LEBANON, Ore. — Hazelnuts are already a familiar ingredient in U.S. kitchens but Robert Waterhouse wants to expand their culinary horizons by introducing more Americans to oil extracted from them.

“Just about anywhere you’d stick extra virgin olive oil, hazelnut oil will work as well,” said Waterhouse.

For over a year, Waterhouse has been running a one-man processing operation, Corylus Farms, that roasts, presses and sells hazelnut oil to specialty grocers.

Various uses

The product is highly versatile in its raw form, which can be used for salad dressings and similar purposes, but also as a cooking oil, so long as its temperature is kept at a moderate level.

“You wouldn’t deep-fry with it. You wouldn’t use it in stir-frying,” Waterhouse said. “If you get to the point it’s starting to smoke and scorch, it will create some off-flavors.”

Instead, he recommends using the oil to saute vegetables or poach duck, among other recipes listed on the website for Corylus Farms, which is named after the hazelnut plant’s genus.

Though it’s long infused French cuisine with a savory flair, hazelnut oil is less commonly known among home cooks in the U.S., he said.

“The French mostly stayed up in Canada. It’s just not part of our tradition,” Waterhouse said. “But if you go to France, there are dozens of artisanal oil makers.”

Flour a popular item

When he was starting Corylus Farms, Waterhouse expected the oil to be the company’s main product, but its popularity has been eclipsed by hazelnut flour.

American home chefs seem to be more familiar with the flour, which he manufactures by finely grinding hazelnuts after they’ve been pressed.

“To my surprise, the flour has been selling really well. I need to do more marketing on the oil,” Waterhouse said.

Hazelnut flour appeals to consumers who want to make gluten-free baked foods, but it can also partially replace regular flour in any recipe, he said.

Home bakers should start out by substituting about one-fourth to one-third of their regular flour with the hazelnut product, and work up from there according to taste, Waterhouse said.

“The flavor of roasted hazelnut really carries over,” he said, adding that it also boosts protein, moisture and density.

Waterhouse originally got the idea to make hazelnut oil about three decades ago upon moving to Oregon, where his wife’s family grows the crop in the northern Willamette Valley.

Idea takes root

As a chemical engineer, he worked at the Entek manufacturing facility in Lebanon, making materials for batteries, but the hazelnut oil business continued “fermenting” in his mind.

Along the way, he began experimenting more with the concept and attended a “food business boot camp” organized by Oregon State University.

“That really got me going,” Waterhouse said. “It got me thinking about processing and branding and marketing.”

Upon retiring from Entek, he bought a building along Lebanon’s main street and renovated it into a small-scale hazelnut processing facility, as well as a commercial kitchen that he shares with another business.

After failing to find an off-the-shelf press for hazelnuts, Waterhouse designed and built his own to extract the oil.

“The engineering background, of course, was useful, as was the experience of dealing with processes,” he said.

Corylus Farms made its first sale in early 2023, to 4 Seasons Farmers Market in Lebanon, and has since been distributing hazelnut oil and flour to other specialty stores, such as LifeSource Natural Foods in Salem, Ore., and Sundance Natural Foods in Eugene, Ore. Consumers can also buy Corylus Farms products directly online.

Sales growing

Though he doesn’t disclose exact figures, Corylus Farms has more than doubled its sales in 2024 compared to last year, which Waterhouse considers “a pretty good trend.”

Like most entrepreneurs, Waterhouse wants to see his company expand its reach and revenues, but he isn’t aiming to supply the Costcos and Fred Meyers of the world anytime soon.

“I’m afraid those operations would eat me alive,” he said.

He’d rather see the company grow organically by steadily adding new customers rather than take a big leap forward in production, which can saddle a startup with staggering debt and scaling problems.

“Rapid growth is really dangerous,” Waterhouse said.

Though his wife’s family still grows the crop, he buys hazelnuts that have already been cleaned, dried and shelled from the Northwest Hazelnut Co. in Hubbard, Ore.

“I’m very happy to let someone else do that so I can specialize in what I do,” he said.

One-man operation

Waterhouse performs the final processing work himself, making batches of hazelnut oil and flour as necessary to meet demand. Roughly 18 pounds of hazelnuts are pressed at a time, generating about a gallon of oil. Grinding the leftover nuts produces about 8-9 pounds of flour.

“I fill every bottle and every bag,” he said, as well as distributing much of the product himself.

All the hazelnuts used for Corylus Farms oil are roasted before pressing, resulting in a “slight caramelization” that allows the taste to “really blossom,” Waterhouse said.

“The distinctive aspect of my product is it has a more pronounced roasted flavor,” he said. “That was the flavor profile I was shooting for.”

While he isn’t angling for a second career as a hazelnut processing magnate, Waterhouse is thinking about his long-term plan for Corylus Farms.

Future plans

In about a decade, he may partner with an entrepreneurially minded young food scientist and eventually negotiate a way for that person to take over the company’s equity, he said.

If such an individual doesn’t come along, Waterhouse may just sell the company to a larger manufacturer. At this point, though, he’s focusing on gradually increasing the company’s volume and having a good time.

“This is just a fun, interesting ride for me right now,” he said.

Robert Waterhouse

Occupation: Retired chemical engineer and founder of Corylus Farms, a hazelnut oil and flour manufacturer.

Hometown: Lebanon, Ore.

Age: 69.

Family: Wife, cookbook author Linda Ziedrich, and three grown children.

Education: Bachelor of science degree in chemical engineering from the University of California-Berkley in 1979.

Website: Corylusfarms.com