Before Prohibition more than 1,000 farm distillers produced alcohol from New York grains and fruits. In 2005 Tuthilltown Spirits brought the tradition of small batch spirits production back to the Hudson Valley.

For 220 years Tuthilltown Gristmill, a landmark which is listed on the National Register of Historic Places, used waterpower to render local grains to flour. In 2001 Ralph Erenzo and Vicki Morgan acquired the riverfront property. In 2003, Ralph Erenzo and Brian Lee created Tuthilltown Spirits LLC. They converted one of the mill granaries to a micro-distillery. Two and a half years later, Tuthilltown Spirits produced their first batches of vodka from scraps they collected at a local apple slicing plant.

Today, Tuthilltown Spirits distills vodka from apples grown at orchards less than five miles away and the highly awarded Hudson Whiskey line, using grain harvested by farmers less than ten miles away.