Andong Soju (2)
The spring semester at the UC Davis campus was buzzing with energy. Students gathered in small groups across the lawns, and the athletic fields were noisy with the sounds of students playing basketball.
I settled into a study lounge on the second floor of the department building with Armando, Jacob, and Chloe. The walls were made of transparent glass, leaving the interior fully exposed unless the blinds were drawn.
This was a space primarily used by students for group projects, fully equipped with long tables, whiteboards, and power outlets. Most importantly, the area was quiet, making it perfect for deep conversations.
"Are you really okay with just a sandwich?"
Chloe asked as she took out the sandwiches she had bought, and I winced.
"Ah... the food here is terrible."
"Shouldn't you be used to American food by now?"
"No, I don't want to. Eating is one of the few pleasures in my life, and I'd rather just make do with a sandwich than eat something that tastes bad. Even the steak at the school cafeteria is awful."
As I grumbled and tore into my sandwich, Armando nodded in agreement.
"It's a fact that American food isn't great. Except for hamburgers and pizza, that is."
Jacob chimed in.
"That's the soul food of Americans, man."
"That's exactly why we acknowledge it."
I finished my sandwich quickly, stood in front of the whiteboard, and picked up a marker.
"Alright, let's get down to business."
"Feels like we're in class," Chloe chuckled.
"You and Armando can do whatever you want. But this is a matter that concerns Jacob's entire life."
Jacob shrugged, though he couldn't hide his nervous expression.
"Right. If it's boring, just study."
"Forget it. I'll just listen."
"Me too."
As Chloe and Armando focused, I wrote a title in large letters on the whiteboard.
[Draft Business Plan]
"Now, if you're going to establish a new rice distillery in California, you need to clearly understand the sequence. You can't just do it haphazardly. It goes: Administration/Permits – Capital – Facilities – Production. A business plan is essential among these. Why is it needed? Because you need a business plan for the USDA Value-Added Producer Grant (VAPG), SBA loans, attracting investors, and getting permits."
"What's a USDA Value-Added Producer Grant?" Chloe, who had been watching quietly, asked.
"It's a grant program operated by the USDA Rural Development. It supports farmers who want to create new markets by processing or branding their agricultural products instead of just selling them as raw materials."
"Ah! That's perfect for Jacob, who wants to process rice into distilled spirits. Then what's the SBA?"
"It's a system where the U.S. Small Business Administration (SBA) guarantees bank loans."
"Ah... how do you know all that?"
"...I just do. Anyway, everything starts with the business plan. In a way, the core of the business plan is securing raw materials and production planning, and this part is very advantageous since we're already farming. The type of alcohol to be made is already decided, the facility scale will be small, and the next important things are initial investment costs and branding strategy."
After explaining this much, I looked at Jacob.
"Once you start, there's no turning back. Especially after you take out a loan, you have to go through with it. Are you confident?"
"Yeah. I'm confident. Since you have a stake in it, you're going to help me as much as you can, right?"
We had set a 30-year term for the strategic business partnership contract to help the farm, but since this was about creating a distillery business, I had decided to take a 30% stake.
"That goes without saying."
"Then there's no reason not to be confident."
Jacob shot me a look filled with firm determination.
"Good. The most important thing here is the design drawings and layout submitted to get permits before installing the equipment. It doesn't have to be professional architectural blueprints, but it must be a floor sketch where dimensions and zones are clearly visible. Only when this is perfectly set can you receive the federal TTB DSP (Distilled Spirits Plant Permit)."
"I can't do this alone, so I'll have to ask someone, right?"
"I think so too. You should ask a major in the university."
"Got it. If you just tell me the necessary equipment, I'll try to get at least the essential floor sketches from a major. If that doesn't work, I'll just formally hire a firm to get the drawings."
"Yeah. It's cleaner to do it that way. You need expert opinions because you have to meet fire and safety regulations. And you must take out the loan and bring in the equipment only after confirming the permit is granted. If you take out the loan and bring in the equipment, and then the permit doesn't come through... you know, right?"
"If I don't want to go bankrupt, I get the permit before taking the loan. Okay."
Next, I wrote [Product Portfolio].
"As I said, low-end products won't compete. And beyond competition, considering various taxes, raw materials, and fixed costs, a small distillery won't make any profit at under $5 per bottle. It's a deficit. Therefore, the wholesale price should be at least $6, but if you're going to aim for that middle ground, the positioning becomes weird, so I think it's better to aim for a wholesale price of $15 or more."
"That's the Korean light vodka-esque feel that becomes a cocktail base, like you mentioned before, right?"
"Exactly. We position it as a clean, aromatic alcohol like wine, lowering the proof after distillation. On top of this, we raise the distillery's grade with a higher-quality premium Andong Soju."
"Andong... what?"
"An. Dong. So. Ju."
"An-dong-so-ju?"
"...... Exactly. Good pronunciation. If we age that Andong Soju in oak barrels for over 6 months and set the wholesale price at over $30... the taxes will be huge, but the profit margin will be significantly higher."
At the mention of $30 per bottle, Jacob clenched both fists and steeled his resolve.
"I can do it!"
"Yeah, permits are the priority, so organize the necessary documents well. The Agricultural Extension Center will be able to tell you more about the details."
"Okay."
However, Chloe and Armando, who had never experienced Soju, looked at each other with questioning expressions. In fact, that reaction was normal.
After carefully organizing the equipment to be brought in, initial operating costs, and branding strategy, I turned my head to Chloe, who had been watching as intently as if she were attending a lecture.
"How about you guys? Is it going well?"
"Yeah. For the Royal Tioga, Dad finished the contract with Zaiger Genetics. He said the Coral is arriving soon, so they'll start the work."
"Right. Late March is best for grafting. The sap starts rising in the rootstock, and it's just before the buds sprout, so the probability of a good union is high. You're going to be very busy."
Even if she was only grafting a third of the 200 acres, the scale would be immense. She would probably be so busy that even if she spent every waking moment from mid-March to early April just grafting, she wouldn't have enough time. She would mobilize a huge number of workers, but it was the owner's job to check if the work was being done correctly.
She shrugged her shoulders and smiled.
"I'm fine. I'm actually looking forward to it. And I learned how to graft well from Zaiger Genetics. I'm completely confident."
"That's a relief. What about fertilizer and moisture management?"
"Since March started, I've been focusing on nitrogen fertilizers like urea, ammonium nitrate, and DAP. And I'm keeping the SWP (Stem Water Potential) at around minus 8 to 10 bars."
These were all things I had taught her.
"Should I go and check?"
"Anytime."
Just seeing her confident demeanor showed how much passion and attention Chloe was putting into the farm.
"Ask me too!"
Armando chimed in, as if craving attention.
"Are you confident in your chemistry and botany grades?"
Armando's face immediately fell.
"Ah, that's..."
"Let's get your grades up first. Your parents won't buy you a farm if your grades are low, right?"
"That's true..."
Rather than buying it, it was closer to taking out a loan.
"Just manage your grades well and learn a lot at our farm. Then let's look for a suitable farm together."
"What if the price of farms in the Napa and Sonoma area skyrockets suddenly by then?"
"Then we can just switch to something other than grapes."
"I don't want to. I want to be a winery owner like you!"
"Got it. We'll find a decent farm when the time comes. There's no history of AVAs in the Sonoma area skyrocketing until now."
"I guess so, right?"
Just as we were chatting, a woman passing by outside stopped, looked into the conference room where we were, and opened the door to enter. Naturally, everyone focused their attention on her.
It was Sienna, who entered with her blonde hair tied up and a confident expression. She looked around at us for a moment and said,
"What are you all doing?"
It wasn't a questioning tone, but one of genuine curiosity.
"We were just having a meeting among ourselves."
As I answered, Sienna looked at the business plan written on the whiteboard, and I awkwardly laughed and covered it slightly with my body. She chuckled and said,
"Are you afraid I'll steal it?"
"It's about my friend's business."
"Your friend is already doing business?"
"He's a farm owner."
"Ah... I see. Nice to meet you. Are you Brian's friend? I'm Sienna."
"I'm Jacob."
Sienna, who greeted him with a light wave of her hand, looked back at me.
"You know there's an alumni wine showcase soon, right? And the Winkler Dinner hosted by DEVO (Department of Viticulture and Enology student council). Are you... going to participate?"
"You mean me?"
"Yes. You're the only student in our department here."
I was slightly flustered.
"Can a freshman like me participate in the wine showcase? And the Winkler Dinner too?"
"The wine showcase is for all grades, and the department chair recommended you for the Winkler Dinner."
"Me?"
"That's right. He asked how about you take charge of one of the six courses?"
I wondered if this made sense, but considering the person in question was the department chair, I thought it might be plausible. After all, I was the student who had directly produced marketable wine.
"I understand."
As I nodded, Sienna looked surprised.
"You're accepting?"
"Since you asked me to."
"Wow... that's impressive. Okay. I'll look forward to it."
She looked at me with an unreadable expression, glanced briefly at Chloe, and then left. Chloe muttered something with just her mouth, and Armando whispered something in her ear.
"What are you talking about?"
"What are the alumni wine showcase and the Winkler Dinner?" Chloe asked.
"The alumni wine showcase is an event held at the Robert Mondavi Institute for Wine and Food Science. It's a place where UC Davis alumni wine producers introduce and taste their own wines, but I didn't know freshmen had to attend."
"Mondavi? That's a famous place."
Hearing her exclamation, Jacob asked me.
"Really? Is it that famous?"
"It's one of the largest wineries in Napa Valley. They elevated American wine to a world-class level with Cabernet Sauvignon grown in the To-Kalon region of Oakville."
"That's an amazing place."
The gaze returned to me, and I said with an annoyed expression,
"And the Winkler Dinner is an annual fundraising event hosted by our department's student council. It's a dinner event consisting of a 6-course meal and wine pairing, where various chefs prepare different dishes, and wines donated by UC Davis alumni wine producers are provided together."
"So what does it mean to be in charge of one course?"
"It means I have to come up with the optimal pairing for the donated wines."
Chloe, who had been listening, said happily,
"Wow, that's an event the whole school pays attention to! That's a great opportunity."
"That's only for kids who want to be sommeliers. I wonder why they'd entrust that to a winery owner, but..."
I met Jacob's eyes for a moment.
"Thinking about it, these seem like people I should get close to. I have to break the ice so I can promote Andong Soju later, right?"
"That's right!"
Even though Jacob hadn't even received his distillery permit yet, his passion seemed no less than that of any other winery owner.
And I started to get slightly curious at the thought that I could showcase the vinegar I had made with that food.