How Gypsy Distillery transformed Northern Michigan’s new tasting room, events center

The sleek bar area inside Gypsy Distillery, in a space that used to be a tack room for the Bay Harbor Equestrian Club. Now, you can get cocktails mixed with award-winning Gypsy vodka, whiskey and more. Photo provided by Gypsy Distillery.

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PETOSKEY, MI – In the years after Bay Harbor Equestrian Club shut its barn doors, people would drive by this huge piece of property overlooking Little Traverse Bay and wonder what it would become. Would its horse tradition be revived in its paddocks and fenced fields? Or would it become yet another development of high-priced homes in this vacation hotspot?

It turns out, the answer was found in the sleek bottles of award-winning Gypsy-brand vodka and whiskey – and a team devoted to transforming this sprawling barn and riding arena facility into a community gathering place where everyone is welcome.

Gypsy Distillery, which celebrated its grand opening over Memorial Day weekend, has embarked on a multi-faceted mission with this renovated property. It’s part tasting room, part events venue, and it has full on-site production for its growing distillery and canned beverage line. Step through the front doors now and you’ll see the old spacious tack room has been transformed into a tasting area with a modern bar on one side. Comfortable sitting areas on the other side invite people to sip and savor over conversation.

The equestrian center’s massive indoor riding arena has been turned into an indoor patio area with games for kids and adults - and plenty of seating. Turn a corner into a corridor that once housed a long line of horse stalls and you’ll find two restaurants that were offered space by the distillery – Libe Lula and Dusty’s Gourmet Dog House. Tucked in the back is an old-style arcade area for kids that would make any 1980s gaming nerd clap for joy.

What sets this apart as a tasting room? The transparency it offers its customers as it grows its operation. Starting as High Five Spirits and Gypsy Spirits based in downtown Petoskey, the company has moved its expanded distilling and production for its growing line of other beverages into this 42,000-square-foot facility that sits on more than 20 acres at 5251 Charlevoix Avenue, just south of town. A tidy work area takes up the back half of the riding arena and is completely visible not only from the indoor patio, but from the catwalk on the arena’s second level, where a vintage members-only style lounge invites people to settle in and stay awhile.

A comfortable lounge area inside Gypsy Distillery. Grab a cocktail or drink at the bar and settle in to sip and savor. Photo provided by Gypsy Distillery.

Bringing Gypsy Distillery to life has been a huge labor of love not only for its owners and executive team, but for all the tradespeople and work crews who pitched in to make it a reality. After a soft open last fall that drew in locals and curious vacationers, the Gypsy team spent the winter months perfecting their plan.

But getting to this summer’s grand opening didn’t seem so certain several months ago, the owners said.

“When they took us up there (to look at the property) for the first time, I was like, ‘Are you out of your mind? We can’t afford this.’ " said Adam Kazanowski. He founded High Five Spirits and took on the equestrian center transformation along with his twin brother, Michael Kazanowski, and their partner, Michael Kolkmeyer, the company’s director of operations. At that point, many developers had eyed the shuttered facility. Early estimates had the trio thinking that the cost to bring such a big building up to code for what they wanted to create would be astronomical.

But then something unexpected happened. People wanted to help. Because they’d been in business in Petoskey, they knew local tradespeople who stepped up to take the project forward.

“We really got to connect with some really good people up here,” Adam Kazanowski said. “And Emmet County was great to work with. We pretty much got it done and ready to open in nine months.”

Future Vision

The building itself is still a work in progress. Another corridor of empty horse stalls is largely untouched, but could be a fantastic al fresco area overlooking the bay in the future. They have a line on outdoor musicians to visit this summer and are mulling the idea of creating a larger outdoor concert venue on a rolling stretch of lawn.

The property has already hosted some weddings and corporate functions – local companies began booking space right away – and the property’s leadership team believes its future as a busy event center is solid given its space, amenities and knockout view.

Gypsy Distillery's new tasting room and events center had its grand opening. The space overlooks Bay Harbor near Petoskey, and Little Traverse Bay. Photo provided by Gypsy Distillery.
The indoor patio area, set up for a special event. Photo provided by Gypsy Distillery.

An Expanding Footprint

All of this dreaming and planning for the property is happening simultaneously with a big jump in its production capacity.

Started by the Kazanowski brothers in 2015, High Five Spirits’ lineup features its signature Gypsy vodka, billed as the number-one-selling craft vodka in the state. It also distills Petoskey Stone Botanicals gin with hints of local juniper berries and lavender. It has a line of Mackinac Island rums, with flavors including banana, coconut and vanilla cinnamon.

Of special note is an upcoming second batch of its limited-edition Gypsy “Queen” whiskey. This smooth-sipping pour is a loving memorial tip of the glass to the Kazanowskis’ mother and biggest cheerleader, Cindy Kazanowski, who passed away in 2022.

The Gypsy Vodka logo. Photo by Tanda Gmiter|MLive.

The ready-to-drink canned cocktails are also a growing segment, as the speedy canning line in the production area attests. Popular blends include The Mulligan, which features a combination of lemonade, iced tea and Gypsy vodka that clocks in at an 8% ABV. This also comes in peach and raspberry flavors. There is also the Clean Cocktail line that comes in a variety of flavors with no sugar, no carbs and no artificial flavors.

The plan is to ride this wave into a bigger distribution footprint, backed by the expanded distillery and production capabilities. And the awards have been nice, too. Gypsy vodka was named the “best tasting vodka in America” and its gin won “Best American Spirit” at the prestigious London Spirits Competition.

“We are really starting to get national attention,” Michael Kazanowski said.

High Five Spirits ready for distribution at Imperial Beverage in Kalamazoo, Michigan on Tuesday, March 14, 2023. (Joel Bissell | MLive.com)

Special Touches Inside the Distillery

Once you are inside Gypsy Distillery, there is plenty of space to explore. Some things we noticed:

  • It’s got a modern vibe but lots of rustic touches that hark back to the equestrian club. Near the tasting room, you’ll find the original horse stall partitions have been worked into the design. There are still saddle holders on the walls.
  • Go when you’re hungry. Both Dusty’s and Libe Lula have full menus. If Libe Lula has a weekend brunch going on while you’re there, don’t pass that up.
  • Take time to peruse the spirit collection. You’ll find the full lineup of pretty bottles tucked into alcoves in the wall near the bar - all tastefully lit so the liquid inside shines softly.
  • Want to stay overnight? That can be arranged. Gypsy Distillery has a couple of upstairs condos that can be booked via Airbnb. There are two-bedroom and three-bedroom options.

For more information about the new Gypsy Distillery tasting room and its event venue options, check the website here.

For details on Gypsy Vodka and the downtown Petoskey tasting room, see the website here.

Headed to the Petoskey area? Check out more fun things to do at the Petoskey Area Visitors Bureau website.

Love the Petoskey area? Read more travel stories here:

Northern Michigan’s Inn at Bay Harbor is waterfront oasis with spa, private cottages

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