A Series of Unfortunate Events Leads to the End of Golden Moon Distillery

"We're out of rope," says Stephen Gould, owner of Golden Moon Distillery and its speakeasy-style taproom in Golden, both of which have won many domestic and international awards over the years, including several Westword Best of Denver honors.

But now the distillery is ceasing operations immediately — a move that comes after years of business challenges that coincided with Gould's ongoing battle with cancer. The distillery’s assets "will be liquidated by Live Oak Bank in accordance with their interpretation of SBA regulations in the near future," according to a release announcing the closure.

Fans do still have time to visit the decade-old speakeasy, one of our picks for the Denver area's top 100 bars, for a final taste of Golden Moon's unusual lineup of spirits. "We will keep Golden Moon Speakeasy operating in the near term, as we look at ways to keep that part of the business intact, likely with new ownership. That is assuming the bank allows us to do so," the release notes.

The business started in 2008, moved into a pilot plant in 2010 and began legal production in 2012. "We took a very slow and deliberate tack," Gould notes.

Golden Moon first became known for its absinthe, which was created after years of research and deep dives into Gould's vast library of antique distilling books. It then added more uncommon spirits to its lineup, including grappa (wine brandy), apple jack (apple brandy), crème de violette, kümmel (made with caraway and cumin), dry Curaçao and Ex Gratia (a Génépii-style herbal liqueur), as well as gin and several whiskeys.
With a focus on growing trade relationships overseas and expansion of domestic distribution, the distillery had a banner year in 2017, Gould says, so in 2018, he took out a $3 million SBA-backed loan to build a world-class distillery. "We thought we were ready to rock and roll," he recalls. "We thought our business plan was sound, but our timing could not be worse with the external events" that followed.

First, Gould recounts, the anti-Mexican rhetoric of the incoming Trump administration caused Golden Moon's Mexican importer to cut ties. Then, as the buildout of the new distillery was being completed in 2019, "it was the beginning of the steel and aluminum fight," he continues.

Gould had extensive experience in international trade when he started Golden Moon, and made it a key part of its business plan. "No one had any idea this trade war would happen," he says. "We were already seeing an erosion in sales because of the anti-trade rhetoric coming out of Washington, then there was the Boeing trade wars. When that occurred, the first products they put tariffs on was American whiskey."

While larger distilleries were able to absorb the tariffs, smaller operations like his "were bled," he notes.

The pandemic came next, which put even more strain on business. Then, a month after the European Union removed the trade tariffs in January 2022, Russia invaded Ukraine. That caused the German economy to crash, putting an end to a German distribution deal Gould had in the works at the time.

On top of the business challenges, Gould adds, "In the last six years, I almost died three times of cancer," the result of radiation he was exposed to while serving in Iraq. He's also had to have several surgeries on his eye, which was damaged by chemotherapy, leaving his eyesight impaired.
Now his health prognosis is looking up, he says, "just in time to lose everything I've ever worked for." The business, he adds, "is primed and ready to expand, I just don't have the capital to do it. If an investor came in, they'd have a turnkey operation."

He's been looking for that investor, and also put the business up for sale in late 2023 — but he's been unable to find either an investor or a buyer after an offer fell through last month. "As recently as five or six weeks ago, we thought we had a way out of this," he says. But after exhausting all of his options, "the company is now out of cash and time, and we have no alternative at this point."

"This distillery has been a passion project for both of us," says co-founder Karen Knight, who headed up the development of the speakeasy. When it debuted in 2014, she notes, "Nobody was really doing that type of tasting room anywhere. It's really guided how craft distillers present their products across the country."

It also jumpstarted a "craft renaissance" in its hometown. "We were the first venue in the area that brought that kind of craft cocktails into Golden," Knight adds.

"We've built something amazing with our brands," Gould says.

"I wouldn't give up this adventure for anything," concludes Knight. "We've built relationships in food and beverage all over the world. We've made great friends and had adventures that we would never have otherwise. ... The team that we have and the community that has supported us is unmatched, and we're so grateful for those experiences."

Golden Moon Speakeasy is located at 1111 Miner's Alley in Golden and will maintain its regular hours for now. It is open from 4 to 10 p.m. Tuesday through Thursday, 4 p.m. to midnight Friday and Saturday, and 4 to 10 p.m. Sunday. For more information, visit goldenmoonspeak.com.