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New distillery plans expansion less than 6 months after moving to SLO. What’s changing?

Despite being open less than half a year, a recent addition to the San Luis Obispo craft spirits scene already has its eyes set on growth.

Black Market Spirits could soon get a makeover at its 10 Higuera St. location, with a brand new, larger building to house the distillery, a restaurant and a tasting room, according to an application filed with the city.

Founded in Santa Barbara in 2019, the business relocated to the former Krobar Craft Distillery location on Higuera Street in December to take advantage of their “deep ties all over the Central Coast,” co-founder Casey Wilkinson told The Tribune. Matt Fraser is the other co-founder and CEO.


What is that in SLO County?

Ever wonder what that construction is in your town or what happened to that local business? We’re finding out the answers. Send us your questions and tips by emailing reporter Kaytlyn Leslie at kleslie@thetribunenews.com.

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“We had our eyes and ears open for a few years looking for space to have our own facility,” Wilkinson said. “This opportunity was brought to us, and we jumped at it. We love the SLO community and could not be more excited to plant our flag here amongst many other great distilleries.”

The distillery offers “brands that play in almost every category rather than being specific to only one or two,” Wilkinson said. Those include the company’s Hendry’s Vodka, Cleo Gin, Blind Burro Rum, Black Market Rye, Throw Back Fernet and Kaya Botanicals.

Meanwhile the business’s Higuera Street tasting room offers small bites, beer, wine and specialty cocktails.

“We enjoy being able to create various cocktails and experiences,” Wilkinson said.

Though it’s been open a little under six months, Black Market Spirits is already eyeing its next step: a new building.

According to city planning documents, property owner Keith Sweeney proposed building a new 23,164-square-feet structure on Higuera Street that would house a distillery, restaurant, tasting room and associated spaces.

The project would also include the addition of a one-bedroom residential unit and several site improvements like asphalt and concrete removal, on-site water and sewer service lines and connections to existing city wastewater infrastructure, according to the application.

“The primary goal of the project is to create a destination that allows local guests and visitors to have an immersive, education experience while promoting the local business on site,” planning documents said.

The field that will house the project is behind the former home of Krobar Craft Distillery, now occupied by Black Market Spirits.
The field that will house the project is behind the former home of Krobar Craft Distillery, now occupied by Black Market Spirits.

The proposed two-story building would be between 33 and 40 feet and would be located behind the distillery’s current, smaller building.

Wilkinson said things would likely not change much at the current 10 Higuera St. space, but that the new space would offer an opportunity for a “state-of-the-art distillation facility,” restaurant and brand education opportunities.

“Over the next few years we will continue to curate a fun, affordable experience at our current location while developing the building in the back, which will take things to a whole new level once that is completed,” Wilkinson said.

The Architectural Review Commission reviewed the project in early May and recommended approval to the city’s community development director. It will next head to the San Luis Obispo Planning Commission at an as-yet undetermined date.

This view is of a field and parking lot behind Black Market Spirits where the new building will be built.
This view is of a field and parking lot behind Black Market Spirits where the new building will be built.