From Cheesemaking to Distilling Spirits: USDA Loan Helps Minnesota Creamery Venture Into New Industry

Dec 05, 2024

By Charlie Hildebrand

Nestled in the countryside of Brooten, Minnesota, Redhead Creamery stands as a beacon of innovation and community spirit. What was once a traditional dairy farm has expanded into a family-operated business widely recognized as a vibrant hub for artisan cheese and distilled spirits. Redhead Creamery's journey is one of vision, hard work, and fearlessly venturing into new territory.

Redhead Creamery's story began in 1983 when Jerry and Linda Jennissen founded Jer-Lindy Farms. Thirty years later, the next generation of the Jennissen family stepped in when daughter Alise and her husband, Lucas Sjostrom, joined Jerry and Linda to carry out their vision to expand their family's legacy. In 2013, they expanded Jer-Lindy Farms by founding Redhead Creamery, aiming to significantly impact artisan cheese production rather than simply milking commodity dairy cattle.

"Everyone has different passions and different dreams, and for us, we had the background and skills to work and market directly to people. We thought we could add more value to our farm doing that," Lucas recalled.

After years of successful cheesemaking, the Redhead Creamery team envisioned adding a distillery to complement their cheese production. However, the risks associated with this expansion loomed large. It was with the support of a $1,500,000 Rural Economic Development Loan and Grant (REDLG) from USDA Rural Development—administered by Stearns Electric Association—that these dreams turned into reality. This partnership allowed Redhead Creamery to secure a fixed, low-interest loan, allowing them to expand their operations beyond their initial plans. Lucas emphasized how the USDA loan facilitated a much more significant expansion than an initially planned 20 by 20 building.

"It allowed us to think about all three things at the same time," Lucas said, referring to the expanded cheese-making operations, a new bar and restaurant, and the much-anticipated distillery.

The new distillery produces "araga," a unique spirit created from whey—the byproduct of cheese production. This innovative approach has allowed the Creamery to turn what was once waste into a value-added product, something produced by fewer than two dozen distilleries worldwide.

"The benefit to us is that we're turning a total waste product into a value-added product," Lucas explained. "It seemed pretty obvious that if we could take what that was and turn it into what we thought it could be, the araga was a product worth investing in."

"We are just so happy to be done with construction and on to making business happen," Lucas said.

Redhead Creamery continues to thrive, not only as a producer of artisanal cheese but also as a destination for locals and visitors alike, showcasing the power of rural economic investments in fostering small business growth. Their story is a testament to the resilience and entrepreneurial spirit that Rural Development proudly invests in.

"We are just so happy to be done with construction and on to making business happen," Lucas said.

Source : usda.gov
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