American Whiskey

whiskey at a peak Is American Whiskey Better Than Ever? By Jack Robertiello

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Manhattan cocktail

he whiskey business breeds naturally happy people, the kind who, even as the week enters its 60th hour, like to reflect on their good fortune. So, it’s never a surprise when their view is sunny. But these days, despite overall economic worries, those folks making bourbon and rye seem especially pleased with their work. “I think we’re making the best stuff that’s ever been made,” says Harlen Wheatley, master distiller for Buffalo Trace Distillery, home of multiple whiskies, including Old Charter, the Antique Collection (George Stagg, Eagle Rare, Thomas Handy) and the Buffalo Trace Experimental series. “And that’s not just us; that’s everyone. Whiskies are better today because we have better control, consistency and understanding of the processes. Basically, our philosophy is that the best bourbon has not yet been made and we are constantly looking for the best ever.”

It’s a far cry from the dark days when vodka boomed and whiskies struggled to stay alive, when the industry consolidated to the point that you can now count on one hand the number of major American whiskey distillers. But in the past few years, sales have surged here and abroad; the quality of American whiskey is so high, and the prices so low. According to the Distilled Spirits Council, American whiskey accounts for 11.2% of total spirits market share in the U.S. and American whiskey consumption is up 11.2% since 2003. Within the category (since 2003), high-end premium offerings are up 25.5% and super-premiums have seen the most growth (71.1%) in volume.  

“We all make good bourbon now and they are quite a bargain,” says Wild Turkey master distiller Jimmy Russell. Russell cites as an example his own Russell’s Reserve 10 Year Old Bourbon, which retails for around $30, the price of many super-premium vodkas. The lower price point for super-premium products allows an entry into the category for new consumers. “If we weren’t made in the U.S., we’d probably be asking twice the price we’re charging today,” says Woodford Reserve master distiller Chris Morris. “The new consumers coming into bourbon are being introduced to the premium and super-premium whiskies which are high quality products – they are getting whiskies that are elegant, highly flavorful and nuanced.”

NEW MARKET GROWTH

Prices have played a significant part in American whiskey’s resurgence, but quality has been the key. The changes in approach that started with the introduction of specialty, small batch and single barrel bourbons in the 1990s has helped renew interest and excitement. This reawakening introduced new consumers to the essential, richly flavorful qualities of American whiskey, and even led them to neglected styles, like rye, which has recently escalated. The change has reestablished old brands such as Rittenhouse Rye and Four Roses, and helped smaller brands like Bulleit ignite. “The way Rittenhouse has taken off gives credibility to other whiskies; they work hand in hand,” says Heaven Hill’s director of corporate communications, Larry Kass. And the growth in new whiskies hasn’t been limited to major cosmopolitan markets; even in the traditional Kentucky market consumers are welcoming the new premium products, says Heaven Hill’s master distiller Parker Beam. As a result, whiskies at all price points are doing well, and consumers are rushing to try them, so much so that many new products disappear from retail and restaurant shelves quicker than suppliers can make them. Russell mentions that the Russell’s Reserve Rye introduced in 2008 was sold out before the year was over.

FROM 2003 - 2007:

25.5%

GROWTH IN HIGH-END PREMIUM VOLUME

11.2%

GROWTH IN TOTAL WHISKEY CONSUMPTION Statistics for U.S. Bourbon and Tennessee whiskey Source: Distilled Spirits Council of the U.S.

Things are going so well, in fact, that Whiskeyland is in the midst of a building boom. Jack Daniel’s is installing nine more fermenters at its Lynchburg, TN, facility; Heaven Hill, maker of Evan Williams, Elijah Craig and many other brands, recently boosted capacity by 50% at its distillery in Louisville; Wild Turkey is in the process of expansions that will nearly double its capacity in a few years; Maker’s Mark is preparing

for another growth spurt; and Jim Beam, the world’s largest bourbon maker, is spending $70 million on facility growth. American whiskey makers may have responded slowly at first to the consumer move to super-premium products, but opportunities still abound with only about 5% of bourbon volume at that rarified level. But they are certainly in the midst of a refocus there; Beam Global’s new whiskey, for instance, called , is being positioned as a modern alternative to traditional rye whiskies. “The packaging was purposely designed to be modern and sleek and present some intrigue to the brand using none of the traditional whiskey cues,” says brand manager Mara Melamed.

EXPERIMENTATION BOOSTS INTEREST

Perhaps as much as price and quality, experimentation has helped spur consumer interest as well. Distillers like Wheatley, Morris, Parker Beam and others have moved beyond age and strength differences to play with the basic elements of whiskey: changing the grain mix, altering fermentation and distillation methods, using unusual barrels to finish the whiskey. New iterations include the limited production Woodford Reserve Masters Collection, the most recent being the Woodford 1838 Sweet Mash while Heaven Hill offers the vintage Evan Williams and limited

rye rescue Around the country, on-premise establishments add rye to their mix

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ne of the reasons that whiskey makers are so happy these days is that bartenders across the country have taken up America’s homegrown spirits – bourbon and rye – as their latest go-to liquor. In fact, the cocktail revolution is responsible for the salvation and resurgence of rye, according to Larry Kass, director of communications for Heaven Hill, which makes Rittenhouse Rye. Kass credits spirits writer Dave Wondrich (“Imbibe!”) for convincing makers to relaunch the brand nationally after it was unavailable for a cocktail program Wondrich was working on in New York. Today, bartenders there and in other cities fight to get their share. The comeback of rye has helped spur interest in bourbon as an ingredient as well. Bartender Jamie Boudreau recently overhauled the menu at the Seattle landmark cocktail bar Tini Bigs, adding new cocktails like the Chocolat Cochon (bacon-infused Woodford Reserve, cherry, chocolate, amaro, and bitters) and the Red Hook (rye, Punt e Mes, and maraschino liqueur). At Arlington, VA’s Tallula and EatBar, bar whiz Gina Chersevani uses whiskey in her seasonal house creations like the Alchemist (rye, St.-Germain, Cointreau and fresh lemon). Sometimes the drinks that make their way onto menus have become so popular they’re hard to dislodge; customers launched a blog revolt to keep PDT in New York from shifting off their menu the Staggerac (a Sazerac style drink made with the high intensity, 140-plus proof George T. Stagg, Angostura and Peychaud’s Bitters and Edouard Absinthe). Other drinks on PDT’s menu last winter included the Harvest Moon (Wild Turkey Rye, Lillet Blanc, Laird’s Bonded Applejack, Green Chartreuse, bitters), and Benton’s Old Fashioned (bacon-infused George Dickel Tennessee Whisky, grade B maple syrup, Angostura Bitters). Quite a change from the days of bourbon and branch, but the whiskey makers seem pleased with all the attention and consumption.

In the process of making Buffalo Trace

edition Parker’s Heritage Collection, launched with cask-strength bourbon in 2007 and an extra aged marque in 2008. Old Forester now offers a vintage Birthday Bourbon after launching a commemorative Repeal Bourbon late in 2008 and Jim Beam released the limited edition Distillers Series in 2008 celebrating seven generations of distillers. The mad scientists at Buffalo Trace, known for their whiskey experiments, also have released a Buffalo Trace finished in Cabernet Franc casks, and just introduced Old Charter 101 proof. The American whiskey business has also started to reap the benefits of the cocktail revolution. The bartending world’s response to Wild Turkey’s introduction of Russell’s Reserve Rye, aged longer than Wild Turkey Rye, has been “tremendous,” says the brand’s global director Andy Nash. Russell credits mixologists for the rye resurgence, and the overall respect that all American whiskies are receiving: “What they’re doing has really helped the industry. I’ve heard the phrase: ‘Everything that goes around, comes around,’ and in my younger days it was Bourbon Sours, Old-Fashioneds and Manhattans….Now we’re seeing a big turnaround in cocktails using bourbon.” Some consumers are simply looking for real flavor in their beverage alcohol, says Bulleit Bourbon’s Tom Bulleit: “People are coming to whiskey, Bulleit and others, for the more sophisticated palate. They want that great, aged palate we offer.” Undoubtedly, the personalities in the whiskey business have helped cement consumers’ interest in a product where marketing and tradition aren’t at odds.

“Whiskies are better today because we have better control, consistency and understanding of the processes. Basically, our philosophy is that the best bourbon has not yet been made.” -Harlen wheatley, Master distiller for buffalo trace distillery

“I was at a tasting not long ago in San Francisco and a fellow came up to the table and asked me questions, lots of questions, about our products,” says Beam of Heaven Hill. “After a while he looked at me and said, ‘You’re a real person, aren’t you? I thought you were some fictitious character that some marketer thought up.’” Younger consumers, so skeptical of marketing ploys, have celebrated whiskey personalities like Beam and Russell for their contributions, especially at tasting events, restaurant-hosted whiskey dinners and when the distillers make their way to bars and retailers. And while much is made in the press of the new experiments and expressions, some of the strength of the category surely comes from keeping the core product the same, year in and year out, says Russell. He recalls the bad old days of the 1960s and 1970s, when major spirit companies forced bourbon makers to create so-called light whiskies to fight back against the growth of vodka and gin. The fact that no one seems to be seeking out such aberrations today is reassuring, but history probably also is a contributing factor in the mix that keeps whiskey makers focused on crafting the best spirits they can. n