By GUY C. DENECHAUD

The Northeast Kingdom's loss is Windsor's gain as Vermont Spirits prepares to break ground for a building that will soon house a unique micro-distillery to produce its line of artisanal vodkas.

Headquartered in St. Johnsbury, VT since 1998, Vermont Spirits has attracted a good deal of attention for its unique and upscale alcoholic beverages that are based on natural Vermont products, particularly maple syrup.

The use of maple syrup is a switch from more traditional vodkas, which usually are made from potatoes, rye or wheat.

Micro-distilleries, which manufacture and sell premium distilled beverages, have established a market niche in parts of the country in recent years, but account for only a small but growing portion of an American spirits market that is estimated to be in excess of $45 billion.

Vermont Spirits vodka, distilled using either maple syrup or milk sugars, retails for $28 to $40 and has proven to have an upscale market appeal.

The new 5,100-square-foot building in Windsor will be about 50 percent larger than the St. Johnsbury building, and will be located next to the Harpoon Brewery in Windsor.

Steven Johnson, president and chief executive officer of Vermont Spirits, said the company applied for state approval through the Act 250 land-use process this summer.

Founded by Duncan Holaday as Duncan's Spirits in 1998, the small Vermont company has attracted a good deal of attention over the last five years. The Wall Street Journal and the New York Times featured stories on the micro-distillery in 2004 and 2005 respectively; other coverage has been included in Wine Enthusiasts, Wine & Spirits and the Philadelphia Inquirer. Holaday retired last year and works for the firm as a consultant.

As of 2009, the company's vodkas, which utilize only premium “early-run” sap with production of fewer than 1,000 375-mililiter bottles annually, is sold through Vermont liquor outlets throughout the state, as well as stores in Massachusetts, Connecticut, Rhode Island and metropolitan New York. It also is available at about one-third of the state liquor stores in New Hampshire.

“After closing our facility in St. Johnsbury, all of our products will be manufactured in Windsor,” said Johnson. Johnson expects the Windsor facility will be completed within about eight to 10 weeks of the groundbreaking. ?