Frank Reinhold started Flag Hill as a winery in Lee, New Hampshire in 1990, but before he could start a distillery, he had to change state law. He was instrumental in the fight to modify New Hampshire's prohibition era law, and in 2004 he opened Flag Hill Spirits.
In order to fund the operation, he sold a large piece of family land to a state program that preserved it for conservation. Reinhold buys as many local and regional products as possible to use in his spirits and liqueurs. He also installed radiant heat floors and a solar thermal roof to help keep the distillery as green as possible.