Since I reproduced Brown-Forman's press release last Friday, verbatim and without (much) comment, I'll give Diageo the same courtesy and refrain from commenting until a later date.
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Claiming the integrity of Tennessee whiskey is “under
attack” Brown-Forman’s Jack Daniel's asserts the only way for Tennessee whiskey
to be a “premium product representing a world-class standard and utmost
quality” is for it to be aged in new oak barrels. Interestingly,
according to the website of Brown-Forman owned Early Times whiskey,
the brand is aged and barreled in “used oak barrels”. Therefore, by their
logic, Brown-Forman has deemed its own product inferior.
Despite being a competitor to Early Times, Diageo has rushed
to Early Times’ defense. George Dickel Master Distiller John Lunn
provided perspective on the issue. “At George Dickel we use new oak
barrels, but that is because we choose to make whiskey that way. We don’t
think there should be a law that says this is how we, or anyone else, have to
make whiskey,” explained Lunn.
Diageo firmly believes a single company should not be able
to unilaterally determine the definition of an entire category. At its
base, it is anti-competitive and protectionist. Diageo supports a return
to the flexibility that Tennessee whiskey distillers have had for the past 125
years, up until last year when Brown-Forman convinced the Tennessee legislature
to define Tennessee whiskey as the Jack Daniel’s recipe.
Guy L. Smith, IV, Executive Vice President, Diageo North
America, and a former resident of Tennessee said, “Brown-Forman’s sleight of
hand legislation they managed to get passed last year, which many refer to as
simply ‘The Jack Daniel's recipe law,’ creates an anti-competitive situation
that will stifle innovation from skilled Tennessean distillers, both large and
small.”
Brown-Forman’s assertion that rejuvenated barrels produce a
lower quality product is false and the billions of dollars that consumers spend
across the world on scotch and other whiskeys that are commonly aged in
rejuvenated barrels is a testament to that. The process of rejuvenating
barrels is a technical and sophisticated practice and years of wood industry
science have shown the maturation of whiskey in rejuvenated barrels produces
the highest quality liquid.
Continued Smith, “We feel that allowing distillers
flexibility within a general set of guidelines helps create a thriving and
competitive Tennessee whiskey industry. And that is in the best interest
of all distillers, large and small, as well as the state of Tennessee.”
Semantics. But there is no doubt Diageo is up to something. Otherwise, why would they care?
ReplyDeleteAs usual, Diageo is just looking out for the little guy, like when they jack up their Scotch prices in the "war on flippers." Two thoughts: (1) maybe they "found" some reused barrel old whiskey they want to sell as Tennessee whiskey, or they want to introduce Johnnie Walker Red Tennessee Whiskey aged at Stitzel Weller; (2) now I sort of want to go buy some Jack Daniels.
ReplyDeleteRed coats red label the British are coming to tell us what...
ReplyDeletemore a statement than a comment
No one is stifling jack. If you want to make whiskey with rejuvenated barrels, do it--just don't call it Tennessee whiskey. Bait, switch, two points!
ReplyDeleteDanz: "Johnnie Walker Red Tennessee Whiskey aged at Stitzel Weller." My family wondered why I suddenly burst out laughing. Nice one.
ReplyDeleteDiageo has to have something in mind, otherwise why all the argument over the ability to use the title? They can obviously make whiskey with used barrels, they just can't call it Tennessee Whiskey. So...what's the deal?
It's cost cutting, plain and simple. Diageo wants to lower their costs and improve margins. That said, if they can produce a quality product with used barrels, let them! The market will decide.
ReplyDeletePhrase of the day: "wood industry science."
ReplyDeleteLife's too short to give money to Diageo. Buy whiskey and anything else, frankly, from people who behave with honesty and integrity. That obviously leaves Diageo out. Just say "no". Too much good stuff out there.
ReplyDeleteI agree with Chuck's comments on this. It all boils down to business and marketing. Watering down the meaning of "Tennessee Whiskey" via a legislative lobbying action is a marketing tactic. In the bigger scheme of things it's part of a business strategy for the Asian market and elsewhere. It's the "great game" from history reincarnated in the business template - in this case booze. Why do you think we conjured up a war with Spain to wind up with the Philippines, Guam etc.? - these were naval coaling stations for sea routes to China - the big Asian/Chinese market that we were eager to get into and beat the Brits, Dutch, Spanish, Portuguese and Czarist Russians (not to mention the sugar industry in Cuba where the thing started with the USS Maine blowing up which provided a good excuse to declare war). It's business. Why did we abet strife in Colombia which lead to the creation of Panama and then the building of the canal? Naval strategy and merchant shipping efficiencies - business! I worked in Africa many moons ago, and back then the better hotel bars carried Jack and Johnnie Walker, so that could be an angle also. With today's market more global than before, all of this shouldn't come as a shock.
ReplyDelete