Showing posts with label Knob Creek. Show all posts
Showing posts with label Knob Creek. Show all posts

Thursday, August 2, 2012

Jim Beam Is Up 11%, Single Oak Project Has 6th Release, And The KDA Has New Digs.

Here's a little news round-up from Bourbon Country.

Beam Inc. has reported its second quarter results. Sales are up and bourbon is why. In worldwide sales, Jim Beam itself is up 11 percent for the year, Knob Creek is up 9 percent, and Maker's Mark is up 29 percent. That's pretty incredible, but there is another Beam bourbon that is doing even better: Basil Hayden, up 33 percent.

Almost everything in Beam's portfolio is up. Effen Vodka is one notable exception. When Beam bought Effen Vodka from Sazerac three years ago, I said it was a mistake. Sure enough, Effen sales are down 14 percent, probably because Beam has lost interest in it since Beam now has Pinnacle Vodka, a much bigger brand and one that is not based on a vulgarity.

This month, Sazerac's Buffalo Trace Distillery will releases the sixth round of Single Oak Project bourbons. Twelve of these experimental bourbons are released each quarter. With release six, therefore, the score is 72 released, 120 to go.

Each release has a theme. This time, all twelve bourbons in the set are from Warehouse L, a masonry warehouse with concrete floors that many Tracians consider their best. The other common feature is low barrel entry proof (52.5% ABV). Since most bourbons go into the barrel at close to the legal maximum of 62.5% ABV, low entry proof is of great interest to distillers and aficionados.

The Kentucky Distiller's Association (KDA), of which Sazerac is not a member, is 132 years old but never has had a physical home. It now occupies a portion of Frankfort Barracks, a 141-year-old building that housed federal troops stationed in Frankfort between 1871 and 1876. It is listed on the National Register of Historic Places. The address is 614 Shelby Street, Frankfort, KY 40601.

In addition to offices for KDA's staff, which has ballooned to three people, it will also serve as information center and gift shop for the Kentucky Bourbon Trail tour.

Sunday, April 22, 2012

A Plea To American Whiskey Producers: Don't Give Up On Age Statements.


Recently, W. L. Weller Special Reserve lost its 7-year-old age statement. Before that it was Weller Antique (7 years), Evan Williams 1783 (10 years), Evan Williams black label (7 years) and others. Knob Creek has always been 9-years-old but the new Knob Creek Rye is NAS (No Age Statement). It hasn't happened yet, but Beam has gotten a new NAS label approved for Basil Hayden's, which has been 8-years old since its introduction 20 years ago.

What is an age statement? It is a declaration of the whiskey's minimum age that appears on its label. 'Minimum' means that the stated age has to be that of the youngest whiskey in the bottle. Older whiskey is okay but nothing younger than the stated age is permitted. Age statements are regulated by the Alcohol Tax and Trade Bureau, a branch of the U.S. Treasury.

In American whiskey, age statements are required for any product that is less than 4-years-old, so the absence of an age statement means the product is at least 4-years-old.

Only age statements on labels count. If the producer tells you the age of something, but it's not on the label, well, let's just say that's not the same thing.

For producers, age statements are a double-edged sword. Without them, the producer has more flexibility. Age, after all, is just a number. The maturity of the whiskey as reflected in its taste is what matters. These days, when most producers are struggling to meet demand, age statements can seem like more trouble than they're worth.

But there are good business reasons to keep using age statements. Whiskey enthusiasts are a small cadre but we buy a lot of whiskey. We like age statements. We know they aren't the only measure of a whiskey's quality or character, and we know older isn't necessarily better, but it's like any other information. Assuming it is factual and reliable, the more information you have about something, the easier it is to make a purchase decision.

It seems to be only American producers who are turning away from age statements. In the scotch segment we're seeing more, not fewer.

What companies forget is that if you tend to like, for example, bourbon that is more than 6 years old, you will look for age statements that give you that information when you are looking for something new to try, and ignore all NAS products unless you are already familiar with them. It is, therefore, often a criteria for someone who wants to try something new, a quick way to reduce the number of candidates. If you're a producer, don't you want that trial? Isn't attracting new customers usually one of the pillars of successful brand growth?

The producer counts on regular drinkers of the newly-NAS product to either not notice the change or not care. They may be right, but that doesn't mean going NAS is cost-free. To the extent that age statements are important to attracting new customers, you give up some percentage of your potential growth when you go NAS. Is that good business?

One hopes the companies know this and have just decided, for cost reasons, to set the bar for age statements a little higher, above 8 years, maybe, or 10. Let's hope that's the case because if producers have decided they can't risk age statements at any level, they're making a mistake that could be fatal to the continuing profitable growth of American whiskey.

Thursday, March 8, 2012

The Rye Renaissance Is Finally Real.

The 'rye renaissance' has been a popular topic in the media for several years, but even though it was getting a lot of ink, producers weren't inking a lot of additional sales. (See, "The Rye Revival Is A Mirage," here.)

That's starting to change. Many brands, such as Sazerac Rye (i.e., 'Baby Saz') and Rittenhouse Rye Bottled in Bond are on allocation and shoppers sometimes find empty shelves. Templeton Rye has struggled to get enough whiskey from its distiller in Indiana to meet demand. Now add Wild Turkey to the list.

As Wild Turkey introduces a new Wild Turkey Rye at 40.5% ABV (81° proof), it is letting people know that the 50.5% ABV (101° proof) version will be in short supply for the forseeable future. Wild Turkey also makes Russell's Reserve Rye.

Jim Beam, which produces more rye than anyone else, doesn't seem too stressed. It's even bringing out a new one, under the Knob Creek name.

Another brand that seems to have plenty is Bulleit Rye, which just launched a few months ago. It's the same Lawrenceburg, Indiana-made rye as Templeton and several other brands. You have to believe drinks giant Diageo, which owns Bulleit, has a priority claim on any whiskey Lawrenceburg has ready, but even mighty Diageo can't make fully-aged rye whiskey out of thin air.

You can bet the new owner of Lawrenceburg Distillers Indiana, MGPI, is turning the dial on the rye machine there up to 10. This is why the aging cyle makes whiskey production planners prematurely gray. A few years ago, producers were wondering if the rye boom was real. Now they're wondering if it's here to stay.

Wednesday, October 19, 2011

Knob Creek Rye, Coming Not So Soon.

I heard from a reader that, at a recent bourbon tasting sponsored by Beam Inc., a company rep mentioned that they are coming out with a straight rye under the Knob Creek banner. Currently, the Knob Creek line consists of two bourbons; the standard expression and a single barrel.

I have confirmed that the rumor is true, but the release is not imminent. Look for it sometime in 2012. It will be a straight rye whiskey, but no other details are available.

Monday, February 7, 2011

We Like Single Barrel Bourbons. Here's Why.

I've been telling you about Beam Global's Knob Creek Single Barrel since last July, when it was still a rumor. We had a taste of it with Fred Noe in September. Now it's finally in stores.

In addition to being single barrel, this new Knob Creek expression is 120° proof, which is 60 percent alcohol, whereas regular Knob is 50 percent. That's already high as most straight spirits products are sold at 40 percent.

But that's not our subject today. It's that other thing, 'single barrel.'

You probably know that single barrel is higher quality than something that's not single barrel, but do you know why?

The major American whiskey distilleries each fill between 500 and 1,500 barrels a day. Those barrels go into aging warehouses where they will sit for the next several years. As they fill so shall they dump and the major American whiskey distilleries each empty between 500 and 1,500 barrels a day too.

Modern distilleries produce a very consistent product off the still. All of the whiskey going into the barrels is the same but immediately it starts to change and become different. No two barrels of whiskey age exactly the same way.

There are several reasons for this. First, no two trees are exactly the same. The barrel is very much a natural product and White Oak is the wood of choice because of the favorable way it interacts with the aging spirit. Although most American-made whiskey is aged in Ozark Oak, some use wood from other parts of the country.

Second, no two warehouse locations age exactly the same way. Aging conditions vary according to the location and orientation of the warehouse and the location of the barrel within the warehouse. A barrel near an outside wall, near the top and on the south side will be exposed to a lot more heat, for example, than one in the center on a low floor.

The differences between any two barrels can be great but more often they are small and subtle. Still, producers typically want a consistent product so they mix the contents of hundreds of barrels together in a big tank. This erases those subtle differences. The whiskey being prepared for bottling is then compared to previous batches and if it isn't exactly the same, it is corrected through the addition of whiskey selected for certain characteristics. This is how most whiskey is prepared for bottling.

There is nothing wrong with any of it. People want consistency. They want the bottle of Jack Daniel's Old No. 7 they buy today to taste exactly like the bottle they bought last week or last year.

But back to the whiskey still in the barrel and those subtle differences. Does the existence of those differences mean some barrels taste better than others?

Yes, it does.

Old timers called them "honey barrels." They are exemplars of their type, perfectly balanced. They're rare, but not that rare. Theoretically, a single barrel product isn't necessarily a honey barrel. If single barrels were selected at random you would get the whole range of variation, from worst to best, but they aren't.

With non-single barrel whiskeys, small flaws are erased through dilution and the whole batch can be adjusted to better match the brand profile. With single barrels, once a barrel is selected there is nothing else you can do with it. There is no place to hide. Because of this, there is very little point in doing a single barrel product if you are not going to seek out the very best barrels of a particular vintage -- more than 9 years old in the case of Knob Creek.

With a single barrel whiskey, you get to taste exactly what the distillery's tasters tasted when they selected that barrel, but unlike them you never have to taste a bad one. Although Beam would never put it this way, they essentially cherry-pick the best of the best for single barrel and put the rest into the regular expression.

Another way to look at it is that this is whiskey in its natural state. That is especially true of Knob Creek Single Barrel because of the high proof, which is very close to barrel proof so very little water is added. This is as close to tapping a barrel as you can get.

Although there are many other single barrel bourbons about, Beam is the first to do one on the same platform as the original expression. All this makes Knob Creek Single Barrel a welcome addition.

Tuesday, September 21, 2010

First Taste; Knob Creek Single Barrel.

I've written about Knob Creek Single Barrel several times since rumors of it first reached me in July. Last Friday I finally had a chance to put some in my mouth. The details of this new release, and a picture, are here.

I was in Bardstown, Kentucky, last week for the annual Kentucky Bourbon Festival and the kind folks at Beam Global arranged for me to have my first taste of Knob Single Barrel poured by Fred Noe, on the back porch of his dad's house, which was also Jim Beam's house. It was a lovely, warm, late-summer day, so what could be better?

With us was Don McGrew, who works in Research and Development for Beam. How great a job must that be?

They'll do fine with this product because it is positioned as a step-up for current Knob Creek drinkers, just like Maker's 46 is positioned primarily as a step-up or change-of-pace for regular Maker's Mark drinkers. If either product happens to bring new drinkers to the brands that's great, but not the main objective. (It's also about controlling shelf-keeping units [SKUs], but that's a bit too inside, isn't it?)

Fred poured some regular Knob and some of the new Single Barrel. On nosing, the higher alcohol content of the Single Barrel was the first thing I noticed. On first sip, the Single Barrel seemed less flavorful than regular, but that was the alcohol bloom obscuring everything else. It opened up with a little water.

The two are very similar, as you might expect. The Single Barrel also bears a strong resemblance to Booker's, not surprising either as the specifications are very similar. (e.g., Booker's is barrel proof and Knob Single Barrel is nearly so.) There is an earthiness in regular Knob that I did not detect in the Single Barrel. It tastes very clean, like Booker's.

The primary appeal of Knob Single Barrel will be its higher 120° proof (60% alcohol). Think of it as getting 20 percent more whiskey, instead of water. Since that's about the price premium they're really the same price if you think of it that way. You can drink it neat (very carefully) or dilute it to taste. If you're an on-the-rocks drinker the Single Barrel will stand-up much better, although at 100° proof regular Knob is no slouch.

The other attraction is the opportunity to experience slight variations from bottle to bottle (i.e., barrel to barrel). For that you will need to buy several different bottles, but I'm sure the folks at Beam are okay with that.

I asked Fred and Don if the profile for selecting barrels for Single Barrel was different in any way from regular Knob. They said no except with regard to color. They looked for darker whiskey to help distinguish the two bottles on the shelf.

In conclusion, Knob Creek Bourbon is a good thing and Knob Creek Single Barrel is even more of a good thing. Our work concluded, we three just drank and told stories for the next two hours. A good day.

Thursday, September 16, 2010

A Shot of Knob Creek Takes On New Meaning.

At exit 117 on I-65, the Shepherdsville exit, one of the attractions listed on the highway sign is the Knob Creek Gun Range, where the next machine gun shoot is scheduled for October 8-10.

Shepherdsville and Bullit County are also proud of the nearby Jim Beam Distillery at Clermont (exit 112), where Knob Creek Bourbon is made.

Knob Creek is a real creek. The gun range is on it. The distillery is not.

Saturday, September 11, 2010

Knob Creek Single Barrel Confirmed.

As we first reported two months ago, and as Beam Global has finally confirmed, Knob Creek Single Barrel Reserve will hit the market.in January 2011.

The note I got yesterday from the Beam PR Department put it like this: "As you know, twenty years ago, Booker Noe – Jim Beam’s grandson – introduced bourbon drinkers to the world’s first super-premium, small-batch bourbon: Knob Creek. Now, after 20 years, the #1 selling super-premium bourbon is ready to introduce bourbon drinkers to a new friend."

That's not exactly how I remember it. Blanton's, from what is now Buffalo Trace, was "the world’s first super-premium, small-batch bourbon." It was single barrel and didn't use the term "small batch," which Beam introduced, but really Blanton's was first.

Even within the Beam family Knob wasn't first, Booker's own eponymous brand was. It had a limited release, proved successful, and was followed by the simultaneous release of Baker's, Basil Hayden's and Knob Creek; marketed collectively as the Small Batch Bourbons Collection.

But I digress. Here is the rest:

"And just as Knob Creek is aged patiently for nine years (as Booker wanted), we had to be patient in sharing this exciting news with you… But now we’re ready.

"You've heard the rumors, but here's the official confirmation:

"Come January 2011, Knob Creek Single Barrel Reserve will hit the market. Hand-selected, barrel-by-barrel, this extraordinarily smooth bourbon promises to capture Knob Creek’s rich, mature flavor and bold, nine-year aged bourbon character."

They've promised a tasting sample in a couple of weeks.

Although I kid about the awkward way it has rolled out, this is an exciting new product release and I'm looking forward to it. This is the first single barrel product from Beam. Single barrel products are fun because they let you taste what the distiller tastes, the contents of a single barrel instead of a mixture of many.

They apparently are still not ready to confirm that Knob Creek Single Barrel Reserve will be 60 percent alcohol (120° proof), instead of 50 percent (100° proof) like regular Knob, as we reported on August 22.

Saturday, July 17, 2010

Knob Creek Single Barrel Still A Rumor, Except In Virginia.

Last month when I was researching the new Jim Beam six-grain bourbon, the folks at Beam hinted that the next new product would be something in the Knob Creek line. Then word came (not from Beam) that a Knob Creek Single Barrel is presently on the shelves in Virginia. From another source (also not from Beam) I learned that Beam has built a single barrel bottling line at the distillery in Clermont, Kentucky.

Also from Kentucky comes a report that retailers there have been offered a Knob Creek Single Barrel but they have to buy the contents of an entire barrel to get it. (That's 200+ bottles.) Several brands offer such a 'buy a barrel" program to retailers. Buffalo Trace has been the leader in this.

With the Buffalo Trace program the retailer gets to pick the barrel, usually from a pre-screened selection of three or four. Beam is not giving retailers that option, at least according to the report from Kentucky. In Virginia, the bottles come with a neck hanger that says the barrel was specially selected for them by Fred Noe.

Beam is unwilling to officially confirm or deny any of this, but it seems increasingly likely that a national roll-out of some kind of Knob Creek Single Barrel is imminent.

Tuesday, March 9, 2010

How To Taste What Rye Does For Bourbon.

The classes I teach for I Wish all involve tasting, so to simplify things we always do the classes in bars, i.e., a licensed premises. It's good for the bars because they get some business on a usually slow night and get some people into the place for the first time who might like it and come back.

Although I might make some suggestions, the bars usually pick what we're going to taste. We've been using good bars who have made good choices. Then I tailor my remarks based on what they select. I'm not sure why Rock's Lincoln Park picked the four bourbons they did, but it made for an interesting lesson in the use of rye as the most common flavor grain in bourbon.

We started with Elmer T. Lee Single Barrel, which is made from Buffalo Trace mash bill no. 2. It has an average rye content. While they won't reveal the exact percentages, it's probably about 15 percent rye. Next we tasted Knob Creek, which is the Jim Beam mash bill and also about 15 percent rye. Then it was Buffalo Trace itself, which is their no. 1 mash bill, and lower, about 8 percent rye, so with ETL and Knob we're tasting two very similar mash bills but two different distilleries and two different yeasts, and a couple years more age in the Knob. Finally, we tasted Bulleit, which is about 35 percent rye, the highest of any bourbon.

One thing you notice is that low rye bourbons taste sweeter. They're not actually sweeter, but the rye tends to mask some of the sweetness with its distinctive spice and floral notes. By reducing the rye or substituting wheat, a milder flavor grain, you make way for the sweetness to cut through.

Tuesday, November 10, 2009

Steve Cole, Whiskey Professor

I had lunch today with Steve Cole, Whiskey Professor.

Cole is quick to admit that "whiskey professor" is a marketing term. He doesn't have a PhD in Whiskey nor is he tenured faculty at Whiskey U. He is an employee of Beam Global and his job is more generically known in the industry as brand ambassador. Beam chose the whiskey professor title, according to Cole, because his job is education, not sales. He teaches consumer and trade audiences about whiskey generally and the Beam Small Batch Bourbons Collection specifically.

The Small Batch Bourbons Collection consists of four brands: Knob Creek, Booker's, Baker's and Basil Hayden. The biggest seller of the group is Knob Creek and most of the time, that's the brand Cole and the other two whiskey professors talk about. He was wearing a Knob Creek fleece pullover when we met.

Steve Cole grew up in Sioux City, Iowa, and went to college at Middle Tennessee State, where he discovered whiskey. His roommates happened to be from Lynchburg and patronized their local brand. Rebelling against that peer pressure, Cole became a Maker's Mark drinker.

In the course of post-graduate job seeking, Cole worked as a bartender and fell in love with that profession. He moved to Chicago and began tending bar at an upscale joint on the North Side that had a good whiskey selection. Fear of appearing unknowledgeable to his patrons fueled his desire to learn all he could about bourbon, scotch and other whiskeys. One day about three years ago, one of those customers happened to be a Beam brand manager and a new career was born.

During the next phase of his whiskey education, Cole was put to work at Beam Global distilleries in Kentucky and Scotland. Suddenly he was working beside one of his idols, Fred Noe, then digging peat on Islay. Heady stuff.

In addition to making presentations at whiskey shows, whiskey professors answer questions submitted to the Knob Creek web site.

As more and more audiences clamor for information about whiskey and other spirits, and the public schedules of people like Fred Noe and other distillers and blenders become overbooked, more and more companies are recruiting people like Steve Cole for the brand ambassador role. Diageo, for example, has its Masters of Whiskey, who perform a similar function.

As the saying goes, nice work if you can get it.

Thursday, July 2, 2009

Will You Survive the Knob Creek Drought?

This is part two of a three part series examining recent moves by Deerfield-based Beam Global Spirits and Wine. (Part one is here.) In this installment, we find the company, unable to meet consumer demand for one of its key products, bragging about that fact.

The Knob Creek brand is less than two decades old. It always has been a 100° proof, 9-year-old, Kentucky Straight Bourbon Whiskey. The only way to make 9-year-old whiskey is to put it in barrels and wait 9 years. This obvious fact makes it possible to run out, which Beam has done.

That doesn’t mean we have to wait 9 years for more. In November, the next batch will be of-age and ready. It won’t take very long to dump, bottle and ship a bunch of it just in time for Christmas.

Beam makes a lot of whiskey but sells nothing older than Knob Creek, so it doesn’t have extra stocks of old whiskey sitting around that it can divert. There will be no more Knob Creek shipments until November.

A shortage like this is to some extent a choice, in that Beam saw this coming and might have managed it differently, such as through allocation. In that sense you can say the shortage was manufactured, but that doesn't mean it's not a real shortage. It's just that having it happen in this particular way was a choice.

Some other brands in recent years, faced with a similar challenge, have gone NAS (no age statement). Beam chose to keep the age and accept the shortage. If all goes well, Knob shortages will become a regular occurrence.

One thing they are doing that may undermine their positioning is this idea that the currently-aging whiskey magically becomes Knob Creek precisely on its 9th birthday. In whiskey as in people, maturity isn't just a number.

None of this means you can’t go out today and buy a bottle of Knob Creek Bourbon. Beam hopes you will. Retailers and distributors still have inventory, just no way to replace it. This happens with products all the time, though usually it’s just a production planning hiccup and the shortage doesn’t last six months. This shortage is caused by the implacability of the whiskey aging process combined with better-than-expected success for Knob Creek.

Beam hopes attention generated by the shortage will cause people to rush out, snag the rare remaining bottles, empty the pipeline, and then queue up to ensure that the next batch sells out even faster than this one did. If that sort of marketplace manipulation offends you, grow up.

To fan the flames, Beam is sending “I survived the drought” t-shirts to consumers, while trade audiences are receiving an empty, sealed Knob Creek bottle with the message, “thanks for nothing,” a backhanded way to say “thank you for helping make Knob Creek so successful.”

While the Red Stag introduction and the Knob Creek campaign are both potential winners, the future for Effen Vodka may not be so rosy, but this is Beam so hedge your bets. Learn why tomorrow.

Friday, December 14, 2007

More Knob

My post Tuesday attracted some attention at Beam Global. They wanted me, and you, to know that, "Knob Creek is a product of such quality and aged a full 9 years that demand has exceeded any imaginable supply forecast. We are now managing allocations very closely as we are product constrained and will certainly not be lowering price. We are doing everything possible not to gouge our loyal consumers, but in some key markets we have raised price and will continue to do so to control overall demand."

I specifically mentioned Knob Creek in Tuesday's post because sightings of higher prices on Knob were reported to me by several consumers in different markets around the country. My point then was that, historically, Beam has been one of the more aggressive companies at using short term promotional deals to gain floor stackings and drive volume. A few years ago, a brand like Knob didn’t have enough volume to make that worthwhile. Now it does.

Most companies will run promotional deals just after a price increase to take some of the sting out for regular customers. In saying that, I didn't intend a knock on Beam or Knob Creek. That's just good business, especially for building volume. Beam does that as well as any and better than most.

When the tight supply situation for well-aged bourbon was first developing, about two years ago, some industry leaders expressed concern to me that using price to control demand might be counter-productive, as it risked stifling the current boom. They suggested that allocation was a better solution. In fact, we're seeing a combination of allocation and price increases.

An argument can be made that American straight whiskey has long been underpriced. It certainly remains, at least for consumers within the USA, the best value in fine aged spirits.

Tuesday, December 11, 2007

Like Day Follows Night

...price increases follow supply shortages.

Because of the whiskey aging cycle, sales increases can't always be matched by supply increases. It is a nice problem to have and American whiskey producers haven't had it for a long time, but they do now. More and more brands are on allocation and we're starting to see higher prices at retail.

Two things we probably need to get used to are: less availability of long-aged whiskey at bargain prices, and higher prices for American whiskey across the board.

One bright spot is that we probably can expect to see more frequent deals on mainstream premium brands such as Knob Creek. With Knob Creek especially, since that is how Beam operates.

What we are seeing now is cyclical, though that may be small comfort since this expansion could be a long one. If China, India and some other markets develop as they are expected to, there could be supply pressure on whiskey for the next decade.

Producers are moving cautiously, in terms of both price and production increases, so a major backlash seems unlikely. At least here in the USA, American whiskey remains a bargain compared to other aged spirits. Higher prices will have an effect but it is hard to predict what that effect will be.