BUSINESS JOURNAL

Jobless man turns hobbies into sales

Lisa Peterson
For the Sioux Falls Business Journal
Russ Olson, owner of Steins and Vines, shows a basic hydroponics kit he sells for starting seeds in his store at 2307 W. Madison St.

Before being laid off in November 2010, Russ Olson had spent years as a machinist for a manufacturer in Tea. A byproduct of the Great Recession, Olson found himself out of a job and struggling to find a new one.

“No one was hiring or paying very well at that time,” Olson said. “I had to do something.”

Olson, then 47, decided to parlay his decades of experience gardening and brewing beer into starting a business. Using $15,000 in savings, he started Steins and Vines, which is at 2307 W. Madison St.

The store’s idiosyncratic assortment of products – wine and beer-making kits and hydroponic gardening equipment, including grow lamps, automatic watering systems, organic garden supplies and more – can be traced to Olson’s hobbies and passions.

“I’ve been a gardener all my life,” Olson said. “My grandfather had an amazing garden, so that was an inspiration, plus he made beer and wine. So both were hobbies of mine.

“I’d been playing with hydroponics and gardening, and had seen similar shops in Omaha but not with the home brewing. I thought it would be a good match with hydroponics, and it seems to be.”

The entrepreneur enjoyed sales of $50,000 his first year – a number that has tripled today. Sales are split evenly between brewing and hydroponic products.

“We’re here to provide the tools and information needed to be successful growing gardens indoors and outdoors, and creating your own craft beers or wine,” Olson said.

His 2,400-square-foot business has a kitchen in the back to conduct brewing classes. Olson also has taught mead-making classes. Mead, the world’s oldest alcoholic beverage, is making a comeback, he said.

“It’s produced by fermenting honey with water,” he said.

The business caters to do-it-yourself brewers and hydroponic gardeners. An eclectic customer base includes school districts, wineries, Ethiopian refugees and area Hutterite colonies.

“The South Dakota Game Fish and Parks recently purchased an air tank from us to keep some catfish alive,” Olson said.

Increased interest in hydroponics reflects the effects of food-safety concerns among consumers and the growing popularity of locally sourced products. Crops grown hydroponically generated more than $553 million in sales nationally in 2007, according to the latest U.S. Department of Agriculture data.

“There is certainly a local food movement gaining momentum, and it’s good for local production,” said Paula Christensen, owner of Green Earth Products in Rapid City.

Thousands of consumers have been sickened by E. coli and salmonella contaminations of spinach, scallions, chiles, cantaloupes and other fresh produce in recent years. The outbreaks have helped boost demand for local produce.

“Food safety is a concern,” Christensen said.

Hydroponics is a method of growing plants in inert material with water and mineral solutions, without soil. Olson offers products for continuous-flow systems, which circulate water and nutrients through tubes and covered plastic trays. Produce matures four to eight weeks after the seeds are started in rock wool, a growing medium of stone and chalk.

Hydroponic lettuce seedlings at Steins and Vines are ready to be transplanted into a larger system.

On the brew side, Steins and Vines has an extensive inventory of yeast strains, hops and grains. Olson also makes and serves beer on the premises, exhibiting his talent for the craft.

Pete Baumberger of Baumberger Vineyard and Winery in Dell Rapids purchases a variety of products from Steins and Vines.

“We buy yeast, corks, bottles and other winemaking supplies from them,” Baumberger said. “They are like a one-stop shop.”

Do-it-yourself brewer Barry Bordewyk buys brewing equipment and ingredients from Steins and Vines.

“We bought some honey from them, which we made into a beer wine,” he said.

Olson sees plenty of potential to grow. He’s ramping up his online presence and will launch a website. He’s looking to purchase a larger building where he can do canning classes and have more supplies and ingredients on display.

“I’m excited about the future,” he said. “We’re here to stay.”