Black Frost Distilling: Farm to barrel

Distillery brings the North to life with Heartland Energy support

A brewmaster and a farmer stood in a barley field.

It sounds like the setup to a punchline. But in reality, it was the beginning of a dream.

For Jace Marti and Nate Gieseke, that moment in the field happened in 2015. The barley was intended to supply the iconic Schell’s Brewery in New Ulm, MN.

As the long-time friends and entrepreneurs admired the crop, an idea sparked. Could Gieske’s barley also inspire world-class whiskey?

Combining their roots and passions, Marti and Gieseke created Black Frost Distilling. At the heart of their mission is terroir–the idea that the land and environment shape their product’s flavor.

From Minnesota-grown grains to locally crafted oak barrels, Black Frost’s whiskey embodies this principle.

With financing assistance from Heartland Energy, Marti and Gieske are scaling up to share their distinctly northern whiskey with a wider audience.

Taste of the North

Black Frost’s commitment to northern terroir sets them apart. It’s an idea Marti became familiar with, and passionate about, as a sixth-generation brewmaster.  

“We do a lot of things differently here with intention,” he said. “Little things that add up to produce something that is unique to the market.”

Gieseke, a sixth-generation farmer, grows most of the corn, rye, barley and wheat used in Black Frost whiskey. Local farmers may supplement when needed. The distillery occasionally sources some specialty malts from Wisconsin, which shares a similar climate and stays true to their northern roots. 

Black Swan Cooperage of Park Rapids, MN, crafts their barrels. They play a key role in shaping the whiskey’s profile.

“Minnesota-grown oak is unique because the growing season is shorter,” said Marti. “The growth rings are tighter. You get a vanilla-forward flavor from those oak barrels.”

Black Frost’s fermentation process stands out as a nod to northern traditions. Inspired by Canadian whiskey-making, they mash, ferment, distill and barrel the grains individually.

Their innovative fermentation process features open-top, wooden fermenters. This allows wild yeast to integrate in the mixture, developing bold, distinct flavors.

Even the name “Black Frost” ties back to the state’s rugged beauty. A black frost, or killing frost, is a stark marker of winter’s arrival.

It’s also a symbol of resilience and transformation, much like the whiskey-making process.

Community hub

Black Frost’s building also lends itself to the company’s unique character. Over 100 years old, it used to be home to a grocery wholesale business.

Marti and Gieseke transformed the space to meet their needs yet maintain the building’s charm. Mixing updates with original architectural features, the building has an elevated, welcoming atmosphere.

They opened the doors to the public in the fall of 2022. Guests can gather in The Quarters cocktail lounge or rent the venue space for private events. There is also an outdoor patio for warmer weather seating.

In addition to whiskey, Black Frost specializes in rum and crafting signature drinks. The distillery’s ‘Old Fashioned’ and Kentucky Derby parties have already become local favorites.

With Black Frost in the neighborhood, weekends in New Ulm have become a celebration of local flavor and craftsmanship.

Growing with Heartland Energy

Marti, Gieseke, and their team filled their first barrel of whiskey in August of 2022. Since then, they’ve stocked 1,400 barrels, which fill the second-floor rickhouse plus a nearby warehouse.

But whiskey isn’t rushed. By law, it must age at least two years before it’s ready for sale.

This presents unique challenges for generating working capital. Heartland Energy is helping Black Frost navigate these hurdles by providing essential funding.

Heartland Energy provides wholesale power to New Ulm Public Utilities. Their revolving loan program, or HELP Fund, assists businesses with start-up or expansion.

The Rural Economic Development Loan and Grant Program (REDLG) through USDA provides funding for rural projects through local utility organizations. USDA provides zero-interest loans to utilities, such as Heartland Energy, which they pass on to local businesses for projects that will create and retain employment.

Heartland applied for and secured $2M in zero interest financing through REDLG on behalf of Black Frost. The support allows the distillery to scale up production, stock inventory and maintain operating capital as they grow.

“The support from Heartland will fill a capital need that will allow us to continue our production and aging strategy,” said Gieseke. “It enables us to produce enough product to properly age our whiskey as well as release longer-aged products in the future–something we hope to do.”

Heartland Director of Economic Development Casey Crabtree emphasizes the strong connection between Black Frost and its hometown.

“Black Frost is embedded in the New Ulm community,” said Heartland Director of Economic Development Casey Crabtree. “Their success is the community’s success. They are committed to growing their local economy and we are proud to play a part in their journey.”

Spirit with a story

Black Frost released the first twelve barrels of bourbon on November 29, aptly known as Black Friday. The release featured distillery tours, cocktail kits, new merchandise, bourbon chocolates and more.

“The community was very supportive,” said Gieseke. “We had great attendance [at our celebration] and sold out of some of our merchandise very early.”

From the batch, they were able to produce 2,700 bottles of bourbon. They expect to release their next product, a rye whiskey, in March of 2025.

Now that their product is available to the public, Marti and Gieseke hope to bring a fresh perspective to the bourbon scene.

Unlike traditional methods, they blend their components after they age. This single-grain process provides unlimited flexibility to create complex and diverse flavor profiles.

Much like the whiskey they produce, it illustrates their distinctive character.

“I do believe the flavor we are producing is unique,” says Marti. “We set out with the goal of producing quality whiskies with a strong sense of place, and I hope people can taste that when they try our bourbon.”

According to him, the flavor of the North shines through notes of baking chocolate, vanilla, cherry cola and spiced candied orange. It reflects their meticulous process and Minnesota’s rugged beauty, achieving terroir.

From grain to barrel to bottle, every step of production captures the essence of home.

“This is just the beginning,” says Gieseke. “We want every sip to tell the story of the North. With Heartland Energy’s support, we’re ready to share that story with more people than ever.”