Archive for the ‘American whiskey’ Category

A Clarification About our Awards

Tuesday, December 9th, 2014

john hansellThere’s been a bit of discussion in the comments sections of the Awards posts (and in other social media) that makes it apparent that our Awards process may be misunderstood by a few of you, so I’d like to clarify. While we do review whiskies all year long, and give them points—ratings—the awards don’t necessarily go to the highest-rated whisky for a given category. There’s a bit more to it than that. This holds true, not just for my American Whiskey of the Year pick, but for all the award selections.

We noted this in our December 3rd awards announcement: “As always, these awards are not simply assigned to the whiskies that get the highest ratings in our reviews. The winners might be the highest-rated, or they might instead be the most significant, or the most important, or represent a new direction for a category or niche. The awards process is not, in short, a mere numbers-based formula. It is recognition of a combination of excellence, innovation, tradition, and…simply great-tasting whisky.”

For example, my American Whiskey of the Year pick, the Sazerac 18 year old, wasn’t my highest-rated American whiskey in 2014. There were other whiskeys I gave higher ratings.

The reason I chose the Sazerac 18 yr.  involved the other factors. For example, the way that Buffalo Trace had the wisdom to “preserve” a classic whiskey in its prime by transferring it to stainless steel tanks, rather than let it age further (and likely deteriorate) in oak barrels, deserves recognition. It’s something that consumers have been benefiting from for many years now, and it’s a key reason why I picked this whiskey. That’s the “tie breaker” I mention in my awards write-up. (And I use the phrase “tie breaker” in a figurative sense.)

I hope this helps everyone understand how we chose our awards. It’s not just about picking our highest-rated whiskies for the year; we could do that with a simple sort of the ratings database. It’s about identifying the landmark whiskies for a year, the ones that made a difference, or signaled a change…or in this case, a welcome and important non-change.

 

21st Annual Whisky Advocate Award: American Whiskey of the Year

Saturday, December 6th, 2014

Sazerac Rye 18 year old, 45%, $80

There were many great American whiskeys released this year, including Booker’s 25th Anniversary release, Four Roses Limited Edition Small Batch, and George T. Stagg. However, the winner this year is Sazerac Rye 18 year old.BTAC 2014 Sazerac 18

It’s not just because it’s a classic—I rated it a 95—but it’s also because of its consistently high quality, year after year. That, to me, is this year’s “tie-breaker.” Limited edition whiskeys change from year to year. Since Sazerac Rye 18 year old was first introduced in 2000, its quality has mostly been stellar and unwavering.

Part of its consistent quality is the fact that, for many years now, the whiskey released is essentially the same. About a decade ago, the management at Buffalo Trace realized there was a gap in production between the 18 year old rye they had in stock and younger rye that would eventually become 18 years old. The demand for ultra-aged rye whiskeys caught distillers by surprise.

Rather than do what other distillers did, which was to continue aging their rye and selling it at older ages to the point where the whiskeys were past their prime and over-oaked, Buffalo Trace wisely transferred theirs to stainless steel tanks, releasing a limited amount of it annually until fresh stocks of 18 year old come of age in 2016.

Some whiskey elitists have viewed the tanking as a negative, seeking out the pre-tanked bottlings on the secondary market. However, the whiskeys are nearly identical in quality and flavor profile, and Buffalo Trace should be congratulated for preserving a great whiskey while still in its prime, rather than selling it at an older age, higher price, and lower quality.

Why is this whiskey so great? It’s fully matured but still maintains its vibrancy. It’s complex too, brimming with allspice, clove, mint, and cinnamon. The spice notes are balanced by soft vanilla, soothing caramel, and candied summer fruits. It’s impeccably balanced and a pure joy to drink! —John Hansell

Check back tomorrow. We’ll be announcing the Canadian Whisky of the Year.

21st Annual Whisky Advocate Awards To Be Announced

Wednesday, December 3rd, 2014

The Whisky Advocate Awards are less than two days away!

wa.awards2015.logThe 21st Annual Whisky Advocate Awards will be announced right here on the Whisky Advocate blog beginning this Friday, December 5th. As the awards are announced, they will automatically be published to the Whisky Advocate Facebook page and the Whisky Advocate Twitter feed (@whiskyadvocate).

The Whisky Advocate Awards exist to recognize excellence in the world of whisky. Now in its 21st year, the program is simply about the world’s greatest whiskies and distilleries, and the individuals who make and promote them. As always, these awards are not simply assigned to the whiskies that get the highest ratings in our reviews. The winners might be the highest-rated, or they might instead be the most significant, or the most important, or represent a new direction for a category or niche. The awards process is not, in short, a mere numbers-based formula. It is recognition of a combination of excellence, innovation, tradition, and…simply great-tasting whisky. Our Buying Guide reviewers reach a consensus on the awards.

These awards are the oldest and longest-running annual whisky awards program. We taste and sample over the course of the year, at year’s end we consider and confer, and then we make our decisions based solely on the merits of the whiskies…as we have done for over twenty years. We give you our word: that’s how it will continue to be.

Stop by each day to get the winner and read our commentary on the whisky and why it was chosen. Here’s how they’ll roll out, starting with the American whiskeys and progressing around the world to wind up in Scotland, followed by our Lifetime Achievement Awards and the big one: Distiller of the Year!

December 5: Craft Whiskey of the Year

December 6: American Whiskey of the Year

December 7: Canadian Whisky of the Year

December 8: Irish Whiskey of the Year

December 9: Japanese Whisky of the Year

December 10: World Whisky of the Year

December 11: Blended/Blended Malt Whisky of the Year

December 12: Speyside Single Malt of the Year

December 13: Islay Single Malt of the Year

December 14: Highland/Islands Single Malt of the Year

December 15: Lowlands/Campbeltown Single Malt of the Year

December 16: Lifetime Achievement Awards

December 17: Distiller of the Year

Be sure to check in every day, and join the lively conversation that these announcements always set off!

Top 10 Rated Whiskies from the Winter 2014 Issue

Friday, November 14th, 2014

The winter issue of Whisky Advocate will be hitting the newsstands in early December. Until then, here’s a sneak preview of the Buying Guide. It’s our biggest yet; with 157 whiskies reviewed. We start with #10 and conclude with the highest-rated whisky of our winter issue.

#10: Port Ellen 1978 35 year old (Diageo Special Release 2014), 56.5%, $3,300Port Ellen bottle&box LR

Scarcity and the secondary market have driven prices up, so either buddy-up to a rich guy, or club together to try this. Greater levels of cask interaction have added an extra dimension to a whisky that is often skeletal. The smoke’s in the background, as salted cashew, peppermint, tansy, furniture polish, and smoked meats take center stage. The palate is slowly expanding and smoked, with some chocolate and wax. Finally, a Port Ellen that is truly, classically mature. A killer. (2,964 bottles)—Dave Broom

Advanced Whisky Advocate magazine rating: 93

Makers Cask Strength Hi Res

#9: Maker’s Mark Cask Strength, 56.6%, $40/375 ml

This is what I wish the standard Maker’s Mark would be: more mature, spicier, more complex, and with a richer finish. Caramel kissed with honey provides a base for marzipan, cotton candy, cinnamon, clove, and a balancing leather dryness on the finish.–John Hansell

Advanced Whisky Advocate magazine rating: 93The Joker Hanyu color label

#8: Ichiro’s Malt The Joker (distilled at Hanyu), 57.7%, £220

The final deal of Ichiro Akuto’s Card Series, a vatting of Hanyu from 1985 to 2000. Highly complex, rich, and distinctly resinous. Typical Hanyu boldness, but with balance struck between weightiness, finesse, and intensity. There’s old cobbler’s shop, tack room, light smoke, incense, ink, autumn leaves, and sumac. The palate is sweet to start, then builds in power. Leathery, then praline, damson jam, and fine tannins. Water loosens the tension, allowing yuzu to show. What a way to go out.—Dave Broom

Advanced Whisky Advocate magazine rating: 93

#7: Four Roses 2014 Limited Edition Small Batch, 55.9%, $90

C2014LESmallBatch_Frontrisp clove, cool mint, cinnamon, and cocoa mingle with glazed orange, honeyed vanilla, caramel, and maple syrup. Polished oak and leather on the finish balance the sweet, fruity notes. More oak and dried spice when compared to the 2013 release (our American Whiskey of the Year) and, while not quite reaching that caliber (it’s not quite as seamless, drinkable, or complex), it gets close. Very impressive. –John HansellSpeyside

Advanced Whisky Advocate magazine rating: 93

#6: The Exclusive Malts Speyside 25 year old 1989 Cask #3,942, 48.8%, $200

Exclusive Malts doesn’t disclose the source distillery, which doesn’t matter when you’ve got a whisky that’s a gem. Apple cider defines the nose and is complemented by ginger and iris. On the palate this whisky is lush but well balanced, with honeyed apple cider, gingerbread cookie, and baked apple. In the center of all this is rancio. Ginger spice and baked apple define the finish, which is long and flavorful. Great balance, integration, and flavor. What more can you ask for? (U.S. only)
Geoffrey Kleinman

Advanced Whisky Advocate magazine rating: 93

Park_Avenue-Rare_Release#5: Scotch Malt Whisky Society Hunting Hound on Holiday 4.180 24 year old 1989, 51.3%, $225

From the nose you can tell this is a special whisky, with old, dark, lacquered wood, dusty cigar box, and sea salt combined with dark sweet cherry and a hint of rancio. On the palate it gets even better, with lush, dark cherry perfectly balanced and integrated with oak spice, salt, and peat smoke. There’s clear rancio in the center of it all that’s utterly delicious. This stunner finishes with a long, slightly spicy, and entirely lovely finish. (Park Avenue Liquor only) – Geoffrey KleinmanMidleton Very Rare 2013 Bottle

Advanced Whisky Advocate magazine rating: 94

#4: Midleton Very Rare 2014, 40%, $125

Make way. The nose is dense, oily, and mesmeric. There’s vanilla, sure, but it’s the intense aroma of vanilla pods split and scraped at knifepoint. Woven around it, there’s crème caramel and heavier cinnamon flaring at the margins, softening with dilution, but remaining sweet. The first Midleton to carry master distiller Brian Nation’s name is purposeful and assured, lacking some of the sappiness of the 2013 release. This is less about succession, more an emphatic statement of intent.—Jonny McCormick

Advanced Whisky Advocate magazine rating: 94

Brora bottle&box#3: Brora 1978 35 year old (Diageo Special Release 2014), 48.6%, $1,250

This is the 13th annual release of Brora, which has been aged in refill American oak and refill European oak casks. Hessian and hemp on the early nose, with a whiff of ozone, discreet peat, and old tar. Fragrant and fruity notes develop, with ripe apples, and a hint of honey. The palate is waxy, sweet, and spicy, with heather and ginger. Mildly medicinal and smoky. Dries steadily in the finish to aniseed, black pepper, dark chocolate, and fruity tannins. (2,964 bottles) —Gavin SmithSazerac Rye 18

Advanced Whisky Advocate magazine rating: 94

#2: Sazerac Rye 18 year old, 45%, $80

A benchmark aged rye whiskey, and it’s similar in profile to recent releases. Vibrant for its age. Complex too, brimming with allspice, clove, mint, and cinnamon. The spice notes are balanced by soft vanilla, soothing caramel, and candied summer fruits. Impeccably balanced, and a pure joy to drink! –John Hansell

Advanced Whisky Advocate magazine rating: 95

Stagg#1: George T. Stagg, 69.05%, $80

No age statement, but distilled in 1998. A beautiful expression of Stagg, and a lot of bourbon for your buck. Easy to drink with the addition of water, showing caramel, nougat, dates, dark chocolate, polished oak, along with a hint of leather and tobacco. Slightly better than last year’s release—richer, thicker, and more balanced. I’m enjoying Stagg’s more rounded, less aggressive demeanor of late. A classic! –John Hansell

Advanced Whisky Advocate magazine rating: 96

Orphan Barrel Whiskey Release #4: Lost Prophet

Thursday, November 13th, 2014

john hansellI wrote about Diageo’s first three Orphan Barrel (OB) whiskeys here back in January. The whiskeys in these bottlings are from either the old or new Bernheim distilleries. As I noted in that post, they vary in taste, from the easy-drinking, gently sweet, and uncomplicated Barterhouse to the dry, spicy, and oak-driven Old Blowhard. Rhetoric, the third release, is somewhere in between those two flavor profiles, but leaning more towards Old Blowhard.

While all three releases are certainly interesting to taste and diverse in flavor profile, I feel that they never quite lived up to their potential. To me, the optimal whiskey is some blend of these three whiskeys, with Barterhouse being the primary component.

Orphan Barrel_Lost Prophet Bottle Shot_Lo ResProving that they have other arrows in the quiver, Diageo’s newest OB release, Lost Prophet, is not from one of the Bernheim distilleries, but is rather a 22 year old whiskey distilled in 1991 from what was then the George T. Stagg distillery (now Buffalo Trace) in Frankfort, KY. Similar to the previous OB releases, this whiskey spent time maturing in the old Stitzel-Weller warehouses in Louisville, KY (since 2006 for Lost Prophet), and was bottled in Tullahoma, TN, at the George Dickel distillery.

The mashbill for Lost Prophet is 75-78% corn, 7-10% barley, and 15% rye. Serious whiskey enthusiasts will note that this is similar to the “high rye” #2 mashbill formula at Buffalo Trace—the mashbill similar to such brands as Ancient Age, Elmer T. Lee, and Blanton’s. It’s bottled at 90.1 proof (45.05% ABV) and will list for about $120. Similar to Old Blowhard, this will be a one-time release.

Most importantly, how does it taste? I’m happy to report that it’s the best of the four Orphan Barrel whiskeys released to date. It’s complex, balanced, easy to drink, and not over-oaked. Sure, the spice notes (clove, cinnamon), oak grip, and notes of leather are there (it is a 22 year old whiskey, after all), but there’s also a lovely lower layer of sweeter notes (honeyed fruit, soft vanilla, coconut custard) for balance, along with a nice creamy texture. It’s a complete package.

This is a 22 year old whiskey. If you don’t like well-aged whiskeys, you might want to try it before you buy it. But, when compared to other 20+ year old bourbons in this age range (Pappy Van Winkle 23 yr. old, Elijah Craig 23 yr. old, Old Blowhard 26 yr. old, etc.), this whiskey has them beat. And at $120, it’s a better value.

Balcones Founder Chip Tate Speaks Freely

Sunday, October 19th, 2014

Author - Fred MinnickFor the first time since the August 8 temporary restraining order, Balcones founder Chip Tate can talk about the legal battle with his investors. He’s been under a strict media gag order, while the 170th Texas State District Court sorts out the disagreement between Tate and his investors, who alleged Tate refused to attend board meetings and even threatened to shoot board chairman Greg Allen. Allen’s legal team changed the terms of the temporary restraining order, Tate says, and he spoke with Whisky Advocate writer Fred Minnick.

By now, you’ve likely seen Allen’s side of the story. The Waco Tribune, bloggers and other media outlets published court records. We wrote about it here on the Whisky Advocate blog.

Last year, Balcones announced expansion plans for its Waco, Texas, distillery, making it one of the most-promising craft distilleries with award-winning whiskey. Allen and Tate seemed to be off to a great start and the press release offered incredible optimism with Tate saying he was “proud” to call Allen a partner.

But other things happened in a short span of time, and this is Tate’s side of that story.

Minnick: What is going on?

Tate: They were trying to make my life exceedingly difficult for a long while. Ever since I gave them a sense of what the distillery expansion was going to cost, I got a weird vibe from them. These are the investors who were going to fund the expansion. That was the whole premise. So, when I got that weird vibe, I put the figures together … {showing} cost between now and 2022, which is a lot. They’ve been strategically trying to get me out of the business since that moment. They’ve tried different proposals and board action to take over the company.

What did they do specifically?

{They were} trying to make me do daily reports on daily things and busywork. The board meetings were supposed to be quarterly, and this idea of having board meetings every few days is nonsense in itself and is clearly to make my job {difficult}. They said, ‘we need to get multiple signatures on checks and put new policies on travel.’ I asked: ‘Is there a problem with travel?’ This was draconian control based on no particular complaint. I proposed to diligently come up with a plan to meet their concerns. The {board} said, ‘nah. Voted. Seconded. Boom, boom.’ At this moment, they weren’t even going through the motions anymore.

Chip Tate

Chip Tate

But in July 2013, the investors come in and have majority control. Don’t they have final say in what goes on at Balcones?

No. When you do an LLC, you have an operating agreement on how you’re going to conduct business. Basically, there was some explicit language in there. They can’t do certain things without my consent. They can’t financially reorganize the company, which they were trying to force.

They said you threatened to shoot an investor.

The whole thing was absurd. When it came to August 5, Greg Allen stormed into the distillery very abruptly with two sheriffs. They said they would give me a period of time to buy them out. … When I got the written leave agreement, I was to resign presidential powers during a 60 day period and thereafter. When they couldn’t coerce me… they made up a bunch of allegations. They said I wouldn’t give them the passwords they literally took at gunpoint. They said I kept coming to the distillery. And they said I threatened to shoot Greg Allen. The funny thing is they said they had me on tape, and I said, ‘great!’ because I know what I said. What I actually said was in reference to when Greg busted into the distillery, I was talking to one of the other investors and said ‘I could have shot the guy, but instead I greeted him, was friendly and talked to him even though he had two armed sheriffs standing next to him.’ If you listen to the whole conversation, I told {the investor}: ‘you better do something about Greg here. They keep flying off the handle and going crazy, and I try to keep calming everybody down and react reasonably, and we don’t get anywhere. Rinse and repeat. But this can’t go anywhere good, and it can go somewhere bad.’

Do you have plans to sue them for slander or damage to your reputation?

One of the fun things about the American justice system: as long it’s done in court filings, you can’t get libel or slander. … with a few exceptions. I’ve been waiting for the circus to settle down. They released me from the injunction. They’re more envious to strike a deal than originally. Leading up to all of this was me saying, ‘hey, I don’t think you guys are happy. If that’s the case, one of us needs to leave the business before this gets to a bad place. I’d really like to stay. I founded it. If you are amendable, let’s talk about that.’ They turned down one offer after another.

What’s the end result here? Somebody buys them out? You get bought out?

If there’s a future, any future for Balcones, one of us is leaving. That’s for sure…. We {both} have to accept what we planned to happen isn’t happening. We’re not going to live happily ever after. We need to act like grown ups. And what we need to do is basically not pull each other’s shit out in the front yard, light it on fire and have the cops call—that’s not the productive way to handle this. {Using a divorce analogy…} What we need to figure out if I’m going to keep the house or they’re going to. The relationship is over. Let’s be grownups and focus on how we’re going to move forward. Either they’re going to buy me out and let me have my freedom. Or they get bought out.

How much to buy you out? And how much to buy them out?

I can’t really talk about that because we’re about to go in mediation.

The consensus from many lawyers on social media is for you to not fight this and to start fresh when the non-compete ends. Why have you decided to make this your life’s fight?

This isn’t my life’s fight. It’s been going on for two months. Anybody who thinks this is World War III has never started a craft distillery. This is a major skirmish approaching a war.

You’ve had an overwhelming amount of support from colleagues. Somebody even started a crowdsourcing site to raise money for your legal fees. What has that meant to you?

That’s huge. I can’t say how much I appreciate it! The support has kept me going. But still, even for legal reasons, I can’t really spill the beans, but these guys have a lot stuff they don’t want me to say. They misunderstood how carefully I handled them for the last six months. I am not going to lay down for these guys and let them steal from me.

The charge of contempt of court…

That was partially a reporting error. The judge makes final decision, {saying} I’m going to hold you in contempt, but I have some real questions on the restraining order.

Speaking of the restraining order, the temporary injunction is on hold now. What does that mean?

Basically, I’m not allowed to lie, cheat and steal or knowingly hold property that belongs to them. I can’t call up the employees and can’t go to the distillery. They have changed their tune very notably. They ran a full-court press on me and now that they’re done, I’ve said, ‘Is that the best you got?’ Because when I start talking, I want to make sure everybody is listening.

Are you confident you’re going to win?

Yes. If the law works the way it should, we would come to some sort of resolution. I just want to make whiskey again.

Fall Bourbon and Rye Whiskey Limited Release Overview

Wednesday, October 15th, 2014

john hansellIt’s that time of the year again, when all the major bourbon and rye whiskey producers release their limited edition whiskeys, and consumers scramble to find a bottle before they disappear. Your time and money is valuable, so I thought I’d offer some guidance on which whiskeys you should concentrate on buying.

I’ve tasted my way through the following whiskeys. My formal reviews will appear in the upcoming issue of Whisky Advocate, but here’s a quick overview of them, in no particular order.

Buffalo Trace Antique Collection (All $80, in theory)

My favorite of the line is the George T. Stagg (69.05%). The past two years have shown a tamer, more rounded and balanced Stagg. This one is a classic.

2014 BTACSazerac 18 yr. Rye (45%) is similar, but not identical to, previous years. And I really like it. To me, it’s still the best example of a classic ultra-aged rye that’s released on an annual basis. This is the same whiskey that has been tanked in stainless steel and released annually over the past several years. It will continue to be until a new 18 year old rye is released in 2016.

Both Eagle Rare 17 yr. (45%) and William Larue Weller (70.1%), two perennial favorites, are showing more age this year. By this, I mean there’s more wood spice and resin. They are still very nice whiskeys, but to me the extra oak is gratuitous and unnecessary.

The disappointment this year is the Thomas H. Handy Rye (64.6%). This year’s release is thinner and less complex on the palate, with unintegrated spice, botanical, and feint vegetal notes dominating. Yes, there are other flavors thrown in the mix, but it doesn’t help. It’s easily the weakest whiskey in this year’s Antique Collection.2014LESmallBatch_Front

Four Roses 2014 Limited Edition Small Batch, 55.9%, $90

There’s more oak and dried spice when compared to the 2013 release (our American Whiskey of the Year last year) and, while not quite reaching that caliber — it’s not quite as seamless, drinkable, or complex — it gets close. Very impressive.

Maker’s Mark Cask Strength, 56.6%, $40

This is what I wish the standard Maker’s Mark would be: more mature, spicier, more complex, and with a richer finish. This was initially released in Kentucky only, but rumors are that it will get a wider distribution in the future. The best Maker’s Mark since the now extinct Maker’s Mark Black, which was released for export only. If you can track down a bottle, you won’t be disappointed. (Except for the fact that it’s only in 375 ml bottles.)

2014_OFBB_BottleMockupElijah Craig 23 year old (Barrel No. 26), 45%, $200

Yes, 23 years is a long time to age bourbon. And yes, there’s plenty of oak influence. But there’s an underlying sweetness that balances the oak spice (with this particular barrel; others may vary). I suspect that some of the barrels will be over-oaked, so be careful.

Old Forester Birthday Bourbon (2014 release), 12 year old, 48.5%, $60

This whiskey’s signature over the last several years has been wood-dominant, with plenty of dried spice (the exception being the 2013 release which I really enjoyed—it was chock full of balancing sweetness). The 2014 release is similar to the pre-2013 releases; a dynamic bourbon, but still leaning heavily on the oak spice.

Angel’s Envy Cask Strength (2014 Release), 59.65%, $170

The third cask strength release and, like all Angel’s Envy bourbons, this one is finished in port barrels. When compared to the standard Angel’s Envy bourbon, this Cask Strength release is packed with more of everything: alcohol, port fruit notes, and oak. While very enjoyable, it pushes the envelope of the port finishing. If port finishing isn’t your thing, then you should think twice before buying.Parker's Heritage Collection Original Batch 63.7

I’ll throw in a bonus wheat whiskey too:

Parker’s Heritage Collection Original Batch Wheat Whiskey 13 year old, 63.7%, $90

Heaven Hill’s straight wheat whiskey, Bernheim Original, is a pleasant drink, but I always felt that some extra aging and a higher proof would give it additional richness and complexity to propel it to a higher level. That’s what this new whiskey accomplishes. If you like Bernheim Original, you’ll love this one.

The Templeton Case: let’s talk to a lawyer

Friday, October 10th, 2014

Author - Fred MinnickIn 2011, I visited Templeton, Iowa, to cover this hot rye whiskey that Al Capone supposedly liked. At the time, I knew they were purchasing bulk whiskey from what was then called LDI, the former Seagram’s facility that gave the world beautiful 95% rye mashbills, but I had never approached the company about this. Going into the interview, I half expected them to be confrontational. Keith Kerkhoff, one of the founders, played college football and tried out for an NFL team; and let’s just say, his lineman shoulder could crush my spine.

When questioned, the founders, Kerkhoff and Scott Bush, were honest about the sourcing process and I later found their sales reps disclosed the whiskey origins. Templeton even disclosed this fact on its Website, producing a video captured at the Lawrenceburg, Indiana, and openly discussed the fact on social media. But for whatever reason, the company never disclosed the state of distillation on the label. Instead, Templeton sold the small town’s infamous Prohibition heritage.

Templeton Rye facility, Templeton, Iowa

Templeton Rye facility, Templeton, Iowa

For years, even before my 2011 visit, hardcore whiskey geeks called foul on Templeton’s marketing efforts and even the locals didn’t care for Kerkhoff’s and Bush’s attempt to bring unwanted attention to the town. (Illicit whiskey makers are still very much in business in Templeton!) All of this would be chalked up as noise or slightly bad publicity for a brand that became a consumer favorite.

But all of that changed in late August when a class-action lawsuit was filed against Templeton in Cook County, Illinois, citing “deceptive marketing practices” and that Templeton violated consumer protection laws. The plaintiff claimed he was led to believe that the whiskey was made in Iowa. This lawsuit was given the green light to proceed and two additional class-action suits have been filed, with the most recent one being filed this week in Iowa. Tito’s Handmade Vodka faces a similar class-action lawsuit.

To understand the depths of the suit and how it might impact the future of the spirits business, I reached out to attorney Joel Ard, an alcohol attorney specialist with Foster Pepper PLLC in Washington.

 

Templeton’s labels were approved by the TTB. How are they vulnerable for a lawsuit?

That’s a surprise often to a lot of people, certainly among smaller craft producers, but even among larger industry participants. This idea that a government agency has approved their label and then they can get called on it for alternative reasons is often a bit of a surprise.

But isn’t the TTB to blame for not catching an improper label?

The reality is that the TTB is the Tax and Trade Bureau. It’s not a Trademark Office. It’s not an advertising office. It’s not a consumer protection office. They collect excise tax on ethanol and their primary concern about labels is the Surgeon General’s Warning is on it, in the right font, in the right size and that the percent alcohol by volume is accurate.

There are a bunch of regs about no obscenity, no nudity. Just start looking at wine labels for what stuff gets through. There’s a lot of stuff that can get through because they’re pushing through an enormous volume of labels; it’s not primarily a place for judging the accuracy of advertising or the consumer protection statute.

On to the Templeton lawsuit; what kind of case is this?

This is the kind of lawsuit where an enterprising lawyer dug up a more or less imaginary plaintiff and sued somebody and he’s going to pocket the proceeds in the lawsuit. Pick a consumer protection statute, find a target and sue them.

Will this become a trend? Will enterprising lawyers start dissecting alcohol labels for violations of regulations?

I’m sure that somebody could come up with a particularly creative claim that somehow a person was harmed because a wine bottle had the American Flag on it and that’s forbidden by regulation. Hard to imagine what the claim would be. What’s the harm to the consumer?

Now, you might say, where is the consumer harm that Tito’s Vodka is actually not made by hand; and Tito’s lawyers and the California consumers will fight over that, maybe there’s no harm, maybe it’s really bad.

It seems like a lot of this could be fixed if the TTB had more authority to police labels for accuracy.

I’m not sure it would be the best thing to try to give them more authority. A few years back, the label approval backlog was huge. If you are a startup distillery, you need to get a label approved pretty quickly. You can’t afford to wait for your label and don’t have the resources to have an army of lawyers push them through TTB. So, my concern would be if you were [adding] authority, it’s going to hurt the little guys. The big guys have plenty of resources to get their labels approved. The way the TTB runs now, there’s very little legal involvement.

The TTB right now is a decent balance of making sure that people aren’t misled about alcohol content, poisoned by strange distilled spirits, or blatantly obviously lied to on labels. For the broad run of the rest of it, most of the time the market’s going to sort it out. If you put bad stuff in a bottle, it doesn’t matter how cool your label is.

The Balcones Controversy

Thursday, September 11th, 2014

Author - Dave BroomThe 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.

Chip Tate

Chip Tate

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?

Photo: darkrye.com

Happy 60th anniversary, Jimmy Russell!

Wednesday, September 10th, 2014
Young Jimmy Russell: all-Kentucky basketball player

Young James Cassidy Russell: all-Kentucky basketball player

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.”

Real Wild Turkeys, real Jimmy Russell

Real Wild Turkeys, real Jimmy Russell

“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 Russell - high res in warehouse

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.

Author - Fred MinnickThat 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.)

Jimmy and plant manager Rick Robinson

Jimmy and plant manager Rick Robinson

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.

Jimmy and his brother, Dickie Russell

Jimmy and his brother, Dickie Russell

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.

 

 

Jimmy's family: his wife, Joretta, and two sons: Mike (on the left) and Eddie

Jimmy’s family: his wife, Joretta, and two sons: Mike (on the left) and Eddie

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.