Search for efficient low-cost substrate/additives are gaining significant impetus in bacterial cellulose (BC) production. Makgeolli sludge (a traditional Korean wine distillery waste) is enriched with organic acid, alcohol, and sugar. Using makgeolli sludge filtrate (MSF) and Hestrin-Schramm (HS) medium (g/l of distilled water: glucose, 10.0; peptone, 5.0; yeast extract, 5.0; disodium phosphate, 2.7; citric acid, 1.15; pH 5.0), two different media-namely the modified HS media (ingredients of HS media except glucose dissolved in MSF) and mixed modified HS media (equal volume mixture of original and modified HS media)-were formulated. BC production with Gluconacetobacter xylinus was studied using the two above referred medium. Keeping HS medium as reference, effect of initial pH, glucose, ethanol, and organic acid concentration on BC production was also studied. It suggests that increasing initial glucose (up to 25 g/l) though improves BC production but results in poor BC yield above 15 g/l of glucose. However, addition of alcohol (up to 1%v/v) or citric acid (up to 20 mM) escalate productivity up to four and two times, respectively. In both modified HS media and mixed modified HS medium, BC production was four to five times higher than that of original HS medium. Even MSF alone surpassed HS medium in BC production. Scanning electron microscopy showed that BC microfibrils from MSF based media were several micrometers long and about 25-60 nm widths. X-ray diffraction patterns suggested the produced BC were of cellulose I polymorph.