Coquille Tribe plans to open Oregon’s first tribal-run distillery

Margaret Simpson has a vision for how locals and visitors can soon enjoy an evening at the Mill Casino in Coos Bay: sipping a craft cocktail made with liquor distilled onsite while enjoying a cigar and the stunning view of the water, with the tree-topped mountains on the horizon.

Simpson is CEO of the Coquille Economic Development Corporation, which runs the casino and is helping oversee the project that will make her vision a reality. In partnership with Washington-based distilling company Heritage, the Coquille plan to open the first tribal-run distillery in Oregon at The Mill.

“Cocktails are, for a lot of people, that preferred drink,” Simpson said. “By having a distillery — producing it ourselves in partnership with Heritage Distilling Company — allows us to increase our profit margins. It’s a very viable stream of revenue for the tribe.”

The more than 1,000-member, federally-recognized Coquille Tribe’s ancestral homeland includes Coos Bay and the surrounding area on Oregon’s south coast. Timber was the area’s main economic driver until the 1990s, when tighter environmental regulations and other economic and technological changes forced a steep decline in the industry in the Northwest. While nothing has quite replaced the timber industry, tourism has become a significant contributor to the local economy.

“Coming out of COVID, a lot of casinos have seen a big increase in volume and gaming,” Simpson said. “We also experienced that as well. It was a good opportunity for us to make investments at the property and start looking at: how we could build onto the model that we already have? How could we bring new amenities to the property, to the area, that would drive tourism?”

Michael Laffey, marketing director at The Mill, said Coos Bay already attracts tourists for its natural beauty and outdoor activities. On top of that, there’s a growing offering of local restaurants and breweries. Laffey said they were looking for something unique that would attract visitors from Eugene, Portland and beyond.

“We just wanted to do something where we can infuse local culture with something that’s hip and cool,” Laffey said. “And that’s really what I’m excited about is being able to brand these particular products after Coquille culture, after the region — those things really make it worth the drive from somewhere to come down here to check out.”

However, until 2018, it was illegal to site a distillery on tribal land. A bipartisan bill that passed the Senate unanimously before becoming law repealed the distillery ban. That paved the way for tribes to open and operate their own liquor-making businesses — but alcohol regulations and taxes vary from state to state.

Oregon has some of the strictest laws around liquor, which is controlled by the state. The Coquille Tribe spent two years working with Oregon’s alcohol regulators to reach an agreement allowing it to apply for a distillery license.

Simpson said construction started this fall on the distillery and tasting room. The project will include renovations to the casino’s fine dining restaurant and the creation of a new cigar lounge. An opening date has not yet been announced.

In addition to providing new opportunities for travelers or those living in the Coos Bay area looking for an evening out, Simpson said the distillery is expected to create 30 new permanent jobs.

“As a tribally-owned business, we really focus on growing our own, bringing people up within the organization, giving them the skills, the experience that they need to be able to execute a position on the highest level,” she said. “And this will open up new opportunities.”