Seacrets looks toward expansion with help from new Maryland legislation

Ocean City's Seacrets is looking at expansion again: this time to its distillery. 

Through the passage of House Bill 509, businesses with a Class 9 limited distillery license will be able to increase the amount of annual products it manufactures from 15,500 to 31,000 gallons that can be sold at retail. This would allow Seacrets to increase the amount of spirits it produces without selling it and purchasing it back from its distributor. 

On March 8, HB 509 passed the House of Delegates unanimously and is moving through the Senate. The passage of the bill will allow Seacrets Distilling Company to expand its distillery equipment and speakeasy upstairs. 

“It doesn’t make sense for Seacrets to be paying invoices to purchase its own spirits back from an outside distributor,” said Delegate Mary Beth Carozza, R-38C-Worcester, in an email statement. “With this legislation, we can keep more revenue and add more jobs here in Worcester County as Seacrets continues to invest and expand on the manufacturing side as well as looking at purchasing more and bigger equipment to improve its current operations.”

While Seacrets first opened on June 29, 1988, the Seacrets Distilling Company opened its doors in June 2016 next door to Seacrets Bar, Restaurant and Nite Club. The company began making its own spirits in May 2014 at Delaware Distilling Company in Rehoboth Beach.

In 2015, House Bill 689 was approved by the Maryland General Assembly "which created a new Class 9 limited distillery license allowing Seacrets to base its distillery operations in Worcester County instead of Delaware," Carozza said in an email statement. This legislation limited Seacrets to selling a maximum of 15,500 gallons at its own facility.  

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Today, Seacrets has reached that limit with the distillery producing about 15,000 gallons annually. Any additional gallons of its spirits need to be driven to the company's distributor in Jessup, Maryland.

"After entering the distributor’s inventory, it must be trucked back to Ocean City and Seacrets has to pay a retail invoice to the distributor for its own product," Carozza said. 

Owner Leighton Moore believes if HB 509 passes it will make a big difference to the distillery's operations. It will also save time and money as Seacrets will no longer need to send its trucks to Jessup and pay retail to get its spirits back from the distributor. 

“For a whole multitude of reasons it just doesn’t make sense," Moore said. 

Increasing "the transfer limit to 31,000 gallons should allow Seacrets to stay within the limits until at least 2022," Carozza said.

Moore expects the distillery and speakeasy expansion to begin in October and be completed around March 2019. He said renovations wouldn't be major, but a large project nonetheless.  

“It makes a big difference. If I couldn’t get (HB 509) passed I wouldn’t be adding on," he said.

Moore said for customers to expect to see the distillery's manufacturing capacity to multiply by six allowing the company to make more of its various spirits ranging from rum, vodka, whiskey, bourbon and gin. 

Seacrets Distilling Company is currently working on bottled green tea shots which combines peach schnapps with whiskey, said Cody Miller, head distiller. 

Miller said what makes Seacrets Spirits different is the time and quality spent on each item. Creating a new spirit flavor can take anywhere from a week to months as its about getting the right fresh ingredients and allowing enough time for the product to distill properly. 

“We’re not here to rush anything," he said. 

As for the speakeasy renovation, Moore said it will be expanded to add a second bar and the ability the split the space in half for two different events. Going along with the building's current design which is a nod to the prohibition era, the speakeasy redesign will include plenty of antiques and a classic look, he said. 

“It’s the best thing I’ve ever designed,” he said. 

This year, Seacrets hits its 30 year anniversary. Moore said nothing special is planned to celebrate the milestone, but guests can expect the usual firework display on July 4. The owner calls the company an Ocean City icon with its continuing ability to draw locals and tourists alike. 

However, that doesn't mean Seacrets is done evolving. Continuing to invent new products and renovate buildings is something Moore always has in the back of his mind. 

“Even if you’re on the right track, you’ll get run over if you don’t keep moving," he said. 

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If you go: 

What: Seacrets Distilling Company 

Where: 111 49th St. in Ocean City 

Tour times: Saturday and Sunday between 11 a.m. and 5 p.m. (daily tours during on season)

Price: $10 includes tour and tasting of three spirits 

Contact: (410) 524-2669