American whiskey is in a weird place . Writing this feature in 2024 , I ’ m tempted to recycle a similar piece I did on craft beer circa 2017 . It ’ s not uncommon to say that the whiskey industry is five to seven years behind craft beer in terms of trends . Some facts today do echo what the brewers faced when things started turning south for their business .

To list a few : There ’ s too many producers innovating with too many products while consumers have pulled back in spending . These consumers increasingly prefer a handful of favorite bottles rather than experimenting across brands . Industry growth has leveled off at a time when many suppliers have significantly expanded production . Other , trendier categories — tequila , no / low alc , THC drinks — have siphoned off consumer attention and spending .

Does all this spell trouble for American whiskey ? Will the industry fall into a similar trap as what has happened with craft beer ?

Depends . Critically , not all the facts are perfect parallels . While similar headwinds certainly exist , American whiskey is not in the exact same precarious spot as what previously befell craft beer .

“ You have to be careful when comparing our industry with others ,” says David Mandell , co-founder and CEO of Whiskey House , a newly built whiskey manufacturing facility that specializes in sourcing , capable of producing 112,000 barrels per year ( with the potential to expand to more than 224,000 barrels ). “ We have very different circumstances .”

“ You have also got to be careful when proclaiming current negative things permanent ,” he adds . “ The whiskey industry is subject to fluctuations in spending , like anything else . But cocktail culture isn ’ t going anywhere . And there ’ s no question that premiumization is a thing now .”

So how best to describe the current state of the U . S . whiskey industry ?

“ I want to be fair and say its dynamic ,” says Dave Schmier , founder of Redemption Rye and Proof & Wood Spirits . “ There ’ s a lot of undertow right now . You could slice this up a lot of www . beveragedynamics . com Fall 2024 • Beverage Dynamics 25

Beverage Dynamics Fall 2024 | Page 25

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THE WHISKEY INDUSTRY IS SUBJECT TO FLUCTUATIONS IN SPENDING , LIKE ANYTHING ELSE . BUT COCKTAIL CULTURE ISN ’ T GOING ANYWHERE . AND THERE ’ S NO QUESTION THAT PREMIUMIZATION IS A THING NOW .”