc, made by Rob Bergstrom. This delicious wine has aromas of freshly cut grass and citrus fruit – with zesty flavors of grapefruit, lemon, lime, and a smidgeon of passion fruit. Because of its crispness, it makes a perfect before-dinner drink. 

Aptos Vineyard was started in 1974 by the late Judge John Marlo, and is now run by the local Baker family. And good news from the Bakers is that they are opening a tasting room in Aptos Village in the old Armitage Winery space next to Starbucks. They can now be more involved in events – and two coming up are:

Distinct Pinots of the Santa Cruz Mountains – a winemaker dinner involving a dozen wineries to be held 3-8pm on Sunday, June 25 at Regan Vineyards Winery. Tickets are $175.

Aptos Wine Wander – an afternoon of wine tasting in various businesses in Aptos Village to be held 1-4pm on Saturday, July 1. Tickets are $45.

For info and tickets visit Wines of the Santa Cruz Mountains at scmwa.com

Sip for Second Harvest 

Join Second Harvest Food Bank for an afternoon tasting of fine wines, hosted at the beautiful Seascape Golf Club. Eight tasting tickets, appetizers and a commemorative glass included in this worthwhile fundraiser. The event is 1-4pm June 25 at Seascape Golf Club, 610 Clubhouse Drive, Aptos. For tickets and info visit: thefoodbank.org

Summit Wineries

Burrell School is hosting a “happy hour” with Silver Mountain, Wrights Station, and Villa del Monte Winery. The event is 5-8pm on Friday, June 23 at Burrell School Winery. Burrellschool.com

Copal

Copal General Manager Brittany Harrison exudes passion for executive chef Ana’s traditional generational Oaxacan cuisine and the bar program headlined by an extensive mezcal selection. The food and drinks are served in a space splashed with a colorful palette and Oaxacan art, set amidst a big city modern Mexico vibe. 

Chapulines, grasshoppers sautéed with chile and lime, are a classic Oaxacan street food and make for an authentic start to a meal. Other appetizer favorites include Molotes (deep-fried chorizo and potato fritters) and Garnachas (bite-size tostadas filled with rich and flavorful beef). Entrée highlights include four types of moles and Tlayuda, another regional street food specialty, an enormous tostada eaten by hand with Oaxacan cheese and topped with chorizo, tasajo (wagyu steak) and cecina (pork adobo). Dessert options include flan and thinly sliced fried plantains with lechera drizzle. Hours are Wednesday-Sunday from 11:30am-8pm (Fri/Sat until 9pm). GT asked Harrison about the origins of Copal and her love for mezcal.

How did Copal come to be?

BRITTANY HARRISON: It started with the owners Noelle and Stuyvie meeting chef Ana while she featured her family’s recipes at different spots in town in pop-ups, competitions and large parties. Stuyvie grew up in Mexico City and traveled to Oaxaca with Noelle and their daughter often, so they wanted to combine their love of mezcal with her recipes and food to truly honor Oaxacan cuisine in Santa Cruz. Copal is a perfect collaboration of what they love and what she creates.

How did your affinity for mezcal develop? 

I started off as an adult not liking alcohol at all. But through working with the owners and being educated on the origins of mezcal, I grew to realize and appreciate the diversity of flavors and how its history adds to my enjoyment. We have over 250 varieties of mezcal here, and I’m still trying to find my favorite one.

1203 Mission Street, Santa Cruz, 831-201-4418; copalrestaurant.com

Free Will Astrology for the Week of June 21

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ARIES (March 21-April 19): When I was still an up-and-coming horoscope columnist, before I got widely syndicated, I supplemented my income with many other jobs. During one stretch, I wrote fortunes for a line of designer fortune cookies that were covered with gourmet chocolate and sold at the luxury department store Bloomingdale’s. The salary I got paid was meager. Part of my compensation came in the form of hundreds of delicious but non-nutritious cookies. If you are offered a comparable deal in the coming weeks and months, Aries, my advice is to do what I didn’t do but should have done: Ask for what’s truly valuable to you instead of accepting a substitute of marginal worth.

TAURUS (April 20-May 20): My mentor Ann Davies said that of all the signs of the zodiac, you Tauruses are most likely to develop finely honed intuition. At least potentially, you can tune in to the inner teacher better than the rest of us. The still, small voice rises up out of the silence and speaks to you clearly and crisply. Here’s even better news: I believe you are entering a phase when your relationship with this stellar faculty may ripen dramatically. Please take advantage of this subtly fabulous opportunity! Each day for the next 14 days, do a relaxing ritual in which you eagerly invite and welcome the guidance of your deepest inner source.

GEMINI (May 21-June 20): New College in Oxford, UK has educated students since 1379. Among its old buildings is a dining hall that features beams made of thick oak trees. Unfortunately, most oak wood eventually attracts beetles that eat it and weaken it. Fortunately, the 14th-century founders of New College foresaw that problem. They planted an oak grove whose trees were specifically meant to be used to replace the oak beams at New College. Which they are to this day. I would love you to derive inspiration from this story, Gemini. What practical long-term plans might you be wise to formulate in the coming months?

CANCER (June 21-July 22): In the Northern Hemisphere, the astrological month of Cancer begins with the sun in its greatest glory. Our home star is at its highest altitude, shining with maximum brightness. So then why is the sign of the Crab ruled by the moon? Why do the longest days of the year coincide with the ascendancy of the mistress of the night? Ahhh. These are esoteric mysteries beyond the scope of this horoscope. But here’s a hint about what they signify for you personally. One of your assets can also be a liability: your innocent openness to the wonders of life. This quality is at the heart of your beauty but can also, on occasion, make you vulnerable to being overwhelmed. That’s why it’s so important that you master the art of setting boundaries, of honing your focus, of quaffing deeply from a few cups instead of sipping from many cups.

LEO (July 23-Aug. 22): The coming weeks will be a delicate time for your spiritual unfoldment. You are primed to recover lost powers, rediscover key truths you have forgotten, and reunite with parts of your soul you got cut off from. Will these good possibilities come to pass in their fullness? Maybe, maybe not. It depends on how brave you are in seeking your healing. You must ask for what’s hard to ask for. You’ve got to find a way to feel deserving of the beauty and blessings that are available. PS: You ARE deserving. I will be cheering you on, dear Leo.

VIRGO (Aug. 23-Sept. 22): Whether or not you have been enrolled in a learning institution during the past 12 months, I suspect you have been getting a rigorous education. Among the courses you have almost completed are lessons in intimacy, cooperation, collaboration, symbiosis, and togetherness. Have you mastered all the teachings? Probably not. There were too many of them, and they were too voluminous to grasp perfectly and completely. But that’s OK. You have done well. Now you’re ready to graduate, collect your diploma, and apply what you have learned.

LIBRA (Sept. 23-Oct. 22): History has provided contradictory reports about Isabeau of Bavaria, who served as Queen of France from 1385 to 1422. Was she a corrupt, greedy, and indecisive fool who harmed France’s fortunes? Or was she a talented diplomat with great skill in court politics and an effective leader during the many times her husband, King Charles VI, was incapacitated by illness? I bring these facts to your attention, Libra, hoping they will inspire you to refine, adjust, and firm up your own reputation. You can’t totally control how people perceive you, but you do have some power to shape their perceptions—especially these days.

SCORPIO (Oct. 23-Nov. 21): The next four weeks will be an excellent time to create and celebrate your own holidays. I recommend you dream up at least four new festivals, jubilees, anniversaries, and other excuses to party. Eight or more would be even better. They could be quirky and modest, like Do No Housework Day, Take Your Houseplants for a Walk Day, or Write Bad Poetry Day. They could be more profound and impactful, like Forgive Your Parents for Everything Day, Walk on the Wild Side Day, or Stay Home from Work Because You’re Feeling So Good Day. In my astrological opinion, Scorpio, you should regard playful fun as a top priority. For more ideas, go here: tinyurl.com/CreateHolidays . . . tinyurl.com/NouveauHolidays . . . tinyurl.com/InventHolidays

SAGITTARIUS (Nov. 22-Dec. 21): In Greek mythology, Prometheus was a god who stole fire from his fellow gods and gave it to humans to help them build civilization. His divine colleagues were not pleased. Why? Maybe they feared that with the power of fire, people would become like gods themselves and have no further need for gods. Anyway, Sagittarius, I hope you’re in a fire-stealing mood. It’s a good time to raise your whole world up to a higher level—to track down and acquire prizes that will lead to major enhancements. And unlike what happened to Prometheus (the other gods punished him), I think you will get away with your gambits.

CAPRICORN (Dec. 22-Jan. 19): Let’s discuss magical doorways. Each time you sleep, you slip through magical doorways called dreams. Whether or not you recall those adventures, they offer you interesting mysteries utterly unlike the events of your daily life. Here’s another example: A magical doorway opens when an ally or loved one shares intimate knowledge of their inner realms. Becoming absorbed in books, movies, or songs is also a way to glide through a magical doorway. Another is when you discover an aspect of yourself, a corner of your being, that you didn’t know was there. I bring these thoughts to your attention, Capricorn, because I suspect the coming weeks will present an extra inviting array of magical doorways.

AQUARIUS (Jan. 20-Feb. 18): Psychiatrist Myron Hofer specializes in the mother-infant relationship. Among his findings: The first emotion that a newborn experiences is anxiety. Struggling to get out of the womb can be taxing, and it’s shocking to be separated from the warm, nourishing realm that has been home for months. The bad news is that most of us still carry the imprint of this original unease. The good news, Aquarius, is that the coming months will be one of the best times ever for you to heal. For optimal results, place a high priority on getting an abundance of love, support, comfort, and physical touch.

PISCES (Feb. 19-March 20): Curious blends and intriguing juxtapositions are in the works—or at least they should be. Improbable alliances might be desirable because they’re curative. Formulas with seemingly mismatched ingredients might fix a glitch, even if they never succeeded before and won’t again. I encourage you to synergize work and play. Negotiate serious business in casual settings and make yourself at home in a wild frontier.


Homework: Is there any area of your life where you are not giving your best? How could you improve? Newsletter.FreeWillAstrology.com

Biden Fundraising in Silicon Valley

President Joe Biden arrives in Santa Clara County today, where he is to announce a major environmental initiative in the late afternoon and kick off a big Silicon Valley fundraising campaign in the evening.

While Biden is at private fundraisers in Los Gatos and Atherton, Florida Gov. Ron DeSantis will be raising money for his presidential campaign in a private event in nearby Woodside.

The Republican governor spoke at a fundraising brunch at posh Del Paso Country Club in Sacramento this morning. Across town Attorney General Rob Bonta was mulling whether to charge DeSantis with kidnapping for sending two planes of migrants from Texas to the California capital. At midday, Desantis was at a Fresno fundraiser before heading to the Bay Area tonight.

In Nevada on Saturday, DeSantis warned that California’s “leftist government is destroying that state,” and that “leftist governments were destroying cities all over our country.”

Aboard Air Force One, White House spokesperson Karine Jean-Pierre told reporters the President also would mark today’s Juneteenth holiday as a way “to remember history, not erase it,” a not-so-veiled reference to steps being taken in Florida and Texas to downplay or remove Black history and slavery references from state textbooks.

Biden signed legislation two years ago making today a federal holiday, recognizing the June 19,1865 order officially freeing slaves after the end of the Civil War.

Air Force One was touched down at Moffett Field at 3:25pm, followed by an appearance at the Lucy Evans Baylands Nature Interpretive Center and Preserve Monday in Palo Alto where Biden was to announce more than $600 million for climate adaptation projects as part of his “Investing in America” agenda. The President was to be joined by Gov. Gavin Newsom, Rep. Anna Eshoo and local officials.

In Atherton in the evening, Biden will be the guest of venture capitalist and former state controller Steve Westly, then in Los Gatos, a fundraising event will be hosted by LinkedIn co-founder Reid Hoffman, along with Microsoft Chief Technology Officer Kevin Scott, according to Reuters.

On Tuesday, a third fundraising reception will be held for Biden in Marin County by eight tech, climate and private equity entrepreneurs and investors. Newsom is expected to attend that event.

Last week, First Lady Jill Biden was in the area to raise money for the presidential campaign and speak about the need for gun control legislation.

Paddling for Liberation

About 150 people hit the waves Saturday at Cowell’s Beach in the third annual Liberation Paddle Out celebration of Juneteenth.

With the aid of around two dozen skilled surfers and other supporters, the crowd fitted themselves with wetsuits and took a brief surf lesson in the sand. They then scrambled into the Pacific for an afternoon of surfing under sunny skies with one-to-two foot waves. 

Laura Owen, director at Santa Cruz Credit Union, said it was her first time to go surfing.

“It’s very empowering,” she said. I’m always scared to go into the water, but today I’m very excited to be a part of this and to see so many people out doing activities like this,” she said. Owen added that she was proud to be a part of the sponsorship team from Santa Cruz Credit Union.

The event was hosted by Black Surf Santa Cruz whose single goal is to to promote physical and spiritual wellness through surf in the Santa Cruz community. 

Brittany Williams and her daughter, Powell, haul a surfboard out to sea at Cowell’s Beach Sunday during the third annual Liberation Paddle Out in celebration of Juneteenth. PHOTO: Tarmo Hannula

“We are driven by the need and urgency for inclusivity, diversity, and equality,” a statement reads on their website. 

​Juneteenth, declared a federal holiday in the United States by President Joe Biden in 2022, commemorates the emancipation of enslaved African Americans.

Rachel Kippen, board member of Black Surf Santa Cruz, said she was delighted with the turnout.

“People were carrying flowers out into the surf as it got under way,” she said. “It’s a great celebration.”

Watsonville Hospital Nurses Decry Scheduling Changes

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Roughly 100 nurses who work at Watsonville Community Hospital gathered at the intersection of Airport Boulevard and Nielsen Street Wednesday to call attention to a recent scheduling change they say affects the way they do their job.

The nurses were speaking out against a decision by hospital administration—which was approved in 2022 by the Pajaro Valley Healthcare District Board of Directors—that requires all nurses to work full-time, eliminating most part-time positions.

“We are asking the employer to reconsider,” says Annabelle Covington, who has been a nurse in the labor and delivery department for 21 years. “We need to retain and recruit nurses, and in order to do that we need more part-time positions.”

As a result of the decision, Covington says, 42 nurses resigned, leaving the hospital short-staffed and requiring the use of traveling nurses.

“They live here, they wanted to work here, but because they couldn’t have a good work-life balance they decided they couldn’t stay here,” she says.

WCH Interim CEO Matko Vranjes says those numbers are not entirely accurate.

“We actually had 29 benefitted nurses that have left since August 31,” he says. “Of those, 21 were full-time nurses. So only three that were part-time that potentially left for that reason.”

Vranjes also says that the 183 nurses—amounting to 164 full-time equivalent employers—is a larger number than before last year’s transition to being a community-owned hospital.

The reason for the change, he says, was the unsustainable amount of overtime pay the part-time employees were making.

“The previous model wasn’t sustainable,” he says. “You can’t continue to pay higher-than-normal rates for staffing and be successful.”

Still, emergency room nurse Quiché Rubalcava says the “arbitrary, unilateral change” to the schedule occurred without bargaining from the union.

The staffing loss that followed, Rubalcava says, was a “tragedy.”

“Those nurses were committed to the hospital,” he says. “They were on the front lines of Covid, they fought through the bankruptcy, and then they were told that their schedules had to change without any say and without the union,” he says. 

Rubalcava says the hospital’s claim of making the change to save money backfired. He says the existing nurses are working more to fill the shifts left by the part-timers and required bringing in traveling nurses.

ICU nurse Tiyana Shields says the nurses warned the administration of the potential consequences of the scheduling change, which they did not heed.

“We were ignored, and now here we are and it’s getting worse,” she says. “We’re still losing nurses.”

As the California Nurses Association prepares to go to contract negotiations with the hospital in July, the nurses are hoping administrators will restore part-time positions, which Vranjes says is a possibility.

“We’re very hopeful of this being a new day as we’ve entered community ownership, and that we’ll get to a good resolution and make sure the facility is sustainable and stable for a long time to come. and we’ll keep working toward that goal,” he says.

Cabrillo College Releases Potential New Names

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The plan to rename Cabrillo College took a big step toward completion during a community forum at the Cabrillo campus on June 14. 

An audience of over 70 eager participants, mostly seniors, members of the public and Cabrillo faculty, came to hear the result of several years of research and community suggestions.       

Cabrillo president Matt Wetstein revealed the final five potential names chosen by a board-appointed Name Selection Task Force. The task force is comprised of students, alumni, and community members of all ages and ethnic backgrounds.

The announced potential names are:

  • Costa Vista, Spanish for “coast view,” a name that reflects the panoramic view from Cabrillo’s upper campus.
  • Seacliff, the name of a nearby unincorporated community.
  • Aptos, an Ohlone Indian word meaning “the people.” The Aptos people were one of the larger Awaswas tribes.
  • Santa Cruz Coast. “Santa Cruz” is Spanish for “Holy Cross” a name that originated with the Spanish missionaries.
  • Cajastaca, the name of a village of the larger Aptos tribe, meaning “the place of the jack rabbit.”  

Wetstein described in detail the criteria for name consideration. Potential name candidates were to be rooted in Cabrillo’s values or rooted in a geographic touchstone and could not be the name of an individual person. In addition, names needed to meet practical criteria that included exclusivity, availability, and the necessity to have a non-offensive translation into Spanish.

Wetstein also renewed a pledge by the Trustees to cover the expense of changing the name through grants and donations, with no Cabrillo funds to be used to replace signage, legal fees or other costs outside of the normal school budget.

Christina Cuevas, a Cabrillo governing board trustee and chair of the board’s Name Selection Task Force, opened the forum by explaining the years-long process that brought the college to this turning point.

In 2020 an alliance of faculty and students petitioned the Cabrillo Board of Trustees to rename the college, citing Juan Rodriguez Cabrillo’s participation the violent subjugation of the Aztec Indians, exploitation of indigenous people’s labor, and role in the colonization of California.  Later that year the Board created a subcommittee to research Juan Cabrillo and make a recommendation regarding the name change. 

A 60-page report delivered in the fall of 2022 recommended a change. The Trustees ultimately voted their agreement by a vote of 6-1, with the dissenting vote cast in a disagreement over process, not an endorsement of retaining the name Cabrillo.

The subcommittee will hold several more community meetings to hear feedback and discuss the new names with the public. The college’s board of trustees will make the final decision on the new name sometime this summer.

Two more public community forums will be held in coming weeks:

  • 6 p.m. June 28 at the Watsonville Center, Room A-130, 318 Union St., Watsonville.
  • 6 p.m. July 12 at the Felton Library, 6121 Gushee St., Felton
  • Links to two additional forums, online via Zoom, can be found at: cabrillo.edu/governing-board/name-exploration-subcommittee/ in addition to an online form in which to register thoughts and opinions about the offered new names.

Supervisors Approve Budget

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The Santa Cruz County Board of Supervisors on Tuesday unanimously approved the $1.1 billion proposed budget for the 2023-24 fiscal year, including a $731 million General Fund.

While the county’s financial outlook takes into account slowing revenue growth, it funds community priorities such as the South County Government Center on Westridge Drive, a new Children’s Crisis Stabilization Center, design of the Freedom Campus Health Care Center, completion of the Live Oak Library Annex and Aptos Library and the creation of a Master Plan on Aging, says county spokesman Jason Hoppin.

The budget talks this year were underscored by the financial consequences of recent natural disasters. The CZU fires and the storm and the flood damage from the atmospheric river storms in January, February and March have have put the county in what budget manager Marcus Pimentel described as “testing, trying times.”

“When we were in the middle of it in January and February, it was hard to see an end that looked smooth,” Pimentel says. “And yet it got there and I think it’s due to the dedication of people that are putting in 70, 80, 90 hours in a week to make sure they were doing all their dual or triple duties.”

The county is still waiting on $100 million in federal and state reimbursement–$67 million from the former and roughly $50 million from the latter, Pimentel says.  

“We all know that this particular budget cycle has been incredibly challenging,” he says. 

Budget managers nationwide are also girding for an impending recession that financial experts say is all but a certainty. Pimentel predicts a growing deficit that could reach $24.5 million by 2027/28.

Also included in this year’s budget is funding for inmate medical and behavioral health care, and completion of a new DNA laboratory.

Part of the county’s financial troubles stem from the way it collects its taxes.

With a 9% sales tax rate, the unincorporated county collects less revenue than Watsonville and Scotts Valley, which collect 9.75%, and the city of Santa Cruz, which collects 9.25%.

In addition, the County collects just 13 cents out of every property tax dollar, which is lower than most counties. This despite half of County residents living in unincorporated areas, which is a much larger share than other counties.

The county is also facing increasing costs due to inflation, employee retention and retirement costs and increased costs for disaster response due to climate change. All of these are problems that county administrative officer Carlos Palacios says are likely to worsen.

“As we know we live in the second most unaffordable county in the whole country, when you combine bouncing prices to median wages,” he says. 

The approval was the conclusion of a multiple-day hearing beginning in late May that included presentations from every department.

Summoning Spirits

Call it a spiritual breakthrough, though not the type that you’d expect at, say, Santa Cruz Zen Center. 

Suddenly Surf City, a place famed for its waves, mountain bikes and redwoods—but also craft beer and Santa Cruz Mountain wines—is witnessing a distillery surge. 

Collectively Venus Spirits, UBlendIt Inc. and Santa Cruz Spirits are winning shiny international awards, opening new restaurant-bars and developing new products, making right now the most compelling time for local spirits in a long, long while.

Meanwhile a different sort of spiritual awakening is happening with the area’s most time-honored distillery. 

Osocalis can stake a claim to being one of the most carefully crafted and outright uncommon liquors on the planet, and it happens to be distilled in Soquel. Now Osocalis—named for Soquel’s original Native American title—has embarked on a reinvention that will make its unique brandies that much rarer.

Over the course of the pandemic, owner-operators Dan Farber and Jeff Emery decided, in short: Less is more. Rather than pursue any sort of growth model, they pivoted to releasing fewer bottles of bright California brandies to rival Europe’s best Cognacs and Calvados. 

Their exacting attention to detail includes hand planting, growing and tending their own grapes—something no other brandy company in the country can claim—to handpicking and personally aging the oak to mature their spirits, sometimes for decades.

“There’s art in growing, art in winemaking, art in distillation, art in maturation, art in blending, art in packaging,” co-creator Dan Farber says. “Every step of the way you can be artful and careful.” 

When their brand-new label and look debuts later this year, it will appear on only 300 bottles, for the entire country. 

So good luck getting your hands on any, if you do have the cash for it, which is worth noting, as one bottle could easily fetch $1,000. (Price is TBD.) On top of that, all the bottles are pretty much spoken for by elite bars, select restaurants and individual collectors.

The good news there: While Osocalis will prove hard to get, the dynamic liquors from Santa Cruz Spirits, Ublendit and Venus Spirits are a lot easier to acquire.

Here they are, in order from youngest to oldest:

Santa Cruz Spirits

A funny thing happens when Good Times gets to talking liquor with one of Santa Cruz Spirits’ four partners, Paul Locatelli. There’s a lot more discussion of everything but liquor—modeling, sports and sex included.

But eventually the origin story emerges. He describes four friends who enjoy vodka and reasoned, “Why not brand some under the Santa Cruz name?”

“Everyone loves Santa Cruz,” Locatelli says. “We figured if it sells, great. If it doesn’t, we’ll drink it and pass it out. Then it really took.”

Two of those friends are brother Brian and Kevin Dueck, proprietors at Pointside Meat Shop, who carried it first. Flash forward a couple of years and it now appears at 20 local venues listed on its website, including El Palomar, Pleasure Point Liquors and Santa Cruz Warriors Stadium.

Last month it also appeared in a somewhat stunning place: on stage at the 2023 San Francisco World Spirits Competition, arguably the most prestigious liquor tasting showdown in the world, and the oldest and largest of its kind. SCS’s original flagship vodka—they also do grapefruit, lemon, cucumber and mandarin—earned double gold, which means every single judge gave it top grades.

Santa Cruz native Kaia Myall designed the label. “I started by throwing in recognizable icons like the harbor lighthouse, the beach, the fishing boat, the pelican, the shark fin,” she says. “I wanted to make it very Santa Cruz looking.”

The non-liquor talk emerges with mention of “The Real Estate, Sex & Gossip” podcast, which Locatelli—a one-time Versace model—hosts with fourth spirits partner and fellow real estate pro Brian DeDeigo. 

“The podcast is [DeDeigo’s] last attempt to force Paul to divulge all the dirty secrets that he is convinced are being hidden,” the Apple Podcasts Preview reads. “GOSSIP Rule #1: Speak the truth. Rule #2: EVERYTHING is on the table, simply apply Rule #1 before detonation.”

Locatelli’s description of the show seems to work for their approach to vodka too. 

“We don’t give a s***, we want to have fun,” he says. “I know you can’t print that, but you can quote me on that.”

santacruzspiritsco.com

UBlendIt

Another Santa Cruz meteor just landed atop the San Francisco World Spirits Competition.

Hideout Vodka beat out the likes of industry heavies with reputations—and price points—far heftier than their own, including Ciroc, Absolut, Chopin and Stolichnaya.

Hideout retails for as little as $10, compared to twice that for the runners up.

That marks a double win for its parent company UBlendIt of Scotts Valley, because that’s the contract distiller who makes Santa Cruz Spirits vodka too, working with their principals to develop a profile they like. (In Santa Cruz Spirits case, that was filtering and aerating for peak smoothness.)

The two victories speak to UBlendIt’s double-barreled business plan. They do custom brands for a boatload of Santa Cruz area businesses including the Redroom, Britannia Arms and wharf stars Riva’s Fish House and FireFish Grill (reopening this month). That often involves working with their bartenders on unique expressions that work well in what they feature, like Hula’s Silver, Hula’s Gold and Hula’s Dark Rum in Hula’s tiki drinks.

They also do a bunch of their own products. That ranges from Tres Paraguas 100-agave spirits to Westside Water whiskey, an homage to Santa Cruz. Hideout seltzers represent a more recent addition. Canned cocktails are on the docket down the road.

“We build brands,” co-owner and operator John Spagnola says. “We bring people together around great products at a great price.”

They’re able to keep their prices reasonable by outsourcing the base spirit distilling to established producers like Midwest Grain Products, then they tweak it, proofing it down with the best distilled water they can find, applying their own house recipes and occasional barrel aging at their own facility in Skypark.  

That, in turn, has helped land Hideout somewhere perhaps more meaningful than the S.F. International Competition podium, when it comes to profits: the heart of the Las Vegas strip, where it’s now the featured vodka at a phalanx of MGM Properties—a dozen all told, Aria, Bellagio, The Cosmopolitan and Mandalay Bay included.

The star vodka isn’t one of the gargantuan and borderline monopolistic distributors’ brands like Skyy or Absolut, but humble little Hideout.

“It’s an impossible feat,” Spagnola says. “OK, not impossible, because we did it. But to do that out of the gate is incredible.”

ublendit.com

Venus Spirits

There’s a motto that circulates around Venus Spirits: “distillery first.”

With how much else they’ve got going on, attentive souls could be forgiven for calling B.S. 

And they’d have a case to make. Note the new Venus Pie Trap which opened in fall with pizza pies, hand pies, sweet pies, bagels and coffee. Right next door sits one of last year’s most anticipated new restaurants, Venus Beachside, which will reopen next month after an extensive remodel. This week Venus even hosted its own job fair to prepare for full operation.

Then there is the original restaurant, Venus Spirits Cocktails & Kitchen, which does bustling business by way of cod croquettes, fried chicken, market salads and craft cocktails next to the distillery space. And the tasting room on the opposite side, where everything from a flight of mini cocktails to restaurant pop-ups make for a lively social scene all its own.

But a closer look reveals the spirits-centric strategy is real, and applies across multiple dimensions. 

The distillery sits literally at the center of the brand’s headquarters on High Road. Venus’ wholesale gins, aquavits, whiskeys and agave spirits account for a massive chunk of overall revenue, and are poured from Craft & Commerce in San Diego to Humboldt Bay Social Club in Eureka. Dishes like lobster rolls and baked oysters—coming soon to Beachside in Aptos—merit appreciation, but they are designed to complement the adult beverages, not the other way around.

Like General Manager Tulsi Schneider told me when Venus Kitchen reopened fully in 2021, “Everything we have here is to help accentuate the distillery.” 

One tasty update there: tours returned recently, happening 2pm Saturdays and Sundays. 

Tasting room manager Tory Leslie leads them, and observes a difference in how it shapes the tasting experience for guests. (Pro tip: Ask her about one of her off-menu drinks, like the Nordic Summer.)

“Sitting in front of someone going through tasting notes and the way it’s made, I see people retain that and want to learn more,” she says. “That’s one of my favorite parts of the job.”

Another indicator that the liquor is the ultimate kicker is how pioneering Venus proves. Venus earned awards for its botanical gins—namely the lavender-laced #01 and herbal orange-tinted #02—before gins hit a major reawakening nationwide. The “California mezcal” made with hyper drought tolerant agave grown near Davis is among the first of its kind, and is but one of a handful of Golden State distillers doing it. 

Head Distiller Kayla McIntyre encounters a balance in her craft that Farber of Osocalis would appreciate. 

“It is the perfect blend of art and science,” she says. “With just a science background, you might not have the palate or flavor-building skills to make something unique and approachable. You’re crafting something people consume and hopefully makes them happy. 

“There is an artistic touch to that.” 

venusspirits.com

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