The extraordinary reports coming out of the Balcones distillery in Waco, Texas may yet be seen as the first of many such scenarios as venture capitalists set their sights on the craft distilling industry. The distillery founder, Chip Tate, has refused to attend board meetings with the venture capital group that owns a majority stake in the company; the VC group has, in turn, accused him of what amount to terroristic threats. Whiskey-lovers are up in arms, fearing the outcome for this iconic craft distillery; the Twitter hashtag #nochipnobalcones is spreading.
Here’s what’s happened. The distillery was established — indeed, was literally built — by president and head distiller Chip Tate in 2008 and has subsequently become one of the flagships of the U.S. craft scene internationally. With demand for the Balcones range rising, Tate needed to increase capacity and in, 2013, he and second round investor Michael Rockafellow accepted a substantial offer from a group headed by Greg Allen, along with a number of smaller investors, which bought out Stephen Germer (Balcones’ initial investor), giving them a majority stake in the company.
Allen’s background is with his family’s food processing business. Prior to that he worked in Goldman Sachs’ mergers and acquisitions department and as an attorney specializing in venture capital financing and emerging growth companies.
It appears that a combination of differing philosophies as to future strategy, a clash of personalities, and concerns over the rising costs of the distillery expansion has resulted in a deterioration in relations between Tate and the new board, with them moving to significantly reduce his role within the company he founded. As a result of this, Tate refused to attend board meetings.
On August 22nd, the boardroom battle ended up in court, where judge Gary Coley granted a temporary restraining order enforcing a 90-day suspension on Tate. According to the board, his “unconscionable and reprehensible” behavior could delay the $10 million distillery expansion project. They also alleged that Tate had threatened the life of chairman Greg Allen and suggested he would rather see the distillery burn than have it wrested from his control, claims which most commentators feel were made in the heat of the moment and are hardly credible.
While Allen has made some documentation available to the court, the restraining order has gagged Tate, preventing his side of the story to be heard. (For the record, we have not attempted to speak to him, nor have we received any communication from him.) A hearing in the case is set for Sept. 18.
It leaves a number of questions. The extreme reaction of the board to the apparent rise in costs of the new facility (inevitable in any distillery build) has raised questions as to the financial stability of Allen’s investment group, and makes some analysts wonder whether the Allen-led consortium was investing in Balcones with the intention of selling it at a profit soon after the expanded plant was in production.
If so, this will not be the last time we will see this happen. Investors unfamiliar with the long-term nature of the whisky business are liable to only see potential profit, with no great understanding of the deep pockets required to invest in plant, warehousing, and inventory. What further complicates matters where craft distilleries are concerned is that they are not just buying into a brand, but a highly personalized vision. Without Chip Tate, is there — can there be — a Balcones?
Sixty years ago today, in 1954…
Jimmy Russell started working at the Wild Turkey distillery, at the age of 18.
We at Whisky Advocate, from founder John Hansell on down, our entire staff, would like to say: Well done, Jimmy!
We’ve talked to Jimmy over the years. Here’s some of his story, as we’ve reported it in previous issues.
“Really, my wife, Joretta, was working here before I was,” Jimmy recalls, “and my dad worked at the Old Joe distillery here in town. There were four distilleries here at that time. It was us, then where Four Roses is now was known as Old Prentice, the Hoffman distilling company, and Old Joe distilling, where my dad was. I was fortunate enough to get on here and haven’t been able to get away yet.
“This is really the only full-time job I’ve ever had,” he says. “It wasn’t hardly the same as it is now. They called it ‘Quality Control.’ Now you do Quality Control and people bring you samples and you sit there and run them. Back then, you went and got your own samples, and then you might be unloading a truck of grain after you run them. Unloading it with a shovel!”
Jimmy learned distilling from Mr. Bill Hughes (that’s how Jimmy always refers to him). “Mister Bill was a seven-day man,” as Jimmy puts it. “He lived up on top of the hill, and he was here seven days a week. He’d worked before Prohibition, here at this distillery.”
“When I started, about all bourbons were bottled at 100 proof, bottled in bond,” Jimmy notes. “But theirs had to be at 101, and it stuck, because that’s what they liked on this turkey hunt.”
The turkey hunt is the origin of the Wild Turkey name, enshrined in the brand’s back-story. The McCarthy family owned the distillery in the first half of the 20th century. Some of the McCarthys would take bourbon from the warehouses along on an annual turkey hunt with friends in the late 1930s. The friends asked for more of “that wild turkey whiskey,” and the McCarthys decided to sell it under that name.
That probably seems too easy, a story created in the marketing department, but Jimmy remembers hearing the story directly from Thomas McCarthy, who’d been on the hunts. Until the late 1970s, that 101 proof bottling of Wild Turkey was the only product the distillery made.
Jimmy is perhaps best know for keeping Wild Turkey made the way he wanted it made, the way he learned to make it from Mister Bill. He has stuck to his guns, and while there have been some changes — additional products, like the rye, the Rare Breed and Kentucky Spirit bottlings, and the whole Russell’s Reserve line — and the entry proof has been nudged up just a little to 57.5%, largely, Wild Turkey is still made the same way it has been for 60 years.
“Any time you have to add [water],” Jimmy says, “you’re going to reduce your lighter flavors. But, you know, all of us have different ideas, and we all make good bourbon.” He pauses. “But that’s how we make ours,” he said.
60 years ago, it was made the Mister Bill way. Now it’s the Russell way.
That was then; this is now. Fred Minnick reports on a ceremony last week that honored Jimmy with a lifetime membership in the Kentucky Distiller Association, just one of the celebrations that have been taking place this year.
Wild Turkey master distiller Jimmy Russell thought the Kentucky Distiller Association’s September 2 board meeting was just another meeting. He was wrong.
As Russell walked down the long, sloping Wild Turkey lunchroom entrance, a surprise-party audience stood on its feet, roaring, clapping, and ready to commend a friend, a bourbon legend, an iconic Kentucky figure who could win the state’s governor position if he ran. (At least, that’s what Kentucky governor Steve Beshear said.)
The first to embrace the “Buddha of Bourbon” was his distillery sweetheart and wife, Joretta Russell. “What are you doing here? What’s going on?” Russell asked, embracing his wife to the sound of joyous clapping.
Russell was being honored with the KDA’s Lifetime Honorary Member Award, making him only the sixth person since 1880 to receive the honor. It’s the latest honor bestowed upon Russell. He’s in the Bourbon Hall of Fame, the Kentucky legislature passed a Resolution to honor the distiller, and Wild Turkey’s parent company, Campari, has practically shifted all of its 2014 Wild Turkey marketing dollars to promote Russell’s 60th anniversary. This private event was the industry lobby’s chance to recognize Russell, who joined the KDA board May 16, 1978, and remains Wild Turkey’s alternate director.
“If there was a Mount Rushmore of Bourbon, Jimmy Russell would be one of the first faces on it,” said Eric Gregory, the executive director of the KDA.
After a round of thoughtful remarks from KDA members, a few laughs and a documentary dedicated to Russell (see above), where I learned Russell was thought to be Kentucky’s best athlete during his youth, I caught up with the legend to ask a few questions.
Was this really a surprise?
This is one they put over on me!
What does the Lifetime Honorary Member Award mean to you?
This is unbelievable. Seeing all these distillery people, this is something I’ll always enjoy. Being here in Kentucky and in the bourbon business, we help each other all the time.
This honor is about your KDA role. Give me a KDA story.
There are a lot of them. Over the years, I’ve been a member for, gosh, I don’t know how long. But a lot of things went on. They’d get rowdy at times, but we all ended up agreeing with one another.
Any really intense meetings?
There have been several intense meetings over the years. When they had the sales tax in Kentucky, they first put it on the distributor. And then five or six years ago, they put another sales tax on the consumer. We went to the Capitol steps in Frankfurt, Kentucky, and poured out bourbon all over the steps.
Over the years, the KDA has been involved with lawsuits with Sazerac. What has it been like being a board member during these situations?
It’s one of those things. We all have disagreements we get into, but we’re all still friends in the business. Some people want to do it one way, some want to do it another way. Usually, the KDA resolves their problems and ends up working everything out.
What does the future of bourbon look like?
I hope great. If not, we’re in deep trouble. Our company spent more than $100 million over the last five years, and we’re putting away bourbon we’re not going to sell for another eight years. If it doesn’t keep going, we’re going to have a lot of bourbon seven to eight years from now.
We’re lucky to have him. Perhaps the greatest tribute to Jimmy is the one his son Eddie pays him in the video. Here’s what he said. “The question I got when I first started going out on the road was, ‘How are you going to fill those shoes?’ And my complete and honest answer is, ‘I’ll never fill those shoes.’”
And Jimmy? We’re going to see him for a while, of course. He’ll be at WhiskyFest in San Francisco and New York this fall: he’s the only person in the industry who’s been to every one…and there are only three of us on the staff who can match that record! But when the celebrating and the honors of his anniversary year are over, he’s going to keep on working, making Wild Turkey whiskey the best way he knows how.
“I hope that’s the way it is when I leave here,” he says at the end of the video. “I’ll come to work that morning, and that afternoon, when it’s time to leave, just walk out. That’s the way I’d like it to — it’ll never happen that way, I think, but that’s the way I would like for it to happen.”
We hope you get your wish, Jimmy. You’ve earned it.
Ian Buxton has some thoughts about the upcoming vote on Scottish independence. Not surprisingly, they center on its effects on Scotch whisky. Be honest; that’s exactly the way many people who read this blog evaluate it!
At last! At last, the Scotch whisky industry has woken up to the potential dangers of a ‘yes’ vote in the Scottish Independence Referendum (you can explore the issues, facts, opinions, and polls on a BBC site here).
In summary, on September 18th, voters in Scotland will give a YES/NO answer to a simple question: ‘Should Scotland be an independent country?’
The question is a momentous one, involving the break-up of the 300 year old United Kingdom and turning Scotland and England into foreign countries. The debate has run on for nearly two years, with no final and satisfactory answers to questions such as ‘what currency will Scotland use, and on what basis?’, ‘will an independent Scotland be part of the European Union?’ and ‘how will all this be paid for?’
The expectation is that if Scotland breaks away it will follow a more left-wing political and social agenda than has previously been the case for the United Kingdom as a whole. The nationalist case is that Scotland, a country rich in natural assets, can well afford to stand on its own. The North Sea oil fields are frequently mentioned as a major source of income, though as the No campaign loudly responds, eventually the oil will run out. No one knows exactly when, but that the wells will finally run dry isn’t in dispute.
That leaves whisky as one of the few remaining national assets that can’t easily get up and leave (a large part of the significant Scottish financial community could well decamp to the City of London). The fact that Scotch whisky has to be made and matured in Scotland means that it will inevitably be a long-term tax target for any future government of an independent Scotland.
The political arguments are good: the industry uses Scotland’s water but currently pays relatively little tax in Scotland itself and, while it creates employment, the high-value management jobs tend to be out of the country. Much of the economic benefit of Scotch whisky flows not to the people of Scotland, but to anonymous global multinational corporations. A tax on water extraction would be easy to measure and very hard to avoid. Why shouldn’t they pay their share?
It’s a seductive argument. What’s more, as well as a water tax, one could easily anticipate a ‘storage tax’ on every barrel slowly maturing in a Scottish warehouse (similar to Kentucky’s ad valorem tax on aging bourbon; you could expect many more NAS whiskies if that ever came in!). The current political administration of the Scottish National Party, who run the present Scottish administration, are also deeply committed to higher taxes on alcohol on grounds of health and social policy, so the price of a dram or a bottle could shoot up after a Yes vote.
You might have thought then that the Scotch whisky industry would have been lobbying hard against the independence vote and stressing the benefits of the union. But until very recently we’ve heard little; the corporate line has been “it’s for the people of Scotland to decide.”
At last, however, they have started to fight. First to break cover was former Scotch Whisky Association chief Gavin Hewitt, who has set out a clear personal position in mainstream and social media. He’s no enthusiast for an independent Scotland. “Scotland would lose influence in the world and the clout that a big country has with [EU headquarters in] Brussels; lose access to a superb network of UK embassies and trade support, and I am concerned about the consequences [of a 'yes' vote] for whisky. If it ain’t broke,” he argues “then don’t fix it.”
But Gavin is just one man. That’s not the case with William Grant & Sons’ donation of hard cash to the Better Together campaign and other pro-Union groups. Earlier this year they gave £185,000 (more than $300,000) and have been vocal in support of the status quo.
Now they’ve been joined by a number of distillers who were part of a joint letter to The Scotsman newspaper signed by 120 leading Scottish businesses which argued the case for the continued union with England. It included some impressive names such as the chief executives of the Edrington Group (Famous Grouse, Macallan, Highland Park), Inver House, Burn Stewart, and William Grant & Sons, as well as smaller concerns such as Tomatin, Adelphi, Ian Macleod Distillers (Glengoyne), and so on.
Well done, I say… and where are Diageo, Pernod Ricard, and Bacardi? This issue is simply too important to let go by default. It’s my opinion that the companies are making a mistake: they should have a view and they should express it, quickly and clearly. Their employees and customers deserve no less. This is too important a subject: Scotch whisky does not belong to Scotland alone, and the drinkers of England and Wales, let alone the wider world, want to hear the distillers’ voice: loud and clear.
Scottish Independence, if it comes, may well be good for whisky’s image, yet also, as I have suggested, push up prices. Whisky drinkers may welcome a greater strength of national identity and the proud confidence of a newly-formed nation, but will those drinkers be willing to pay more to toast an independent Scotland?
That’s the key question that no one can answer. But one thing is sure: if Scotland votes to go it alone, there will be no way back and nothing will be same ever again for the nation’s most famous export.
On September 19th we will know for sure.
“An activity involving skill in making things by hand.”
“Denoting or relating to food or drink made in a traditional or non-mechanized way by an individual or a small company.”
“An art, trade, or occupation requiring special skill, especially manual skill.”
And then there’s this:
“Skill used in deceiving others.” As in, “He used craft and guile to close the deal.”
That last one is archaic but relevant, because everyone these days wants to claim the word “craft” and apply it to their company and its products. That includes the largest companies in the business. This shouldn’t surprise anyone. The world’s largest beer makers have been trying to co-opt “craft brewing” for decades.
In a recent conversation with Chris Morris, he cited the dictionary. Morris is Brown-Forman’s master distiller and the occasion was a press event to launch a new craft series for Old Forester Bourbon. (It’s pretty cool, but more on that later.) Morris said, “The dictionary says craft is about experience, knowledge, and skill. We have all those things.”
Ewan Morgan, a Diageo brand ambassador for whiskies, puts it this way: “Craft is about artisanship, passion, experience, great liquid, great products.”
I’m not going to quarrel with the big guys — not here, anyway — but the problem with their point-of-view is this. “Craft” cannot merely mean “well made.” If everything is craft, then nothing is. The word becomes useless as a way to distinguish something from something else.
If the definitions above are vague as applied to craft spirits, the American Distilling Institute (ADI) has one that is very specific. It defines “craft spirits” as “the products of an independently-owned distillery with maximum annual sales of 52,000 cases, where the product is physically distilled and bottled on site.”
Jackie Summers is a craft spirits producer in Brooklyn, New York, who makes an enticing liqueur called Sorel. He doesn’t distill anything. His craft is working with and combining botanicals and other natural ingredients to produce a drink that is original, even as it seems familiar. He is also skilled at crafting thoughts.
“Before the advent of public education,” he writes, “people learned a trade through the apprenticeship model. Apprentices would begin to study with a master in their mid-teens, and continue into their early twenties. It was not until you took on your own students that you could claim mastery yourself. By this method, generations of skills were handed from one to the next — you honed your craft — based on a simple principle: you don’t become great by trying to be great. You become great by doing something over and over again, learning as you go. Greatness is a process. As Aristotle said, we are what we do repeatedly.
“Ultimately craft distillers see themselves as artists, their distillate being their art,” he continued. “Sure, you could start off with a concept, hire food scientists to chemically analyze and then reverse engineer a liquor. But what makes small batch production special is the tiny inconsistencies from batch to batch that give a product character; the miraculous way one bale of wheat may differ ever so slightly from the next, or how actual botanicals play and dance with each other in a way that chemical compounds can only imitate. Remove these tiny fluctuations, and the end result is sterile perfection.”
Now we’re getting somewhere.
Craft is about things made, not necessarily from scratch, but where an artisan effects some kind of transformation. For something to be “craft,” an artisan must conceive and execute an idea, and it must be a production idea, not a marketing one. The craft performed must directly impact the product, not merely the packaging and promotion of it. And the artisan himself or herself must do it, perhaps with assistance (e.g., apprentices, journeymen), but the unmistakable mark of the master’s hand must be on the final product.
Craft has nothing to do with the size of the company. It is the product that represents the craft, not the producer. A corporation may be a legal person, but a corporation cannot be an artisan. A corporation cannot be a master distiller.
The artisans working at the producers most recognized for their craft whiskeys — Balcones, Koval, Corsair, Few, Dry Fly — do it with their mastery of the materials, equipment, and processes; but also with innovation, originality, and creativity. They do things that haven’t been done before and create products unlike anything you’ve ever tasted before. That’s what the consumer wants from ‘craft.’
To make sure you get what you want when you want craft whiskey, get used to asking producers and promoters this question about their craft products: “What’s ‘craft’ about it?”
Another in our occasional series of Tweet-style interviews. As always, it’s 140 characters or less (we don’t count the spaces) in the answers from Georgie Bell, Diageo’s luxury brand ambassador (Mortlach’s her main focus). Georgie’s boundless enthusiasm ran us close to the wire on some answers, but we managed.
Where are you based and what’s the view from your office window (if you have one)?
The center of Edinburgh; I have been for the last 8 years. The sun is streaming through the window (a rarity for August) and I have a cup of Vietnamese coffee to hand.
Sounds good: explain Vietnamese coffee, please. And the view from the window?
Picked up some incredible coffee from a Saigon market: very strong, extremely aromatic. View: cobbled streets, old town houses in the heart of Edinburgh’s New Town.
Cocktail industry! Worked in Edinburgh bars for 5 years. Found I had a particular interest in whisky. When I graduated from university I thought, why not give it a go!
Good woman. Career path to here?
Firstly the Scotch Malt Whisky Society (similar to the other Diageo Georgie!): worked with them for 3 years as a bartender, then their global brand ambassador.
Fueled my ‘geeky’ interest by gaining IBD* diploma in distilling. Then joined Diageo in January 2014 as luxury malts ambassador, looking after rebirth of Mortlach.
Quite intensive. Congrats on the IBD diploma, that’s commitment. It’s been less than a year on Mortlach. Enjoying it so far?
7 months, still standing! It’s been fascinating working on the launch of a whisky – no 2 days are the same – and everyone in the company and out has been very supportive.
Very varied. Working with markets on launch plans; both at a distance and in market (off to China soon). There’s more…
Okay then: fire away.
Spending time with the whisky creation team, in archives researching the distillery history, special Mortlach tastings & dinners. It’s a lot of fun! I’m very lucky.
You have my dream job. What are your most and least favorite aspects of it?
Least…I’m not a huge fan of hotel laundry services (I prefer to wash my own intimate apparel!), everything else is fantastic.
Love traveling, new cultures, seeing overseas friends, breaking stereotypes, introducing people not only to Mortlach but whisky as accessible & versatile spirit.
You’re so right on accessible/versatile. The “new” Mortlachs taste great. Any quick insight into how those 4 were arrived at to offer to consumers?
To show distillery character at its best: highlighting unique 2.81 distillation process. All 4 so individual and decadent but a common strain of flavor throughout.
And those characteristics and common flavor strain are….?
A distinct umami note (savoriness), rich, ‘thick’ in body and viscosity and muscular with an underlying succulent fruitiness.
I think it’s easier if someone explains it to you. I spent 4 days working there and it wasn’t until the final hour that I actually ‘got’ it; it’s quite something!
Does that system make it more expensive to produce? If so, how? Nothing wrong with expensive; just trying to understand.
Not at all! Just a different pattern of distillation from other places. Distilled it this way since 1896. We’re replicating the 2.81 process in the new stillhouse.
Will look forward to hearing more. Scotch generally: some lovely but expensive packaging for older or special ones. Going too far and overshadowing the whisky?
No, it’s giving the whisky the attention/care deserved. Think how pretty you feel in an extra special dress or coat. Whiskies ‘dressed’ as such are extremely special.
Good answer and, as a marketeer, I agree. In that case do you think industry pricing for such things is about right or do you not get much time to notice?
I try to focus on the whole category so if you take account of other factors (18+ years in cask is taking a gamble), the prices reflect the whisky’s rarity and specialness.
True: not everyone gets the high costs behind the long maturation process. You’re enviably slender and one interest is sport. Anything in particular?
Thank you, but beg to differ! Running (a half marathon soon, a great way to explore a new city); general gym work. Spin classes & bikram yoga: exercise keeps me leveled.
That’s not exercise, that’s full-on training. Is this because you also love food?
I do love food and also spend a lot of my life traveling. Being in shape helps combat any stress of traveling and keeps my energy levels high for presentations etc.
Any particular dish or style of cuisine?
Anything and everything! I love spicy Asian food. I tend to try and stay away from anything too rich though.
I understand you bake. Do you have competitions with Georgie Crawford at Lagavulin?!
I would love that! Although I’m sure she’d win: my attempts recently haven’t been too successful. ‘Freestyling’ a baking recipe isn’t advised…
Okay, maybe we have a bake-off challenge here. The Great Scottish Bake-Off!
You also love travel, just as well. Favorite country for a) work and b) leisure? Why?
What is leisure?! I’m joking – I’m a beach baby at heart so anywhere sunny – I also love to dive.
And for work?
The U.S. (specifically DC & NYC – lots of friends there); Sweden (incredible quality of living); Canada; Singapore – I haven’t yet been to a country I haven’t enjoyed.
What’s your desert island dram? You’re allowed to appreciate the work of competitors – others in this series have. Only one, mind!
Drams match memories. Had an incredible BenRiach 1988 after Victoria Whisky Festival; Mortlach 25; Monkey Shoulder; anything from Clynelish: I can’t just pick one!
It’s compulsory – one only, please!
Mortlach 25 – decadent, beautiful – for a luxurious desert island retreat!
And we’re done. Thank you.
* Institute of Brewing & Distilling
The fall issue of Whisky Advocate will hit the newsstands September 1st. It’s a great issue from cover to cover, and the Buying Guide contains more reviews than ever before. Today we offer a sneak peek at the Top Ten whiskies reviewed. (As always, if the price is not listed in U.S. dollars, the whisky is not currently available in the U.S. market.)
Smoke begins Jim Beveridge’s public replication of the annual Directors Blend concept, built around Johnnie Walker’s signature characteristics. Peat smoke harks back to Islay, but there’s wood smoke, tobacco leaf, and malt, with a salty richness behind it. The grain just gives it a lift of extra sweetness. Polished, with great structure; red apple, raspberry, and sweet linctus wrap up with a long, smoky finish of cigar stub and peat stores. Clear parallels with Directors Blend 2009, but better. (8,888 decanters released)—Jonny McCormick
Advanced Whisky Advocate magazine rating: 91
#9 - Benjamin Prichard’s Tennessee Whiskey, 40%, $45
Although the Prichard distillery is located in Lincoln County, it has a special exemption from using the Lincoln County Process and isn’t charcoal filtered. The nose reflects that with bright aromas including caramel, cinnamon, and oak. The entry is sweet caramel corn followed by soft cinnamon and black pepper with a boost from some oak. A medium, slightly dry finish completes a very flavorful but still extremely easy-drinking Tennessee whiskey. This is the crown jewel of the Prichard distillery line.—Geoffrey Kleinman
Advanced Whisky Advocate magazine rating: 92
#8 - The Feathery, 40%, £39
Chocolate-covered raisins scoffed on a heathery moor, leather riding tack, intense plain chocolate, malt loaf, mixed nuts, Medjool dates, and traces of wood ash. A gorgeous, unctuous mouthfeel with flavors spun around bright sparks of orange, dark toffee, and rich maltiness, melding to black cherry, stewed fruits, licorice, and charred oak. Named for the leather golf balls packed with goose feathers used in the early 19th century. Sink one for a birdie. From the bottlers of Sheep Dip. —Jonny McCormick
Advanced Whisky Advocate magazine rating: 92
#7 - Glenfarclas Family Casks 1988 Cask #434, 53.4%, £345
Quite earthy, with orris root, burlap, and dunnage warehouse notes. Distinctly meaty—Bovril (beef stock)—then cedary. This untamed edge—think Mortlach or Benrinnes—dominates the palate, but the cask (a refill butt) isn’t overstating its presence. There’s espresso on the finish. Here’s Glenfarclas taking a ramble on the wild side. If your preference is for more robust styles, then look no further. —Dave Broom
Advanced Whisky Advocate magazine rating: 92
#6 - Baker’s, 53.5%, $47
Rich, multi-layered nose: vanilla, cornmeal, berries (black raspberries, wineberries), and broad-shouldered oak. Powerful, but not overproof hot in the mouth; controlled. The berries sing a high counter-melody over the corn-oak beat as the whole experience rocks along. It’s powerful, sweet, authoritative, and finishes with a reprise of it all: berries, corn, vanilla, and stronger oak. Mature, complete bourbon with a 7 year age statement, and a real sleeper in the Small Batch Collection. —Lew Bryson
Advanced Whisky Advocate magazine rating: 92
#5 - Lagavulin 1995 Feis Ile 2014 bottling, 54.7%, £99
A sherry-cask Lagavulin, this immediately shows a rich, mellow power with a touch of potter’s wheel, but it needs water to bring out sandalwood, beach bonfire, kombu, Lapsang Souchong, and bog myrtle. The palate is where it shows itself fully; resinous and thick, unctuous even, with that scented pine/juniper tea note shifting into paprika-rubbed ham, membrillo, currants, blackberry. I’ve a feeling that this period will be seen as Lagavulin’s golden age.—Dave Broom
Advanced Whisky Advocate magazine rating: 93
#4 - Glenfarclas Family Casks 1987 Cask #3829, 48%, £230
This is the bomb. Savory and lightly meaty, but sweetened by plum sauce; there’s even some strawberry around the fringes. You could see how with another 30 years this would end up like the ’54. Elegant yet powerful, there’s sandalwood incense, marmalade, even a little dried mango. The distillery’s density is balanced by this fruit. Lush with supple tannins and at its best neat. From a refill butt, this is an exemplary sherried malt. —Dave Broom
Advanced Whisky Advocate magazine rating: 94
Aged 11 years, this year’s single barrel release is a lively mix of caramel and bright, zingy orange on palate entry. Cinnamon, vanilla, and mint emerge mid-palate, leading to polished oak, baked apple, and a hint of leather on the finish. A lively bourbon, with crisp, clean flavors and nicely balanced. Another winner from Four Roses. —John Hansell
Advanced Whisky Advocate magazine rating: 95
#2 - Crown Royal Monarch, 40%, $75
Monarch, the 75th anniversary limited edition of Canada’s best-selling whisky, raises the already high Crown Royal flavor bar. Zesty rye from an ancient Coffey still is the throbbing heart of this blend, balancing cloves, ginger, cinnamon, glowing hot pepper, and that gorgeous sour bitterness of rye grain against crispy, fresh-sawn lumber, fragrant lilacs, dark fruits, and green apples. Butterscotch, chocolate, toffee, mint, pine needles, and sweet pitchy balsam enrich a luscious, creamy mouthfeel carefully tempered by grapefruit pith. —Davin deKergommeaux
Advanced Whisky Advocate magazine rating: 96
And the top rated whisky of the fall 2014 issue of Whisky Advocate magazine is…
Glenfarclas Family Casks 1954 Cask #1260, 47.2%, £1,995
A rich amber color and elegantly oxidized notes greet you. There are luscious old fruits—pineapple, dried peach, apricot—and puffs of coal-like smokiness. In time, sweet spices (cumin especially) emerge. Superbly balanced. The palate, while fragile, still has real sweetness alongside a lick of treacle. It can take a drop of water, allowing richer, darker fruits to emerge. The finish is powerful, long, and resonant. Superb, not over-wooded, and a fair price for such a rarity. —Dave Broom
Advanced Whisky Advocate magazine rating: 96
There will be no further Bonhams whisky auctions in New York for the foreseeable future. The auction house has canceled its planned sale for October 19th at its Madison Avenue galleries and will review the situation on scheduling further auctions next year.
Mariam Cebalo, director of business management at Bonhams confirmed to Whisky Advocate that the cessation of operations in this area was solely due to the whisky department’s profitability. In other words, the department may not have hit the targets set by the company to justify the resource required to appraise, catalog, store, display, and ultimately auction large consignments of rare whisky. Whisky auction houses must partner up with a retailer holding a liquor license, and that comes at a cost to the operation.
Therefore, this decision is not a reason to doubt the inherent value of whisky as a collectible or affect confidence in the secondary market. From the business perspective of an auction house, it is simply the commercial nature of whisky as a tradable commodity when compared with other assets in the New York saleroom. “The market is especially strong right now for Asian art, Californian and American paintings, jewelry, and motorcars,” Cebalo told me.
The legislation preventing whisky auctions in New York was overturned seven years ago. Christie’s held the first sale in December 2007 and Bonhams entered the fray in 2009. In recent years, Bonhams have been running biannual rare whisky and spirits auctions in Manhattan, with the last sale held on April 30th 2014.
Importantly, Bonhams have confirmed that the whisky department in Queen Street, Edinburgh and at One Pacific Place, Hong Kong are unaffected by this news and their full program of whisky sales continues as advertised. Bonhams have been expanding their operations in Asia-Pacific with the opening of a new Singapore office. This means that the highly anticipated Bonhams Hong Kong Japanese & Rare Whisky sale will take still place on August 15th 2014, and the next Edinburgh sale will occur on 1st October 2014. However, that may be little consolation for whisky collectors in the United States and Canada.
The Bonhams business is currently up for sale by its two majority owners, so would the reinstatement of whisky auctions be at the discretion of any potential new owners? Would there be any market conditions to be met first? “Bonhams’ evaluation of whisky auction scheduling for 2015 is based solely upon profitability,” said Mariam Cebalo. So if you are thinking of consigning your whisky or bourbon collection for sale, should you still approach Bonhams, New York, I wondered? Cebalo replied affirmatively, “With its international expertise, Bonhams is well equipped and happy to appraise large, valuable collections and discuss consignments with interested parties.”
Where does this leave the whisky collector in the United States? Bonhams were the only auction house running fully dedicated whisky sales in New York, so will other auction houses capitalize on this opportunity? As a collector, who else could you speak to? I took a straw poll of leading U.S. fine wine auction specialists and this is what they told me.
Acker Merrall & Condit
“We will continue to welcome and offer and sell whiskey at our auctions in New York,” said John Kapon, chief executive officer of the global company well known for its fine wine auctions. “I doubt we will conduct a ‘spirits only’ auction, as it is a niche market.”
Christies, New York
“Christie’s, NY led the way with spirits sales many years ago, in the first spirits auction since Prohibition,” remarked Charles Antin, Christie’s head of sale, associate vice president and fine wine specialist. “Since, we have always offered smaller, curated selections of scotch, bourbon, cognac, and rum in our fine wine auctions. On October 10th, in fact, we have a large selection of scotch including Black Bowmore and others.”
Hart David Hart Wine Co., Chicago
“We feel there is certainly potential to expand the fine and rare spirits segment of our business,” said Marc Smoler, their marketing manager. “Spirits categories such as bourbon, chartreuse, and Japanese whisky have drastically increased in popularity in the past few years. Hart Davis Hart has done particularly well with small production bourbons such as Pappy Van Winkle and older vintages of classic single malt scotches.
“As our business continues to grow, we would like to offer more opportunities to purchase and fine and rare spirits through both our retail and auction outlets and we welcome any collector to sell their whiskey collection with us,” he continued. “However, we don’t foresee a whiskey-only auction in our future.”
Morrell & Company, New York
I spoke with Jeremy W. Noye, Morrell’s CEO.“We’re always willing to look and consider a collector’s selection of whiskies or spirits.” However, he doesn’t see a dedicated whisky sale on the cards quite yet. “I won’t count it out, I won’t say never, but we will continue to have whisky within our fine wine sales. There is an interest in the market in vintage spirits looking at the distillation dates of different whiskies, bourbons and cognacs. In general, we don’t seem to see as much of the older bottlings here in the U.S. as you see in the UK and Europe. I know there are major collections here in the U.S. but they tend to hold on to them for longer than they do with wine.”
Admittedly, it is harder for a business that doesn’t handle large amounts of rare whisky to appraise and value whisky bottles. “It is labor intensive from our standpoint,” says Noye. “It does take a fair amount of research. My gut tells me there is less of a breadth of knowledge, the historical look and feel [of the bottles], and data out there as there is on wine at this time.”
“I think there is interest there,” he said encouragingly. “It is spread out across the country and globally. At least in the U.S., the Pappy Van Winkle craze has really spoken to that. We’ve seen more bourbon coming up to auction now, even the general release stuff. It’s the scarcity aspect.”
Skinner, Inc., Boston
After running a dedicated online auction of fine ales last spring, Marie Keep, director of fine wines said, “We see great potential for growing the exciting and dynamic marketplace of whisky and spirits, and believe we could become the auction house of choice for collectors on both the buying and selling side.”
Sotheby’s, New York
Sotheby have been known for their occasional spectacular sales of Macallan. Their press office said, “We don’t currently hold regular dedicated sales of whisky and there are no plans to do so. We don’t rule out offering occasional rare bottles or collections in the future though.”
Wally’s Auctions, New York
“Wally’s absolutely welcomes whisky collectors to sell their collections (and buy!)” enthused Julia Gilbert, Managing Director. “We have had great success with highly curated sections of spirits in our March and June 2014 live auctions in New York, and we frequently receive inquiries about offering spirits at auction. As the whisky market continues to grow both domestically and globally, a dedicated whisky or spirits auction is certainly in the realm of possibility for Wally’s Auctions in the future.”
Bonhams continues to be a major player in the secondary market for rare whisky, but this snapshot indicates that choice abounds, and the landscape may have changed in the U.S. by the time Bonhams are ready to come back into the marketplace.
I got a chance to visit two craft distillers in the Northeast last week: Berkshire Mountain Distillers and Catskill Distilling. I took a day off and drove up to Boston for the 30th anniversary of the opening of the Boston Beer Company (the brewers of Samuel Adams), and realized I could easily stop in to see some whiskey being made on my way back. It was a gorgeous day, and after I’d cleared the Boston traffic, a great drive west out the Mass Pike, past lakes, marshes, and forests, then into the rolling folds of the Berkshires. I got off the Pike, headed south, and watched as the roads my mapping app directed me onto got smaller and smaller, until finally the arrow pointed down a long gravel driveway through a meadow.
Nice work, mapping app: that’s where I found Berkshire Mountain Distillers and founder Chris Weld. Things were, as he put it, “a tad crazy,” as they prepared to move to a new building in nearby Sheffield, Mass. The grassy area around the barn where the distillery has been for seven years was littered with tanks, “totes” (the heavy plastic, roughly 1,000 liter container cubes this industry seems to run on), and a malfunctioning auger, all waiting to be moved or salvaged. It was also crazy because while they were mashing in for a run of bourbon, they were eagerly anticipating the first run of their new bottled gin-and-tonic product, due to be done at the new plant in mid-August. (I got a chilled sip: deliciously refreshing and dangerously drinkable at 26 proof!)
Berkshire runs on a pot still salvaged from Brown-Forman, an odd, capsule-shaped device with internal copper. The new make ages in a variety of barrel sizes; like many craft distillers, Weld is moving away from tiny 10-gallon barrels to larger ones. Too woody, too fast in the smaller ones, he acknowledged. That’s some of the reason they’re moving: more room for barrels. Another reason is that long gravel driveway and the barn. It’s hard for trucks to get back here, and once they’re here…Weld told me a hair-raising story about a parked truck starting to slide, wheels locked, down the snow-covered driveway toward his cottage. They managed to get it stopped, but started looking for another location.
Berkshire has done some interesting collaborations with brewers. I’d actually tasted one the night before at the Samuel Adams event; a whiskey made by distilling Samuel Adams Boston Lager and aging it in bourbon barrels. It was at barrel proof, and only two years old, but with a bit of water it opened right up and gave the floral, spicy hop nose the Lager is known for, without the bitterness in the mouth. It’s still young, and hot; in a couple years, it might be an interesting whiskey indeed. They did another one with Samuel Adams Cinder Bock, a smoked beer, which was aged in barrels that had held Samuel Adams Utopias. I tasted that at the distillery, and didn’t really get much of the smoke; the rich vinous wood of the barrel was more evident.
They’ve also done a series of small bottlings of their bourbon, finished in barrels used by other brewers to age their beers. I review the Samuel Adams Utopias edition in the upcoming Fall issue; Chris gave me a sample bottle of the Terrapin Brewing project at the distillery; there will be ten bottlings altogether. I found the Utopias bottling to be a richer, rounder version of the standard Berkshire Mountain bourbon bottling, and look forward to trying the Terrapin.
Chris had to run at this point, so I thanked him, and headed back down that gravel driveway and west toward the Hudson River. I crossed at Poughkeepsie, had lunch at a brewpub in New Paltz, and headed into another incredibly scenic drive, up over the Shawangunk escarpment and into the Catskills. After 50 minutes of roller coaster-like thrill driving on more two-lane roads, I found myself stuck in a solid mile of backed-up traffic…a mile from Catskill Distilling! What the heck was going on, a run on the tasting room?
My single-mindedness had betrayed me. I didn’t know that Catskill Distilling was just a couple hundred yards up the road from the Bethel Woods Center for the Arts, a performing space on the site of the 1969 Woodstock festival…and Jimmy Buffett was playing there that night. Don’t mess with the Parrotheads! I did finally get to turn off at the Dancing Cat Saloon and Catskill Distilling Company, where I was quickly greeted by the gregarious and friendly Monte Sachs, DVM.
That’s right; the owner is a large animal veterinarian. He made his money caring for racehorses in the Hudson Valley and at the track at Monticello, just down the road. I asked him how he got hooked on distilling, and he told me a great story about an Italian girlfriend who took him back to the family vineyard, where he decided to learn winemaking to impress the parents. “But after six months, I learned that winemaking is a lot of work!” he laughed. “What I really liked and wanted to do was make grappa.” The distillation of this Italian spirit fascinated him, and he decided he would make grappa. Someday.
Eventually the opportunity came along when New York passed a farm distillery law in 2008. Sachs jumped on it. He put in a Carl still setup, and got some valuable consulting help from industry legend Lincoln Henderson. (I first heard of Monte and Catskill from Lincoln, who told me that, among other things, he’d told Monte to “keep the place clean and open a gift shop; people want to buy things.” I can report that Monte definitely took that advice; the place was spotless, and there was plenty of merchandise.) Henderson advised him on his aging building, a former horse stable behind the distillery.
This little barrel house is heavily insulated, without windows, and when Monte opened the door for me, I could see it was stuffed with barrels. It was also eye-stingingly heavy with boozy aromas; the angels have to fight for their share of this whiskey! There was a concrete slab beside the building; another aging house is going in soon, and should be up by October.
Monte needs that barrel house, and new tanks, and more barrels (he says he’s got good barrel supply, but has to order in large lots to get it). Not only is the current barrel house chockfull, he’s ramping up production. Through a chance meeting at a spirits expo, he connected with a high-powered consultant with years of experience in major spirits companies who had just retired and was looking for interesting products to work with. Monte sent him his product line and, just as I did in this summer’s Rye Issue, he picked out the Buckwheat whiskey as the most interesting, the most different. There are plans to make the Buckwheat the forefront of the portfolio, and there may be a lot more investment coming in to make it happen.
He’s also doing a collaboration with a brewery, by the way. He connected with Brewery Ommegang, over in Cooperstown, N.Y., and they made a batch of ale for him that’s been distilled and is aging in the barrel house now, with the rampant Ommegang lion stenciled on the barrel head. Exciting times in the Catskills.
And the grappa? He’s still making it. “You see those bottles? They’re all hand-blown, which means they’re all a different size, so I have to measure the spirit going in at precisely 375 ml, and I have to use a tapered cork because all the necks are different, and then I have to wax the corks to keep them in. And it’s not a big seller.” He shrugged, and grinned. “I’m still going to make it! I really love the stuff.”
I don’t like grappa. I’ve tried it, repeatedly, and I don’t like it, or the similar slivovitz or pisco (though I do like marc; go figure). But I told Monte I’d try his, because he’d been so friendly, and because that Buckwheat was so interesting. You know? I liked the grappa (words I’ve never said before, or ever thought I would). It had much more to it than just hot rocket fuel character; it was subtle, intriguing, delicate. It was an interesting insight into how distilling is done here; each product clearly shows its origin grains or grapes, packed with flavor before it comes anywhere near wood.
I left Catskill Distilling, cut back half a mile to elude the Parrotheads, and two-laned it home, managing to make it a hat trick of pretty little mountain chains by driving through the Poconos during a gorgeous sunset. There aren’t any craft distillers in the Poconos yet, but who knows what might happen in a few years?
(Do you like the video? Do you want to see more? Or is it just annoying?)
Another in our occasional series of Tweet-style interviews. As always, it’s 140 characters or less (we don’t count the spaces) in the answers from Paul McDonagh. Paul is passionate about his Scotch whisky and the owner of Glasgow’s finest whisky bar, the Bon Accord. A man who’s enjoying the bar life.
What’s the view from your office window – if you have one?
I don’t have one but I do have some nice bottles of whisky to look at.
Good answer! How long have you been owner at the Bon Accord?
This is my 14th year but it seems like only yesterday that I took over. Am having a great time.
Good to hear. Customers & drinking habits—anything different now from when you took over?
We sell more whisky than before. 14 yrs ago we had only 5 malts, now we have 380; the trend seems to be for more sherried whisky.
That’s some increase! Any thoughts on why an interest in sherry matured?
I think it’s because they may be sweeter and easier to drink.
Fair point—easier than some Islays for some people! Years ago the bar was known for real ales rather than whisky. Still big on beers? Numbers?
We are still big on ales—800 different beers a year and we host 4 ale festivals each year.
Busy life. Noticeable whisky industry price increases in shops in recent times. Have these affected you much, or bars generally?
Not a bit. People who drink good whisky know it comes at a cost and the older, the dearer.
Scottish government keen to get minimum unit pricing for alcohol in shops. If it happens, how would that affect your business: good or bad?
Not at all—people will still want to go out to the pub to meet friends. Most shops don’t sell the range of beer and spirits that we do and I think the plan is a good thing.
Why a good thing?
We have a problem in this country and in others with alcohol that we should do something about. Pricing is not the only answer but it’s a start.
Fair enough. You’ve won many awards as a whisky bar. How important are they and do they help increase business?
It’s great for me, staff and customers. We take pride in the pub’s achievements. The more you win, the more new customers come, but it’s hard work keeping high standards.
Much to live up to! Your best selling whiskies? And the rarest / most expensive?
Best selling: Macallan, Bowmore, Dalmore. Rarest is 70 YO Glenlivet at £900 per 35ml measure.
That one’s not for my pocket. What info do you have in bar to help customers choose a whisky?
Whisky menu on iPad with tasting notes, whisky distilleries and region map…and great staff!
Good innovation. How important is staff training on whisky and what form does it take?
Staff get basic training from day 1 and for the rest of the time they are here. They go to whisky tastings, distillery visits, but most training takes place in-house.
Does that include in-pub training sessions from brand owners too?
Yes, we have a lot of tastings in the pub with brand owners; we also have 2 whisky clubs that I run—and staff can join in—and 3 other whisky clubs which meet here.
I was going to ask about the Whisky Clubs: what do they do?
At my two, we have dinner and a 6-malt sampling. I do most of the tasting but bring in brand owners too.
And the other clubs?
The other clubs don’t have a meal each time, but always a 6 dram tasting with brand owners. The 5 clubs have a combined membership of 320.
Wow! How much tourist business do you get and does any one country predominate?
We are a global pub in terms of brands and customers. We get a lot of people from the US & Europe as we’re in various guides.
I hear one outside interest is football. Any particular team and why?
It’s Glasgow Celtic. I was taken along to Celtic Park aged 8 and have been going ever since: 47yrs. It’s in my blood; just like the pub business.
Giving away your age! Another interest is dining out. Where’s the best place you’ve eaten a) at home and b) overseas?
Best place in UK, Roux at the Landau: 5 courses and 5 malts, private dining room with Albert Roux as host. Overseas: the Waldorf Astoria, New York.
Good taste. From any international travels, do you think issues for bar owners are pretty much the same everywhere?
Yes, we all want more trade mid-week and have too much at weekends, but we must always stay on the ball with new trends and products/producers.
Any ideas gathered or lessons learned from bars elsewhere?
You always pick up something. Every bar has a unique selling point. Was in an Amsterdam bar and they let me go behind the bar to get my photo taken. Been doing that 20 years.
Anything you’d like to do at the Bon Accord that you currently can’t?
No, I’m very happy with the way we are trading.
Any future ambitions there?
Ambition? Yes: to do what am doing for as long as I can. This is THE LIFE.
Lastly, what’s your desert island dram? Just one!
Old Pulteney 23 YO sherry cask. There’s a picture of a boat on the label; that could be handy! LOL.
Oh, very funny…
The other night I was sitting at a bar, a hushed, handsome space awash in wood and leather, tucked behind an unmarked door upstairs from a more raucous joint dominated by a flat screen blaring the World Cup and gals in too-tight dresses. I could have been in a speakeasy-style lair anywhere in the world, except I was in Taipei, at Alchemy, in the slick Xinyi district. It is here that I watched a large group of dolled-up friends, tipsy from a wedding, keep the party going by passing around a bottle of the Macallan and greedily sipping it like water.
Soft and sweet, the Macallan, I learned a few days prior, is the single malt of choice among Taiwanese imbibers. Instead of feeling fierce pride for the lovely whiskies being turned out at Kavalan, a little over an hour away from Taipei, many locals are skeptical of single malts from their homeland.
It is precisely this status-conscious demographic González Byass is targeting with its brand new whisky, Nomad. The Spanish wine producer, best known for its range of sherries, has decided to amp up its spirits collection—most notably marked by the London No. 1 Gin—with Nomad, a whisky crafted by Whyte & Mackay’s zany Richard Paterson.
Like any Scotch whisky, this cross-cultural creation is distilled, blended, and aged in Scotland. But then, in a romantic twist, it’s shipped off to balmy Spain, where it’s finished in Pedro Ximénez casks. For the debut of Nomad, González Byass first set its sights on Taipei, the world’s sixth-largest single malt market. The Taiwanese, I am told, have the power to turn their drink-swilling neighbors in Hong Kong and China onto new products and habits, making them an even more captivating audience.
For Nomad’s grand launch, González Byass brought writers from around the world—luckily including myself—to Taipei to taste the much-buzzed whisky, discover what makes it stand out from the bombardment of new releases on retail shelves, and give them a feel for Taiwanese nightlife in between dumpling runs.
Via Skype, Paterson, donning a suit in the middle of the night, UK time, walked curious attendees through the particulars of Nomad. For example, he told us he melded 25 single malt and six grain whiskies that are 5 to 8 years old for this blend, then aged it in oloroso casks for a year. Once shipped off to Spain, the whisky did time in the Pedro Ximénez barrels for up to another year. Although most bottles of booze boast 40 or 43% ABV, Paterson determined Nomad’s should be 41.3%.
I was almost scared to taste it. After all this anticipation, imagine what a letdown it would be to fly across the globe for a swig of something hot and one-dimensional. But it did not disappoint. Paterson kept emphasizing its heady raisin and marzipan notes, and the pastry buff in me was delighted each rich sip conjured a loaf of warm Christmastime Stollen and brown sugar-packed sticky toffee pudding.
He also encouraged us to resist the urge to plunk ice cubes into our glasses, and drink Nomad neat. This will not be a problem because it’s an approachable whisky, something I would have no qualms about opening on a Tuesday night while in yoga pants. At around $45, it’s not something you need to save for a white tablecloth feast, but guests will most certainly relish it when you bring it over for a potluck. They may even strike a conversation over how closely the flat, flask-like bottle resembles Knob Creek’s.
Perhaps the most interesting element of Nomad’s arrival is that it has given González Byass the opportunity to carve out a new category of whisky called Outland. The name exemplifies wanderlust and adventure, and it’s interesting to think of the future cross-cultural collaborations that will undoubtedly ensue. More whiskies making their way to Spain is inevitable— González Byass may have the audacity to take Scotland-meets-Spain whisky to a new level, but Paterson is no stranger to such international tinkering; he did this before with Sheep Dip—yet is Irish whiskey aged in Kentucky a possibility? Or maybe Japanese whisky will get sent off to Canada?
Lest bartenders be excluded from all of this intrigue surrounding Nomad, the González Byass folks asked local barkeeps to show off how they weave the whisky into clever concoctions. One of them even found Fireball a fine complement. With Paterson’s words warning us to drink it in as pure a state as possible, I only wanted to try it in an Old-Fashioned. Surely Nomad will make a splash on Taipei’s burgeoning craft bar scene—and New York’s when it hopefully hits the States in the fall. Dessert notes coupled with a European fairytale of a narrative might just get Taipei bar-goers to look beyond their beloved Macallan.