The history of this business began with a bold idea: transforming production waste into a premium spirit. The idea belonged to Ottawa entrepreneur Omid McDonald. He took a break from technological startups to dedicate himself to his passion for craft distilling. You can learn more about all of this on ottawa1.one.
The Ambitious Idea
Omid McDonald heard a story from his cousin Neil McCarten (his future business partner) about a byproduct in dairy production that was simply being dumped. The entrepreneur saw an opportunity in this. He knew that rum was originally invented to process molasses from sugarcane. Then, an unconventional idea emerged: making alcohol from a dairy production byproduct.
After thorough research, Omid McDonald found out that this byproduct is called permeate. It is formed during the production of cheese and yogurt and consists practically of sugar, which is ideal for fermentation and distillation.
The next step was finding a dairy producer who would agree to process permeate into vodka and simultaneously reduce waste. The entrepreneur was fortunate enough to find such a producer.
Thus, Omid McDonald, together with progressive dairy farmers, manufacturers of a craft distillery, and investors from his technological startups, founded a company called Dairy Distillery.
The Story of Vodkow
A modern facility was designed and built in Almonte, Ontario. At the same time, the company’s multidisciplinary team set about perfecting the process of converting permeate into vodka. The product of their efforts received a completely clear and apt name—Vodkow.
In November 2018, Dairy Distillery opened its doors to the public in Almonte, launching its first product. The product is distinguished by its incredible smoothness, and the production process is ecologically sustainable.
In 2019, the company hired David Heros to scale up production. It is worth noting that this task was not a challenge for David Heros, as he was part of the team that successfully built the world’s first cellulosic ethanol plant in Brazil. David Heros researched the carbon life cycle, showing that alcohol from permeate would have ultra-low carbon intensity. This means that the production of Vodkow vodka will be carbon-neutral. Moreover, this opened up the possibility of converting permeate into transport fuel. Dairy Distillery showed itself to be environmentally conscious and technologically advanced.
Expansion
Omid McDonald and the other founders went further. They decided to create not only a premium vodka but also the perfect cream liqueur. This led to the development of a technology using 100% Canadian cream and the creation of the first lactose-free cream liqueurs in North America.
Vodkow’s lactose-free cream liqueurs (Vodkow Cream) are the first alcoholic beverage to receive the official ‘Blue Cow’ logo from Dairy Farmers of Canada. This officially confirms the use of 100% Canadian dairy raw materials.
The company expanded its product line, allowing consumers to enjoy cream liqueur without lactose problems. The brand’s alcoholic beverage flavors include the following:
- VODKOW Dark Roast Coffee Cream. The liqueur was created with local producer Equator Coffee Roasters. This option is suitable for drinking neat or for a Jimmy’s Iced Cappuccino. The drink has a rich and intense coffee flavour.
- VODKOW Golden Bean Chocolate Cream. The chocolate-flavoured liqueur was created in cooperation with the local company Hummingbird Chocolate. The drink has a luxurious, decadent taste.
- VODKOW Sugar Shack Maple Cream. The liqueur contains organic maple syrup from Fulton’s Maple Sugar Bush. The drink has a sweet and characteristic Canadian flavour.
- VODKOW Classic Vanilla Cream. This is the basic and universal flavour. The drink is characterized by a clean, elegant version of cream liqueur with a vanilla note. The drink is a base for cocktails or for drinking neat.
The Almonte Friendship Series
The town is truly friendly. Dairy Distillery even released a documentary short dedicated to the launch of a limited-edition liqueur series and how it was received by local residents and other businesses.
The owners were touched by the support, especially from local producers. This demonstrates the other side—cooperation that makes the small town of Almonte famous.
Awards
In 2022, premium Vodkow vodka won a prestigious Gold Medal at the San Francisco World Spirits Competition. In the alcohol business, this is one of the most prestigious awards in the industry.
In 2023, Omid McDonald and Neil McCarten, the founders of Dairy Distillery, appeared on the Canadian CBC show Dragons’ Den. They presented Vodkow and their lactose-free cream liqueurs to the public. They asked for $800,000 for a 5% stake in the company on the show. Manjit Minhas paid $1.25 million for a 10% stake in the company. This deal was strategically important, as it brought not only investment but also experience and connections in the field of alcohol distribution.
Omid McDonald’s ambitious idea has therefore yielded many positive results. They managed to convert unused milk sugar into high-quality spirits (vodka and cream liqueur). Furthermore, this supports dairy farmers and contributes to waste reduction.
