For special events, you can park at the Kentucky Railroad Museum in New Haven and ride the train to Log Still Distillery. |
For special events, you can park at the Kentucky Railroad Museum in New Haven and ride the train to Log Still Distillery. |
What to try next? |
A perfect example of this paradigm is Jim Beam Black Label. It is significantly better than white label, a little higher proof, usually available in any decent-sized store, and the upcharge is modest. It goes for about $25 a bottle. In most stores, it will be right next to White Label.
In the Heaven Hill family, you can start with the standard Evan Williams Black Label, but the 1783 expression is a little better, a little higher proof, and in that same $25 range.
These step-up expressions used to have age statements in the six- to eight-year range, but 'better' still usually means more age, which is evident in side-by-side taste comparisons.
If you want to get away from mega-producers, consider The Representative, a straight bourbon from Proof and Wood, a smallish independent bottler. It won a big award from Whisky Magazine. Yes, the liquid is from MGP, but it's bottled in 20-barrel batches at 115° proof, aged at least 4 years, and widely available at about $50.
I'd like to include more small producers on a list like this but it's difficult because they tend to have limited distribution. There is also the price. No small producer, whether they're a distiller or not, can compete with Beam Suntory, Heaven Hill, or Brown-Forman on price. I used to tell people the challenge was to find something better than Evan Williams Black Label for the same or a lower price. I no longer say that because it can't be done! If you ever want to drink anything other than Evan Williams Black Label, then you'll have to get used to paying more for whiskey that isn't necessarily that much better.
So, back to the mega-producers. Like Jim Beam Black Label, Beam Suntory has other entry-level step ups hiding in plain sight. Basil Hayden is Beam Suntory's version of a high-rye bourbon, but it's the same distillate as Old Grand-Dad. Like Basil, the standard Old Grand-Dad expression is 80° proof, but right there on the shelf next to it is the much better, and only slightly more expensive, Old Grand-Dad Bonded. If you're really lucky, next to that will be the even better Old Grand-Dad 114.
Another old reliable is Brown-Forman's Old Forester. It is the product that launched the company in 1870. It is the same recipe as Woodford Reserve. They make a lot of noise about their limited editions, but standard Old Forester is a solid, full-bodied bourbon, at 86° proof, for about $25, with the step-up to 100° proof for just a few dollars more.
Which brings us to the two Gems of Lawrenceburg that never disappoint, Four Roses and Wild Turkey. Four Roses Single Barrel is about $50, but that's the one you want. Wild Turkey 101, bourbon or rye is hard to beat at about $25.
This advice, I should repeat, is for people just discovering American whiskey as something to drink. It won't enhance your credibility on Instagram.
But if you have some suggestions for bourbons or ryes that meet the "Step In, Step Up" criteria, feel free to include them in a comment below.
Warren William and Alice White in "Employee's Entrance" (1933). |
"Pre-code" refers to movies made between 1927 and 1934, before strict enforcement of the Motion Picture Production Code (also known as the Hays Code). Pre-code movies featured more sexual innuendo, profanity, promiscuity, and other controversial themes than later films. Such licentiousness would not return to celluloid until the 1960s.
I love pre-code movies.
This one, "Employee's Entrance," is the story of a big city department store struggling to survive in the early years of the Great Depression. It has an "Upstairs/Downstairs" quality, depicting owners and management but also front-line employees.
When "Employee's Entrance" was released in 1933, National Prohibition was still in effect, yet when ruthless department store president Kurt Anderson shares a drink with Polly, a store employee, he pulls from his desk a pint of Old Taylor Bourbon.
Later in the film, the store throws a big party for employees. Champagne flows freely. No one comments on Prohibition one way or the other. During the party, many of the characters become happily, or not-so-happily, drunk.
After Roosevelt and the Democrats swept the 1932 elections, it was assumed Prohibition was finished, but it was still in effect when "Employee's Entrance" was released.
During Prohibition, Old Taylor was sold, legally, "for medicinal purposes only." The bottles looked like this.
A Prohibition medicinal pint of Old Taylor Bourbon, in its original box. |
After I watched "Employee's Entrance" a few weeks ago (and I recommend it if you get the chance. It's a hoot), I captured the above picture and posted it on Facebook. All I wrote was, "From 'Employee's Entrance' (1933). Look what they're drinking." That began a conversation about the bottle's provenance, initially assuming it was a legal Prohibition pint, then noticing the difference between the bottle in the picture and the known Prohibition pint above.
Then someone provided the answer.
A pint bottle of Old Taylor bourbon, made in Canada, and likely smuggled into the U.S. for illegal sale. |
Celebrate Spring with a friendly putting competition at Welter’s Folly! |
Image created with GPT-4 |
Joseph Lloyd Beam, Master Distiller, Bardstown, Kentucky. (date unknown, probably late 1920s) |
Yeast, and the different characteristics a particular strain can impart during fermentation, is a fundamental part of bourbon-making.
Today, most yeast is created in a lab and manufactured in a factory, but before Prohibition making yeast was a crucial part of a whiskey maker's skill set. Back then, "making" yeast meant mixing up a special mash and using it to catch and propagate a suitable strain from a wild source. Yeast is a living organism, a type of fungus. It thrives in a watery environment, eats sugar in liquid form, and metabolizes it into ethanol and carbon dioxide. All of the alcohol you can drink is made by yeast. Like all living organisms, yeast can mutate and change. When mutations render it unfit, it has to be replaced.
At most legacy distilleries, those that started before the modern "bourbon boom," the yeast they use has connections to that earlier era. Therefore, the genealogy of yeast is essentially that of yeast makers. At distilleries such as Jim Beam, Heaven Hill, Four Roses, Yellowstone, Maker's Mark, Barton, Stitzel-Weller, Early Times, and many others, that meant one or more members of the Beam family.
Yeast mutates and humans adapt. Although the Beams all started from the same place, with the same yeast mash recipe, and were all taught the same organoleptic standards, each distiller in each generation made their own subtle adaptations after years of practice and would have passed their way of doing things on to the next generation.
Joseph L. "Joe" Beam was considered the dean of American whiskey makers on both sides of Prohibition. He was the son of Joseph B. Beam, whose grandfather was Jacob Beam, the ancestor from whom all whiskey-making Beams are descended. When Four Roses was revived after Prohibition, at a new distillery in Shively, they hired Joe Beam and bragged that he was bringing "the famous Beam yeast."
Joe Beam had seven distiller sons. Jim and Park Beam were his first cousins. His older brother, Minor, also a distiller, had several sons in the business. It's hard to find a distillery of that era that was not touched by a Beam.
We know from Booker Noe, Jim Beam's grandson, that the Jim Beam yeast was caught by Jim on his back porch in Bardstown as Prohibition was ending and he prepared to build a new distillery. That version of the Beam yeast is known for a "foxy" characteristic most noticeable in the brand's standard white label expression.
Jim and Joe Beam's uncle was Jack Beam, who started Early Times, and although his only son followed him into the business, there was no third generation. That line died out. It's unknown if the yeast strain they used was preserved and passed on to the people who revived Early Times after Prohibition. It is known that the yeast Brown-Forman used for Early Times was not the Old Forester yeast.
When Park Beam's son, Earl, left the Jim Beam Distillery in 1946, he took that Beam yeast with him to Heaven Hill, replacing the yeast Joe's son Harry had been using. Earl tweaked it, as did his son and successor, Parker Beam. They did not, apparently, like that "foxy" characteristic, which is not evident in any Heaven Hill products.
According to family lore, Joe Beam received most of his training from his much older brother, Minor, who also trained Will McGill, a friend of Joe's who became Pappy Van Winkle's distiller at Stitzel-Weller. As journeymen, Joe and Will worked at Minor's distillery at Gethsemane, today's Log Still Distillery. They also worked together at Tom Moore's distillery, today's Barton 1792.
The Stitzel-Weller yeast that made its way to Maker's Mark would have originated with Joseph B. Beam and probably went through Minor to get to Will McGill, and from him into the hands of Elmo Beam, Joe's firstborn, who would already have been familiar with his father's version. That Pappy Van Winkle gave the yeast to Bill Samuels Sr. is known, but what Elmo actually used is not. No doubt he had his own ideas about such things.
His brother, Charlie, was distiller at the Pennsylvania distillery that became Michter's. Charlie trained Dick Stoll, who made the bourbon that became A. H. Hirsch Reserve.
After Joe Beam restarted Four Roses it was sold to Seagram's. His grandson, another Charlie, spent most of his career with Seagram's, where he developed the Eagle Rare Bourbon brand before finishing his career at Four Roses in Lawrenceburg. No company did more for whiskey yeast than Seagram's, which archived more than 300 different strains.
Minor's son, Guy, worked at several different distilleries, including Heaven Hill, Fairfield, and Cummins-Collins. During Prohibition he was a distiller in Canada. Guy had two distiller sons, Burch and Jack. A third son, Walter, who was better known as Toddy, operated a liquor store in downtown Bardstown that still bears his name. Jack worked for Barton. Steve and Paul Beam, who run Lebanon's Limestone Branch Distillery, are descended from Guy.
I once asked Craig Beam, Parker's son and successor, if he thought anyone in the family could make yeast the old-fashioned way, capturing it from a wild source. He knew he couldn't, he said. His grandfather, Earl, taught him how to propagate Heaven Hill's yeast, to make enough for the fermenters, but not how to make it from scratch. When Heaven Hill moved to Bernheim, they switched to dry yeast rather than add a yeast room, which the rebuilt distillery did not have.
Craig said he thought if anyone could make it from scratch, it would be Baker, but when I asked Baker, he just laughed.
Sautéed mushrooms, quickly cooked in butter and extra virgin olive oil, then finished with a flambé of bourbon. |
Mushrooms are tasty on pizza, battered and deep fried, or stuffed with crabmeat. Maybe you like grilled portabellas with polenta, or shiitakes in a stir fry. Or perhaps you'd enjoy a tasty side-dish like the one pictured above. Bourbon-flavored mushrooms? Sure. Mushroom-flavored bourbon? Maybe not.
But when white oak intended for whiskey barrels is seasoned naturally, mushrooms of a microscopic sort, usually referred to as fungi, play a vital role. Scientists call it fungal colonization. It is an early part of the wood’s natural decomposition process.
During seasoning, a succession of different fungal species send out roots (hyphae) that penetrate the wood structure and release hydrogen peroxide, a natural bleaching and oxidizing agent that helps break the wood down chemically, softening tannins and caramelizing hemicellulose among other salutary effects.
A fresh-cut oak is about 60 percent water by weight and needs to get below 18 percent for the coopers to do their thing. First in the pool is Aureobasidium pullulans, one of the species of common mildew, the same black stuff you clean off your shower tiles. As the wood dries it becomes inhospitable to pullulans which pulls out (okay, dies) and is replaced by another type that thrives in the slightly drier environment. One after another a succession of different fungal species (eumycota) and sub-species each have a go at it, including the one from which the medicine penicillin is made.
By studying fungal colonization in American white oak (Quercus alba), scientists proved the superiority of a traditional cooperage practice–air drying–that was widely abandoned in the United States after World War II in favor of kilns. Kilns remove moisture effectively, but they stop the biological processes, fungal and bacterial, that make many of the wood’s flavor components available for absorption by maturing spirit.
In the first stage of natural seasoning, if humidity and other weather variables are favorable, fresh-cut logs are simply left in the field for days or weeks. From there they go to a stave mill, close to the forest, where they are roughly broken down into staves and head pieces. From there they are shipped to the cooperage, where they are neatly stacked in the yard, fully exposed to the elements. There they will remain for anywhere from three months to two years, and in some cases even longer. Often wood that is given only a short time outside is finished via kiln.
As you can probably guess, it’s a cost issue. You pay a premium for long natural seasoning. A good question to ask when someone tries to sell you an expensive whiskey is, "How long were your barrel staves air seasoned?”
Don't be surprised if they have no idea what you’re talking about.
Russia has its own whiskey, but they want ours. |
Despite sanctions intended to deprive Russia and Russians of any Western goods they may want, many things are getting through, including scotch and bourbon. The mule satisfying Russia's whiskey jones is our NATO ally, Latvia.
According to DW, the German public broadcaster, in the first nine months of last year, Russia imported almost €244 million ($266 million) worth of whiskey products. Three-fourths of that came through Latvia, according to figures published by the Russian news agency RIA Novosti. In second place was another Baltic country, Lithuania, which sold Russia €27 million worth of whiskey.
Latvia also has become Russia's largest source of wine.
According to the Latvian government's official statistics portal, its exports to Russia were worth more than €1.1 billion last year. More than half of that was for alcohol and vinegar.
Latvia and Lithuania have small, domestic beverage alcohol industries, but most of what they ship to Russia comes from Western companies registered in the Baltics.
What about sanctions? The head of a Russian spirits importer says it merely required a paperwork change. "While documents used to say that imports to Russia simply went through Latvia or Lithuania, now the Baltic states appear as the destination of the export, " he told the news agency. "Deliveries to Russia are then made from there."
Some observers say selling whiskey to Russia does not technically violate sanctions. Routing shipments through the Baltics, with Baltic companies handling all the of re-shipment to Russia, is mostly about Western companies concealing their Russian business to protect their reputations.
According to the London-based Moral Rating Agency, Pernod Ricard is one of the largest suppliers of alcoholic beverages to Russia. Pernod owns Chivas Regal, Ballantine's, Royal Salute, The Glenlivet, Aberlour, Jameson, Powers, TX Whiskey, Rabbit Hole, Smooth Ambler, and Jefferson's. Pernod says it is trying to get out but, as just about everyone involved in this bemoans, it's complicated.
Latvia was admitted to NATO in 1999, along with Bulgaria, Estonia, Lithuania, Romania, Slovakia, and Slovenia, all states formerly dominated by Russia. They and other former Russian satellites, such as Poland, tend to be the most enthusiastic supporters of Ukraine, but many, such as Latvia, also have large Russian-speaking populations and many business and cultural connections to Russian entities. It's ironic, but also complicated.
Bulleit American Single Malt Whiskey is bottled at 90° proof (45% ABV). MSRP is $60 (750 ml). |
Are you excited to try the new Bulleit American Single Malt? Well, here's a hot tip.
Bulleit didn't make it.
Diageo, which owns Bulleit, is the biggest distilled spirits maker in the world. They operate two large Kentucky distilleries and one in Tennessee, but they bought this whiskey from someone else.
They won't say from whom.
Here is what they will say, but only if you ask.
Fitting the American Single Malt category guidelines, Bulleit American Single Malt was distilled by 1 distillery in Kentucky.
Due to contractual obligations with our supply partners, we cannot share specific details, but as has always been the case, we work very closely with our distilling partners to ensure that Bulleit is made to our exacting standards and specifications.
For further detail, we factor in working in partnerships with local distilleries to meet the growing demand for our whiskey that cannot be serviced by production at our distilleries in Shelbyville, KY or Lebanon, KY. Our distillers work closely with our distilling partners to ensure that Bulleit whiskey is made to our exacting standards and specifications.
When we were first exploring Bulleit American Single Malt, the Lebanon, KY distillery was not operational and our Shelbyville, KY distillery was just getting started producing our signature Bulleit Bourbon at full capacity so we looked to an outside contractor to distill this product to our exacting specifications.
We look forward to distilling and aging Bulleit American Single Malt at one of our world class facilities in the near future.
So where was Bulleit American Single Malt distilled and aged? Likely suspects include Beam Suntory, Sazerac, Heaven Hill, and Bardstown Bourbon Company. Another possibility is Newport's New Riff, which has been making malt whiskey since 2014 and released its own single malt last year. It seems unlikely any of Kentucky's smaller distilleries is the source, as they wouldn't be able to produce enough for Diageo's needs.
Malt whiskey is not something American distilleries normally make, so the list of suspects is limited.
Diageo's statement mentions Shelbyville and Lebanon, but what about Cascade Hollow (AKA George Dickel) in Tennessee? Nicole Austin, distiller there since 2018, made malt whiskey in Brooklyn for King's County and at the Tullamore Distillery in Ireland. Capacity may have been an issue, as Cascade is now producing rye whiskey in addition to Tennessee whiskey, but if they really were "first exploring Bulleit American Single Malt" several years ago, as they claim, kicking that assignment to Austin seems like a natural.
Diageo likes to sing the "made to our exacting standards and specifications" song, but it seems more likely they sought out and found whiskey that was ready to go when they decided to enter the American Single Malt space. Once again, Diageo is playing catch-up with a me-too product in a space, American malt whiskey, that all the bigs are suddenly barreling into, lest they let crafts get a leg up. Diageo is, of course, also the world's #1 scotch producer, a fact they are not touting.
Since when does America make malt whiskey? Are we at war with Scotland now?
Once again we are left with this guessing game. Bulleit Bourbon itself has been sourced whiskey since its inception, distilled initially by Four Roses, and later by others, always with oodles of obfuscation. Only recently has Shelbyville's Bulleit made its way into bottles. Lebanon is still a few years out. Bulleit Rye has been sourced from Indiana's Ross & Squibb Distillery (AKA MGP) since day one. Diageo may be the world's largest distilled spirits producer, and the world's largest whiskey producer, but when it comes to American whiskey, they are mostly a non-distiller producer (NDP). A follower, not a leader.
The last paragraph in their statement says they intend to make the single malt themselves "in the near future." That wording suggests they are not distilling malt whiskey at any of their American distilleries right now, which means Bulleit Single Malt will remain NDP for at least the next five or six years.
As I wrote here almost exactly ten years ago, "There is no shame in being a non-distiller producer and if the actual producer won't let you reveal their identity, that's understandable too. The shame is in not being honest about it."
So, if you're interested in American Single Malts, maybe find a craft distillery near you that is actually making one, from scratch, in a still, like a real distillery.
The building across 3rd Street from Ollie's is now the Republic Academic Center, part of Spalding University. |
Photograph from the building's 1982 National Register application. My Pontiac may be in the parking lot. |
Daniel David Beam, 1941-2015 |
I just happened upon this happy picture. It's from 2014, I think. That smile belongs to David Beam, the last Beam distiller at Jim Beam. (The last one with the last name of Beam, that is.) The picture was taken at Tom's Foolery near Cleveland, with two fermenters from the Michter's Barrel-a-Day Distillery.
There is a lot to unpack in this simple picture.
David was the son of Carl 'Shucks' Beam, grandson of Park Beam. Park was Jim Beam's younger brother. When the Beams resumed distilling after Prohibition, Jim and his son, Jere, ran the business while Park and his sons, Earl and Shucks, made the whiskey.
David was born in the master distiller's house on the grounds of the Jim Beam Distillery at Clermont in 1941. He and his older brother, Baker, succeeded their father at the distillery, which ran on a 24-hour schedule. Baker had the day shift and David had nights. He worked there for 38 years, retiring in 1996.
Around the time he retired, David learned that the Michter's Distillery in Pennsylvania was being liquidated. He knew they had two nice Vendome pot stills, at 500 gallons and 350 gallons each, and associated fermenters and other equipment. It was a complete distillery capable of producing one barrel (53 gallons) of whiskey per day.
David decided he wanted it, though he wasn't sure why, so he went to the auction, bid on it, and won. Then he got his three sons and some buddies, borrowed a couple trucks, and trekked to Pennsylvania to bring it all back to Kentucky. He set it up in a shed at the My Old Kentucky Home Motel in Bardstown, which he co-owned and managed with his wife, Belle. He had an apartment there too, where he lived when he wasn't at his farm outside of town.
Although he and his sons talked about it, David never put the equipment to use. In 2011, he sold it to Tom and Lianne Herbruck and helped them set it up and operate it at their craft distillery in Chagrin Falls, Ohio. They made bourbon and applejack. This picture was taken during one of David's visits there. David's grandson, who the Herbrucks hired as an apprentice, was there too.
In 2015, the Herbrucks sold the Michter's equipment to the new Michter's (i.e., Chatham Imports), for installation at their Fort Nelson facility in downtown Louisville, where it has been ever since. The Herbrucks got another old still. They still make whiskey and applejack in Chagrin Falls. On June 29th of that year, David Beam died peacefully at his farm outside of Bardstown. He was 74.
My first office in Louisville was on the top floor, left side. Right across the street was my favorite lunch place. Both are still there. |
My recent post about Five Brothers Bourbon and the early history of the Heaven Hill Company brought to mind my own early history with the company and the Shapira family.
Early in 1978, with snow still on the ground from one of the worst winters in memory, I moved from Columbus to Louisville to take a new job. Although the job was supposed to take me on to New Orleans, that part fell through, but I liked Louisville and the company, Fessel, Siegfriedt & Moeller Advertising (FS&M). Ed Fessel was retired by then, but Fred Siegfriedt and Rudy Moeller became my mentors in business and life.
Like most Louisville ad agencies, FS&M had a bourbon client. In our case it was Heaven Hill. I didn't work directly on their business, but in a small agency you're exposed to everything. I don't recall ever meeting any of the founding five brothers, but Max Shapira, Ed's son, was in our offices usually several times a week.
It wasn't much business, some small space magazine and newspaper ads for Evan Williams Bourbon, the occasional sales brochure, point-of-sale display, or label design. I recall when the art department started work on packaging for a new bourbon called Elijah Craig.
Heaven Hill's bourbon, I soon learned, did not have the best reputation, especially in Bardstown, where it was made. It was described as 'oily.' The current distiller, a member of the Beam family, was aware of the problem and in the process of correcting it, I was told, but these things take time. Although Max's father and uncles owned and ran Heaven Hill, the whiskey had always been made by Beams.
Heaven Hill made whiskey exclusively, bourbon mostly, a little bit of rye, and of course blends. I was in the room when the first label designs for Heaven Hill Gin, Vodka, and Rum were presented. All of the bourbon companies were being forced by changing market conditions to either sell or diversify into other, non-whiskey categories. The Shapiras had no interest in selling, so they diversified.
Fred and Rudy were terrific bosses, and I learned a ton from both of them. Fred had some amazing stories about his Army service in Europe at the end of WWII. I spent the most time with Rudy, often in the car driving to meetings with clients and prospective clients. That's where I got my first Kentucky education, as he told me what crazy thing happened in this or that house as we drove through various small towns.
Max Shapira, who was then in charge of marketing, went on to run Heaven Hill, only recently transitioning to emeritus status.
After a few years I left FS&M for another Louisville company with a distillery connection. This time it was Brown-Forman, where I worked on various brands but not Jack Daniel's which, although owned by Brown-Forman, was entirely run from Tennessee.
I left Kentucky in 1987 but by then the Commonwealth had its hooks in me.
Despite those facts, Heaven Hill's beginnings are primarily the story of the five Shapira brothers, David, Ed, Gary, George, and Mose. The brothers ran a chain of small department stores founded by their father. Called the Louisville Stores, they were mostly located in Kentucky's small towns (not in Louisville). They were a lot like today's dollar stores.
One day, the brother who ran the store in Bardstown was invited to invest in a new distillery there. He agreed, believing whiskey was a good investment now that it was legal again, but he expected to be a passive investor because he didn't know the first thing about the whiskey business. He wrote the check and went back to running his store.
Prohibition ended in the midst of the Depression and money was scarce. Soon the brother and his siblings were approached with a new proposal. The other original investors were all over-extended. They intended to sell the company if they could, close it if they couldn't. Would the Shapiras care to buy the whole thing?
Barry Maurice Berish, 1932-2024 |
Berish worked for 40 years, 1957-1997, at Jim Beam Brands, rising to the position of Chief Executive Officer in 1982. Under his leadership, Beam went from a one-brand company to the largest distilled spirits producer in the United States, 5th largest in the world. In 1987, he was instrumental in the company's acquisition of National Distillers, tripling the size of the company, and also acquired several brands from Seagram’s Co. that grew the portfolio by an additional 35 percent.
I became involved with Beam about the time of the National acquisition and was often in their offices in the Chicago suburb of Deerfield, working on various marketing projects until about 1994. After that, although I worked with some of the Deerfield-based PR people, I was no longer involved with Beam marketing and my writing about bourbon put me more in contact with Beam folks based in Kentucky.
Berish's official obituary talks about his "warmth and charisma," but I remember him differently. I say "remember," although I had very little direct contact with him. I knew where his office was, at the end of hall, right next to that of Rich Reese, his right-hand-man and successor. I saw both of them from time to time. Reese would poke his head into our meetings now and then. I don't recall Berish ever doing even that.
Around the office, Berish was considered volatile, capricious, and best avoided. He was very much in charge. Beam folks called it the "Barry and Rich Show" because their opinions were the only ones that mattered. I heard him blow up a time or two, but always from a safe distance. I was just one of dozens of anonymous suppliers who came and went. I wasn't on his radar and from what everyone told me, that was a good thing.
So, this is not much of a personal remembrance, but Barry Berish made a mark as one of the industry titans of the late 20th century. He helped shape the business as we know it today. When he became Beam's leader, companies like Jim Beam and its chief rival, Jack Daniel's maker Brown-Forman, were struggling with the decline in whiskey sales that had begun a decade earlier. The task before both companies, and others, was to transition from whiskey companies into broad-portfolio distilled spirits companies. Beam, led by Berish, succeeded where many others did not.
Julian P. Van Winkle Jr. (bottom, right) and his tank crew, on their way to liberate the Philippines, October 1944 (from But Always Fine Bourbon). |
The American Craft Spirits Association (ACSA) and Park Street today presented highlights from the 2023 Craft Spirits Data Project (CSDP) at its annual economic briefing. Introduced in 2016, the Craft Spirits Data Project evaluates performance and trends in the U.S. craft spirits industry.
Key findings and highlights include the following:
U.S. craft spirits market volume reached 14M 9-liter cases in retail sales, growing at an annual rate of 6.1%. In value terms, the market reached $7.9 billion in sales, growing at an annual rate of 5.3%. While there was still growth in 2022, it had slowed considerably from 2021, when craft spirits volume grew by 10.4% and value by 12.2%. U.S. craft spirits market share of total U.S. spirits maintained a 4.9% share in volume and increased value share to 7.7% in 2022, up from 7.5% in 2021.
The number of active craft distillers in the U.S. grew by 2.4% over the last year to 2,753 as of August 2023. Similarly, growth slowed from the year prior, which reported an increase by 17.4%. Active craft distillers are defined as licensed U.S. distilled spirits producers that removed 750,000 proof gallons (or 394,317 9L cases) or less from bond, market themselves as craft, are not openly controlled by a large supplier, and have no proven violation of the ACSA Code of Ethics.
Despite strong economic challenges, craft producers have consistently found value in reinvesting in their businesses. The total amount invested in the U.S. craft spirits segment increased by 6.5% year-over-year to $880 million. Employment numbers within the U.S. craft market also continued to increase post-pandemic, with 27,368 full-time domestic employees.
Home states still represent a critical sales opportunity. Craft spirits sales remain almost evenly split between the home state (47.4%) and other states (52.6%) in 2022.
While export growth was slower (up by 58% in 2021), exports provided an important runway for growth in 2022, up by 4.3% to 171,000 9L cases and surpassing pre-pandemic heights of 155,000 9L cases in 2019. However, the category is still recovering from the impact of tariffs and have not reached pre-tariff levels seen in 2017 at 566,000 9L cases.
The American Craft Spirits Association is the only registered national non-profit trade association representing the U.S. craft spirits industry. Launched in 2003 by former McKinsey consultants, Park Street is a technology-enabled services company that helps emerging and established alcoholic beverage suppliers and brand owners cost-effectively and securely scale and manage their businesses.
A 42-inch diameter column still at Diageo's Bullit Distillery. |