Craft Distilling on the Rise

by LeNell Smothers, Posted Jun 11th 2010 @ 11:00AM

Tuthilltown Distillery. Photo: LeNell Smothers

With the legalization of making beer at home, microbrewing took off as homebrewers figured out how to sell their beer in the commercial marketplace. Whiskey is distilled beer, so it only makes sense that the passion of some of these brewers led them to diversify their business to also include distilled products, as well.

With home distilling still illegal, craft distilling isn't necessarily following the same growth pattern as craft brewing, but you will find small brewers such as Oregon's Rogue Ales and California's Anchor Brewing distilling innovative spirits such as single malt high proof rye and spruce gin. Like the craft brewers, many craft distillers are unfettered by tradition and shareholder profit pressure so they explore and create adventurous spirits that the big corporate distillers don't have the freedom to.

Bill Owens, President of the American Distilling Institute (ADI), can attest to the growth of small distilling in the US as the ADI now boasts around 1200 members. Even though many states have relaxed their fees for legal distillation, burdens of licensing, distribution, and taxes are still much heavier for hard liquor than wine and beer. Therefore the cost of small production can result in extravagant prices such as Charbay's hoppy whiskey, which costs over $300/750ml to Tuthilltown's Baby Bourbon, aged only a few months and priced over $40/375ml. Charbay will wait to release their whiskey until it's perfectly aged, but many small distilleries strapped for cash release their spirits very young (and with a little rough edge) because they simply can't afford to sit on product.

With the rise in interest in "slow food" and local agriculture, many customers have been willing to pay the higher prices to support smaller businesses. Sensing this, many more distiller hopefuls with little or no experience want to jump into the fray. Additionally, distilling companies at the forefront are getting taken under larger wings, as seen in the recent acquisition of many of the Tuthilltown spirits by William Grant & Sons, the company that also controls The Balvenie and Glenfiddich whiskies.

Our guess? With more and more competition in the market, only true craft distillers will survive while the newer wanabees will be relegated to offering souvenir bottles in a tasting room.

Filed Under: Trends, Food News, Drinks
Tags: alcohol, craft distilleries, distillers, whiskey

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Reader comments (Page 1 of 1)

6-11-2010 @12:40PM Gable Erenzo said... Thanks for the mention LeNell. For any of you who dont know, LeNell was integral to the early growth of the brand, and we couldnt appreciate her more.

-gable

http://www.youtube.com/watch?v=nrEIUbdOaJw
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6-11-2010 @3:26PM Joel Elder said... Awesome photo LeNell! That is (I think) in the distillery floor and represents nearly the entire early stock of barrels. Long gone by now. Quite an artifact.
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