The former Seagram's Distillery in Lawrenceburg, Indiana was the source of many "craft" whiskeys. |
Craft distilling grew through the 80s and 90s, but slowly. It took off as the 20th century transitioned into the 21st.
Other related phenomena were also occurring. Existing producers, now called ‘legacy,’ long moribund, finally saw exports grow in the late 1980s-early 1990s. By 2000, domestic whiskey sales were improving too. This was driven in part by growing interest in cocktails, especially pre-Prohibition and Prohibition-era cocktails that called for whiskey, often rye whiskey, a style that was nearly extinct.
Consumers, especially young ones, were changing too, becoming more interested in locally- and artisan-produced products of all kinds, looking for variety and authenticity. Craft brews and brewpubs are everywhere now. Craft distilleries scratch the same itch.
When whiskey sales collapsed 50 years ago, it was in part because whiskey was viewed as an “old person’s drink.” It was a victim of the generation gap. By 2000, young adults didn’t know they weren’t supposed to like whiskey. They also didn't think "whiskey" automatically means "scotch."
America was ready for craft distilling.
In 2003, Bill Owens founded the American Distilling Institute (ADI) to encourage and support small distillers. Owens, from Northern California, came to distilling from craft brewing. He founded and ran one of the first brew pubs and eventually became a writer and publisher of brewing books and journals.
Before he became involved in the beverage alcohol business, Owens was a well-known and highly regarded photojournalist/fine art photographer. In his most celebrated work, Suburbia (1972), he showed us the world most of us were living in as if we were seeing it for the first time.
ADI was Owens’ post-retirement career. As with craft beer, he dabbled in the craft itself but mainly became a publisher and promoter, staging conferences, expositions, and hands-on workshops. Today, many craft distillery origin stories begin with attendance at an ADI event.
With ADI, Owens had a new tool at his disposal that had not been available when craft beer was young, the internet. ADI hosted lively virtual discussions and information exchanges, welcoming participants from all over the world. A frequent topic: “what is craft?”
Owens approached craft brewing and, subsequently, craft distilling the same way he did his photography, with an evangelical zeal to share his often-unique personal vision. One of his first acts after launching ADI was to get in his car and drive to every new distillery he could find, taking pictures, talking to founders, and spreading the craft distilling gospel according to Bill. As time went on the industry would develop additional infrastructure, but ADI was first.
Back in the 17th century, the first American distillers made fruit spirits, then rum, and finally whiskey. The craft movement followed a similar trajectory. In addition to brandy, vodka opened doors for many but also caused problems, since it is so much easier and more profitable to just buy grain neutral spirit (GNS) rather than make it from scratch. Vodka is one spirit a factory can make better than an artisan.
At Greenbar in Los Angeles, Melkon Khosrovian and Litty Mathew showed that the best way to make ‘craft’ vodka is to buy GNS and put the ‘craft’ into natural and original flavor infusions. Others got to the same destination by making craft gin, similarly with sourced GNS but natural, often ‘estate grown’ botanicals.
Others glommed onto the fascination some people have with outlaw distilling, as dramatized on the “Moonshiner” TV shows. Legal moonshine, an oxymoron, found a market. The spirit itself is usually vodka, corn whiskey, cane spirits, or a blend thereof, often flavored and sweetened.
Inevitably, most distillers want to make whiskey. Some of the first craft whiskeys to catch the attention of enthusiasts were Old Potrero (Anchor) in California, Stranahan's in Colorado, Balcones in Texas, Hudson (Tuthilltown) in New York, and Woodstone Creek in Ohio.
Craft distilling’s sudden rise spawned a dark side known as ‘craft-washing.’ James Rodewald defined it in his 2014 book, American Spirit, as “labels designed to fool consumers into thinking that industrial products are coming from small, family-owned businesses.”
As craft-washing spread, transparency became an issue every craft producer had to consider. “Are you a maker or a faker?” Savvy drinkers wanted to know.
When Templeton Rye debuted in 2005 with a mature rye whiskey, it was obvious they had not made it themselves, even though their packaging and marketing made it look like they did. They had a distilling license, but it is easy to look that sort of thing up and their license was brand new. The picture on their web site labeled ‘our still’ was clipped from a German still-maker’s catalog. Templeton’s President, Scott Bush, refused to admit he didn’t make the whiskey, nor would he reveal who did.
Their story was that Templeton was the recreation of a famous rye whiskey made surreptitiously throughout that tiny western Iowa town during Prohibition and distributed all over the country by the criminal underworld. It was catnip for journalists. They even had a great-niece of Al Capone claim it was Uncle Al’s favorite.
The story never stood up to serious scrutiny, but the whiskey was terrific, a well-aged rye comparable at the time to Heaven Hill or Wild Turkey’s best. The origin myth might have been palatable if they had told it with a wink and a nudge, but they were always dead serious about it and engaged a whole town in their deception.
Eventually the Lawrenceburg, Indiana distillery now known as Ross & Squibb was revealed as the source. The whiskey, with an unusual mash bill of 95 percent rye and five percent barley malt, was created by Seagram’s as a blending whiskey. When the Templeton scam was exposed, Templeton settled several class action lawsuits for $2.5 million.
There is nothing wrong with bringing a product to market by sourcing whiskey. That has always been a way for entrepreneurs to create new products and brands. Just don't misrepresent it, especially to a customer who craves authenticity. We’ll talk about that more next time, as this looks like it will be at least a three-parter. If you missed it, part one is here.