March 23rd, 2011

The lines between established distillers and small craft distillers are becoming blurred

John Hansell

And they will continue becoming even more blurred in the future.

As the young, developing craft distilling movement matures and begins offering longer-aged whiskeys, they will compete with the established distillers’ products.

On the flip side, the established distillers are increasingly offering younger, and as is the case with Heaven Hill’s “TryBox Series” (shown in the picture), sometimes even unaged product for sale. In fact, distillers on both sides of the pond are selling unaged spirit.

Craft distillers comprise a rapidly growing, but still relatively low-production, market. I don’t think the large, established distillers have anything to worry about–yet. But they would be foolish to not pay attention.

Just take a look at the American craft beer market and you will see where craft distilling is heading. According to a recent Brewers Association press release, overall beer consumption is down, but the craft beer market continues to grow and capture market share.

The large brewers who made relatively bland pilsner-style beer are now making beer with more flavor–or forming alliances with craft brewers to compete with them.

You are witnessing the same happening within the whiskey industry. Small craft distillers like Stranahan’s and Anchor have been purchased by larger players in the drinks industry. And large distiller William Grant (owners of Glenfiddich and Balvenie) bought the Hudson whiskey brand from Tuthilltown Spirits, the Hudson Valley craft distiller.

Yes indeed, the lines between established distillers and small craft distillers will continue becoming more and more blurred in the future. For the most part, I think this is a good thing. It will be healthy for the whisky industry.

Will there be some downside? Sure! We will have to endure the “weeding out”  of the inferior brands and “fly by night” companies that will undoubtedly surface to make a fast buck in this growth market (as we witnessed in the early phases of craft brewing–and that cigar boom a while back).

But the upside is far greater–and well worth any temporary inconvenience.

Category: American whiskey,Bourbon,Microdistilleries,New Releases,Opinions,Rye whiskey Tags: , , , , 28 Comments

September 25th, 2010

This is just the beginning of craft distiller buyouts. Count on it!

John Hansell

I have so much rattling around in my brain right now, I’m putting up this bonus weekend post before my evil twin takes over on Monday.

This past year we saw the Anchor Distilling Co. sold to the Griffin Group. Then we also  saw Tuthilltown Spirits “Hudson Whiskey” brand sold to William Grant.

This is just the beginning. Count on it!

Make a list of the most reputable craft distillers (both here and abroad) who are putting out a clean product with strong business models, and I willing to bet that most all, if not all, have been approached by larger companies who want to buy them. In fact, I feel quite certain that there will be more announcements of alliances between craft distillers and larger companies in the future.

Why? Craft distillers need the money. They want to make a quality product, but they are also faced with mounting bills and need to put out something to pay off these bills. That’s why you’re seeing a lot of young whiskeys put out on the market–many of them too young!

An infusion of capital will allow them to invest in quality equipment, storage facilities, and barrels. They will be able to hire distillers (and consultants) who know what they’re doing. Moreover, it will allow them to age their product longer so it is fully matured before being put on the market. They will be able to increase production. Plus, the right buyer will get their product into distribution channels, increasing circulation–and sales!

It all makes sense. It’s going to happen. Again and again.

Care to take a guess at who you think will be next?

Category: Microdistilleries,Opinions Tags: , , , 18 Comments

June 4th, 2010

Tuthilltown Spirits and William Grant form alliance

John Hansell

I got this this morning. VERY interesting. Will we see more like this? 

PRESS RELEASE

 

TUTHILLTOWN SPIRITS ANNOUNCES NEW PARTNERSHIP 

June 2, 2010, 

Tuthilltown, Gardiner, NY 

TUTHILLTOWN SPIRITS ANNOUNCED TODAY the formation of a new partnership 

with 140 year old family owned W. GRANT & SONS of the U.K. for the production and 

worldwide distribution of TUTHILLTOWN’s HUDSON WHISKEY brand of handmade 

whiskeys. 

The acquisition also adds the first American whiskey to the William Grant & Sons 

portfolio, which already boasts category-leading brands such as the world’s most 

awarded single malt Scotch whisky Glenfiddich as well as The Balvenie Single Malt 

Scotch Whisky, Hendrick’s Gin, Milagro Tequila, Sailor Jerry Rum, Frangelico Hazelnut 

Liqueur, Stolichnaya vodka, and more. 

Since first being introduced in 2006, The Hudson Whiskey range has created a stir both 

within the industry and the bartending community, as well as among discerning 

consumers. In this short time, the micro distillery located in Gardiner, New York quickly 

earned international acclaim not only for the quality of its products and innovative 

packaging and marketing, but also for its pioneering spirit – it is the first whiskey 

distilled in New York since Prohibition, and is the first ever New York State-produced 

bourbon whiskey. 

“We are both excited and proud to have added the Hudson Whiskey range to our awardwinning 

portfolio.” said Simon Hunt, Managing Director – North America, William 

Grant & Sons. “When our founder William Grant first built his distillery by hand in 

1886, he had one dream: to create the best dram in the Valley. That dram became 

Glenfiddich and that valley was the Valley of the Deer in Speyside. More than a century 

later, history is repeating itself in Gardiner as the Hudson Whiskey range becomes a part 

of the William Grant & Sons family. This time, the dram is Hudson Whiskey and the 

valley is the Hudson valley. We are delighted to see that the spirit endures into the 21st 

century.” 

“All us at TUTHILLTOWN are extremely happy to be working with a family company 

that shares our philosophy.” said Ralph Erenzo, distiller and partner at Tuthilltown 

Spirits. “This new relationship will enable us to maintain the high quality of our products 

and allow us to continue to meet the increasing level of demand, without sacrificing any 

of the principles that make us what we are. We’re delighted to be taking place among 

such distinguished spirits as Hendrick’s Gin, The Balvenie and Glenfiddich.” 

Partners Brian Lee and Ralph Erenzo began work on the distillery which is located at the 

site of the TUTHILLTOWN GRISTMILL, a National Historic Site in 2003 and placed 

their first products on Hudson Valley bars and in retail outlets in Spring 2006. The 

distillery’s products are distributed currently in seventeen States, seven EU countries and 

Australia. TUTHILLTOWN SPIRITS DISTILLERY was named ARTISAN 

DISTILLERY OF THE YEAR 2010 by the American Distilling Institute at its annual 

conference in Kentucky in May; taking also Silver medals for its HUDSON 

MANHATTAN RYE and HUDSON FOUR GRAIN BOURBON, and Gold medal for 

the design of the MANHATTAN RYE package. The distillery makes use of locally 

grown grains and apples to produce whiskeys and vodka. 

TUTHILLTOWN was instrumental in the passage of the FARM DISTILLERY ACT by 

the NY Legislature, permitting farm based distilleries equal opportunity with wineries 

and breweries to allow tours, tastings and direct sale of products at the distillery, a first 

for NY State distillers. The distillery is open for tours on weekends. For more 

information visit 

www.tuthilltown.com

Contact:

 

Ralph Erenzo, Tuthilltown 

845.255.1527 

Category: Microdistilleries,Scotch whisky Tags: , 74 Comments



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