Friday, November 9, 2012

Indiana Distillery Is Crucial To MGPI's Success.

The distillery in Greendale, Indiana, continues to interest whiskey enthusiasts, who know it for such products as Bulleit Rye, Templeton Rye, Redemption Rye, George Dickel Rye, Smooth Ambler Old Scout Bourbon and Rye, Redemption Bourbon, New Holland Beer Barrel Bourbon, Wm. H. Harrison bourbon, Chattanooga whiskey, and others.

The distillery is now owned by MGP Ingredients, Inc. (MGPI) which, as a publicly-owned company, is much more transparent about its operations than was the previous owner.

In the company's report of third quarter 2012 results, released yesterday, the lead headline says a "strong contribution" from the Indiana distillery "offset a reduction in sales for lower-value industrial applications."

"The decline in industrial sales for the quarter was substantially offset by growth in our premium spirits," said Tim Newkirk, President and Chief Executive Officer. "So, while our third quarter alcohol sales were relatively flat, our profit profile actually improved due to a stronger contribution from beverages.”

The report further explains that "post-acquisition progress continues at the Indiana distillery. Production rates have more than doubled since the company assumed ownership in December 2011. Capital improvements and cost reduction programs, including a switch to natural gas, are expected to further increase manufacturing capacity at a lower cost per unit."

“We’ve made great inroads with our line of premium spirits this year," said Newkirk, "despite the fact that most of the important year-end order activity for 2012 took place before we acquired the facility. Our new beverage sales team is encouraged by the high level of interest among our key customers.”

Whiskey enthusiasts in particular want to know MGPI's plans for Indiana going forward, to which Newkirk offers this tantalizing clue. "In premium spirits we’re pursuing beverage innovations, including new mash bills, flavor extensions, and barrel aging techniques."


Josh Feldman said...

LDI has been making some excellent rye and also some really nice high-rye Bourbon. I just tried their "40%" Bourbon product in both 5 year and 14 year ages when sampling the Smooth Ambler Old Scout and Very Old Scout lines and they were really nice. Red hots, mint, violets, olives - salty-sweet.

M Lange said...

I really like a few of the Willett single barrel rye's that are being released from LDI distillate. I had a 3 year old version two years back and was shocked at how good it was so young, and I have also enjoyed the 4 and 5 year old versions I've had. Just over $30 for a 110 proof rye is a pretty good deal, especially when compared to how others price the LDI juice (read: Templeton).

SteveBM said...

M Lange - agreed 100% about Williet. I was surprised at how much I enjoyed the 3yr rye. This year, $30 for a 5yr, 110 proof rye couldn't be more perfect for me, especially when its of the LDI profile. I've been hitting this hard at my local retailer for months now.

Josh - I'm trying the OS 19yr soon. Looking forward to seeing the affect that age has for that one.

Thanks for sharing this news, Chuck. Glad to hear of their plans for the future.

Chuck Cowdery said...

A small correction. The MGPI distillery actually straddles the boundary between Greendale and Lawrenceburg. I mistakenly thought it entirely in Greendale.