Friday, July 14, 2017

Was Fleischmann's the First American Gin?



In the latest edition of The Bourbon Country Reader, we look at the tenure of Ferdie Falk and Bob Baranaskas at what is now Buffalo Trace. Baranaskas had been president of Fleischmann's Distilling prior to he and Falk buying the Frankfort distillery in 1983.

The Reader article provides a little background about the Fleischmann company, which claimed to be the first American producer of gin. Our good friend in Australia, Chris Middleton, disagrees.
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Maybe it is a moot point, Fleischmann’s claiming to be America’s first gin distiller. Maybe it was their advertising hubris or category ignorance that led to such an erroneous statement. They were not the first distiller of gin in America. Neither were they the first domestic brand of gin. Not by a country mile. I checked Sazerac, where it states on their Fleischmann's site ‘…and America had its first distilled gin as well.’ I suppose because they put this statement on the front of their label, that’s sufficient evidence of its veracity.

Some years ago I looked into the US gin/geneva history. It is a difficult category to get a clear fix on the historical consumption, imports and local production before Prohibition.

Gin distilleries, also distilleries producing gin (e.g. molasses spirit, rectified with juniper) established themselves along the east coast by the 18th century. Immigrating Dutch distillers were likely early users of rye spirit; whereas British-American distillers were accustomed to using barley malt or molasses as the spirit base. The base doesn’t legally matter as it’s juniper flavored ethanol that essentially defines the category. No doubt small household distillers and apothecaries (with small compounding stills) were making gin much earlier. Juniper cones (berries) were a staple herbal/botanical of American apothecaries since the early 1700s, probably earlier as native juniper (Juniperus virginiana) was substituted for desiccated European cones/berries (Juniperus communis).

Before the Revolutionary War, gin was a popular spirit in the Colonial era i.e. 1760 & 1770s. An imported British habit and custom. Even during the War years gin had strong patronage, both domestic and imported. Gin was perceived and also consumed as a health tonic or elixir, especially among females. Ironically, its early usage was as an abortifacient.

While much of this flavored new-make was imported from England (gin) and Holland (geneva), many domestic distilleries were also serving the local communities, from Vermont (Middleburg Falls gin distillery) to Georgia (Henry Snow, distiller, made Georgia Geneva from 1767 in Savannah). Meanwhile, in the mid-States, Hezekiah Beers Pierrepont bought John Livingston’s gin distillery on Joralemon Street on the East River frontage, Brooklyn, in 1787. During the war, a fire destroyed the Livingston distillery. Pierrepont refurbished the distillery as the Anchor Gin Distillery. For 32 years he sold the Anchor gin brand in the tri-State area. It survived until 1819.

Late 18th and early 19th-century distilling manuals and grocery instructions always included a section of recipes for different types of gin (cordial, Old Tom, genever, French genevier, juniper spirit, etc.). In 1791, a Report to the Secretary of Treasury stated ’the consumption of genever, and gin, in this country, is extensive. It is not long since distilleries of it, have grown up among us to any importance.’ Three years later New England gins were described as ‘equal if not superior to imported’ (American Museum & Universal Magazine, 1794).

Even by 1806, the American Manufacturer Report estimated that of the 15 million gallons of spirit consumed annually, three million were of domestic rum and gin. They described "large gin distilleries in cities." As rectifiers were starting to dominate the cities (Philadelphia, Baltimore, New York), I have wondered how much grain and molasses was diverted into gin rectification and compounding. The old quadfecta of local spirits distilling was rum, whiskey, gin and fruit brandies (apple, peach); grape brandy was an import. There was much imported English gin & Hollands geneva; the bulk rebottled for sale by local agents and wholesalers, such as NYC’s A. M. Binninger’s Old London Dock Gin in 1858. Binninger's also produced the first bottled Kentucky bourbon whiskey brand in 1846.

Fleischmann’s may not be the first; although they probably are the oldest gin brand made in America today. Black Friars Distillery is the oldest working gin distillery in Britain since 1793. They make Plymouth Gin. Lucus Bols is the oldest genever brand in the Netherlands, they started distilling in 1575. Assuming Fleischmann’s has been distilling and compounding gin since 1870, except during Prohibition, that makes Fleischmann’s America’s oldest continuous gin brand, which I believe is the case.

Wednesday, July 12, 2017

Why You Have Never Heard of Woodinville Whiskey Company



It was announced today that the Woodinville Whiskey Company of Woodinville, Washington, has been acquired by LVMH, the French luxury brands conglomerate.

Unless you live in the Pacific Northwest, you probably have never heard of this seven-year-old craft distillery run by Orlin Sorensen and Brett Carlile. That is because although their products are well-distributed in Washington, they are unavailable everywhere else. “Our goal is for our brand to have roots and be a significant factor in the American whiskey category in our region before we move outside,” says Sorensen.

Significant? How about competitive with Woodford Reserve Bourbon, an international brand owned by Brown-Forman. In Washington State, Woodinville's bourbon sells about as well as Woodford.

The bottle shown above, from 2013, was young but showed great promise. These days, their lead offerings are a house-made bourbon and rye aged for a minimum of five years in 53-gallon barrels. “These two products have been our goal since Brett (Carlile) and I started the distillery in 2010,” says Sorensen. “We always felt that if we could produce a truly handcrafted, quality product from grain to bottle of a mature age, and offer it at a reasonable price, the rest would take care of itself.”

Sorensen sees age as a competitive advantage. “The craft whiskey market is getting real crowded. A $50+ bottle of 6 month old whiskey is going to have a tough time against a 5 to 6 year old craft bourbon or rye at $40.”

As always seems to be the case when a craft distillery is acquired, the principal attraction for the buyer is a successful brand. Everything else follows that. Since Woodinville is a grain-to-glass operation, changes won't happen quickly. Sorensen and Carlile will continue to run things. 

Why do people sell? For many entrepreneurs, that is always the goal. For others, where the principals want to retain control of the business, and the new owners want them to, the incentive is release of capital. If everything you have is tied up in your business, it is a great relief to get some of it back, especially on generous terms. 

Diversification, you know.

In the case of whiskey, there are unique considerations. Because of aging and taxes, it takes a lot of capital to grow a whiskey-making business. The most successful new distilleries face the greatest challenge because they need so much capital to exploit their full potential. A rich partner that knows the business and has a proven track record of enhancing brand value is just about the perfect partner to have.

Woodinville did good.


ALSO: Susannah Skiver Barton does a great job covering this story on the Whisky Advocate Blog.

Sunday, July 9, 2017

Maker's Mark Private Select Needs a Better Name



Many producers have private barrel programs, in which a customer selects and buys an entire barrel of mature whiskey. The contents of the barrel are bottled, usually with a personalized label, and delivered to the customer through the usual channels. Liquor stores do it. Bars and Restaurants do it. Private individuals do it too, often as part of a group. It is a fun experience and an easy way to 'make your own whiskey.' No special skills are required. You just need money and time.

But the Maker's Mark Private Select program is so unlike those other private barrel programs, the generic name doesn't do it justice. With the Maker's program, you aren't just choosing a whiskey, you actually customize it.

Here's the story.

In 2010, Maker's Mark had a problem. Its new corporate masters, the Jim Beam folks, were demanding innovation, i.e., new products.

New products are the lifeblood of most businesses. They generate buzz and increase top-of-mind awareness, which increases sales. Shareholders like innovation and, at that time, Beam was part of a public company.

But Maker's Mark has always been different. Although they had messed around with packaging and proof, they had really only ever made one product, aged-to-taste Maker's Mark bourbon. It was the only product made at the Loretto distillery and it was made nowhere else. They did things other people didn't, such as moving barrels around in the warehouses (called 'barrel rotation'), for the express purpose of creating a consistent product barrel-to-barrel, bottle-to-bottle, glass-to-glass.

They had been doing these things for all 50 years of their existence. They weren't good at making news. That's why company president Bill Samuels Jr. had to dress funny.

As he and other company representatives said repeatedly, "We already make the best bourbon we know how to make. How can we make it better?"

The answer was to make something that was still Maker's Mark, not better, just different. Thus Maker's 46 was born. Maker's 46 is a finished whiskey. It is mature Maker's Mark finished in barrels into which specially-prepared French oak panels have been added. The finishing takes about nine weeks.

Private Select takes the 46 concept a bit further.

When they were working on 46, they did a lot of experimentation with different woods and different ways of toasting them to bring out different flavors. Each experiment was given a number. The one they liked best was number 46, hence the name.

But then they realized, along with their partners in wood at the Independent Stave Company, that one wood prepared one way was just the beginning. What if you developed other woods? What if you combined them? What if you let customers combine them? How many different whiskeys could you make?


With Private Select, you have five different woods (all oak, U.S. or French, toasted differently), which you mix and match on a board such as the one above. Maker's 46 is one of the options. You work with samples of Maker's finished with each of the woods, so it's a blending project. What you create and taste in the blending session should be very close to the way your final barrel will taste.

They've been doing it since 2015. Forty-one barrels were created in the 2015-2016 season, for accounts in seven states. During the 2016-2017 season it was 239 barrels in 18 states plus the District of Columbia and Japan. They are doing about one a day now.

Suggested retail is $69.95 for a 750ml bottle (cask strength), which gives you a rough idea of how much it costs, since a barrel should yield about 250 bottles. Right now the program is available only to commercial accounts, not private individuals or groups.

There is more to tell, but that should be enough to explain why it needs a better name.

Wednesday, July 5, 2017

Utah's 'Zion Curtain' is History, or Not


Salt Lake City restaurant owner Joel LaSalle in front of his 'Zion Curtain.'
(Rick Bowmer, AP)
If you have never bought a drink in a Utah restaurant, you may not believe this is true but it is ... or, rather, was.

They call it the 'Zion Curtain,' a barrier that prevents drinkers in Utah restaurants from seeing their drinks being made. Why? Because Utah wants to protect children from being seduced by the glamour of bartending. This has become even more onerous for restaurants in recent years as bartending has become, well, more glamorous.

But now a new law is dragging Utah kicking and screaming into the mid-1930s.

The rule has only ever applied to restaurants that allow children. No children, no problem, so places that don't admit anyone under 21 have never needed them.

The partitions have not always been with us. They were only enacted in 2009 and applied only to new restaurants, built after the law went into effect.

As you might suspect, it's a Mormon thing. The Mormon faith forbids the consumption of alcohol. Caffeine too, though apparently Starbucks doesn't have to protect children from the glamour of barista-ing.

As a result of the 21st Amendment to the Constitution, which repealed Prohibition, the beverage alcohol business in the U.S. works in a way that is almost exactly opposite to how all other laws involving commerce behave. It turns the Commerce Clause on its head in many, though not all ways.

Alcohol in Utah and some other states is similar to abortion in many of the same states, in that they can't ban it altogether so they just try to make it as inconvenient and unpleasant as possible for you to exercise your legal right.

Don't get me started on 3.2 beer.

Although no other state has anything like the 'Zion Curtain,' every state has its own legal peculiarities when it comes to alcohol. Convenience stores in Indiana may sell beer but not cold beer.

In virtually all other forms of commerce, the U.S. is a single market. The same rules apply everywhere. With alcohol, it is 50 different markets. That complexity and inefficiency is built into the price of every alcoholic beverage you buy.

But remember, it's for the children.

Just because the 'Zion Curtain' is tumbling down, that doesn't mean the Utah Department of Alcoholic Beverage Control (UDABC) will stop being a pain in the ass. Now all restaurants, including those built before 2009, will have a choice of either creating a 'no kids zone' at least ten feet from the bar, possibly through the use of a railing or half-wall, or they can keep the partitions. Restaurant owners have five years to comply, assuming Utah doesn't change the rules again.

The UDABC is also warning restaurants that the changes they plan to make must be approved before they are implemented, or they could lose their license. Some of the people who were smashing their partitions last week may need to get out the Crazy Glue.

Saturday, July 1, 2017

Falk and Baranaskas, Saviors of Buffalo Trace, Belong in the Hall of Fame



Imagine a world without the Buffalo Trace Distillery.

If you think that prospect is too horrible to contemplate, say a quiet word of thanks to Ferdie Falk and Robert Baranaskas, without whom that great distillery might be a state office complex today.

In 1983, veteran spirits execs Falk and Baranaskas bought the nearly-idle Albert Blanton Distillery in Frankfort from Schenley and formed a new company called Age International. They ran it successfully during some of the worst years for the American whiskey business since Prohibition itself. They enjoyed a nice payday when they sold it to their Japanese partners, who immediately sold the distillery to Sazerac, itself one of the few companies in those days making money selling American whiskey. Sazerac renamed it Buffalo Trace and the rest is bourbon history.

Ancient Age kept the brands it made there: Blanton's, Ancient Age, Elmer T. Lee, and others. Buffalo Trace still makes them, under contract.

For the whole story, including the likely reason they aren't in the Hall, you need to read the new issue of The Bourbon Country Reader.

The Sazerac Company figures in this issue's other story too, as the company has submitted a patent application for its Old Fashioned Sour Mash process, which differs from conventional sour mash in that it does not use backset (i.e., stillage).

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Friday, June 16, 2017

Tom Bulleit, Great Guy, But Not an Entrepreneur



Under the "Icons of Entrepreneurship" banner, the INC.COM headline says this: "The Unsung Hero Behind Bulleit Bourbon."

It is about Betsy Bulleit, her marriage to Tom, and their "third and fourth children," Bulleit Bourbon and Bulleit Rye. It is a fluff piece, written by the brand's PR agency.

I like Bulleit Bourbon (a product of Four Roses) and Bulleit Rye (a product of MGP of Indiana). They are excellent whiskeys. And I love Tom Bulleit. I always enjoy visiting with him. He is a great guy. I don't know Betsy, but the happy marriage angle is great too. I'm totally happy for them.

But Tom Bulleit is not an entrepreneur.

In 1995, Bulleit, a lawyer in Frankfort, Kentucky who had some business in Japan, created two new bourbon brands, 'Bulleit' and 'Thoroughbred,' for the booming Japanese market. He sold Bulleit to Seagrams in 1997. They reformulated the whiskey and redesigned the package. Mostly, they liked the name, which is pronounced 'bullet.' Thoroughbred fell by the wayside.

Tom was an entrepreneur for two years.

Selling your company after two years is surely one measure of entrepreneurial success, but you stop being an entrepreneur when you stop entrepreneuring. For the last 20 years he has been a brand ambassador. Brand ambassador is a noble calling and Tom is a very good brand ambassador but he is an employee, like Fred Noe is at Beam. It is not his company.

The brand owner is Diageo, world's largest drinks company, which never can resist gilding the lily.

Friday, June 9, 2017

MGP Ingredients Announces the Re-Launch of George Remus Bourbon



A lot has been written about MGP Ingredients, a company that makes commodity whiskey at a distillery in Lawrenceburg, Indiana. The company is primarily a neutral spirits distiller. It has been mentioned here a few times.

MGP is changing, gradually and not always smoothly, but profoundly. They are cautiously adding a branded products component to their commodity offering.

That is what makes their re-launch of George Remus Bourbon, announced this week, significant. George Remus Bourbon is a tiny Cincinnati-area brand that MGP acquired last year, not long after it was launched. That product used whiskey made at MGP's Lawrenceburg, Indiana distillery. The new version, according to the company, is a different formulation ("a smoother, more complex whiskey") in a new package.

Liquor brands that celebrate criminals (e.g., Popcorn Sutton, Clyde May) are inherently problematic, considering the fraught history of alcohol in both legal and illegal forms. The real George Remus was a very successful bootlegger at the beginning of Prohibition, but is that any reason to buy his namesake whiskey? Guys like Remus are only in it for the money, after all, so his standards were not very high. If it had alcohol in it, that was good enough for him.

But he was a colorful character. If you want to know more, check out William Cook's biography, George Remus, King of the Bootleggers

"We’re whiskey lovers and are very proud to offer this updated styling of George Remus Bourbon," says Andrew Mansinne, Vice President of Brands, MGP Ingredients. He is a recent hire in a brand new job. Til American Wheat Vodka is MGP's other branded product.

"This is a complex bourbon whiskey that showcases our signature, high-rye profile and the talent of our distillation team, who have artfully crafted George Remus Bourbon into a beautiful and bold spirit inspired by George Remus’ rebellious and entrepreneurial character," says Mansinne.

Available this summer in select markets (Ohio, Kentucky, Indiana, Kansas, Missouri, Wisconsin, Nebraska, and Minnesota), George Remus Bourbon is made at "MGP’s historic, 170-year-old distillery in Lawrenceburg, Indiana." It is good to see them featuring the "historic, 170-year-old distillery," an attribute that will have resonance long after the novelty of the brand's name fades.

Suggested retail is $44.99 for a 750 ml bottle.

6/13/17: I received this image of the new package from MGP's PR firm. It's an improvement.