8 American Whiskey Trends invested many millions in operations in recent years . Both Buffalo Trace and Woodford Reserve are currently amidst expansions that will double production .
Beyond its new visitor center , Heaven Hill also invested $ 106 million in production , including new barrel warehousing , a bottling line and equipment upgrades . The craft side of the industry also sees sunnyskies ahead . “ I don ’ t see any signs of things slowing down ,” says Hletko , former president of the Board of Directors for the American Craft Spirits Association . “ I think we ’ re going to continue to grow for a while . We ’ re still below the high-water mark for whiskey volume in America . That mark was set 50 years ago , and with 50 years of population growth , I think whiskey volume can continue to go up .”
“ What concerns me is the distillery that has not mastered their base product and then use barrel finishing to mask imperfections .”
– David DeFazio , Cofounder of Wyoming Whiskey
pricier bottles .
“ Customers are telling us that that ’ s what they want ,” says Nicole Austin , general manager and distiller at Cascade Hollow Distilling Co ., maker of George Dickel Tennessee Whisky . “ People have a taste for affordable luxuries to treat themselves . And something like a nice spirit fits right in that . So I think that part in particular , premiumization , is going to continue to grow .”
This “ treat yourself ” mentality has only grown during the challenging years of the pandemic . Affordable luxuries have helped us endure this difficult time .
Premium innovations have also driven growth in the industry . “ As a former liquor retailer , we learned firsthand that new products are the lifeblood of retail ,” says Jay Erisman cofounder and distiller at New Riff Distilling . “ But there ’ s a difference between truly innovating and just pushing SKUs on retailers . That ’ s not innovation .”
5 ) Producer Investments Pay Off
Industry watchers remain bullish on American whiskey , and that ’ s reflected in the investments suppliers have made to ramp up production .
“ I think we ’ re still in the meat of it ,” says DeFazio . “ It certainly seems like whiskey — bourbon in particular — has hit the mainstream . Educated consumers and tastemakers led the initial charge . We ’ re past that stage now . Those initial people have folded in their friends , who have picked it up and liked it and it ’ s spreading .”
“ It also seems to that investment from major suppliers has not slowed down ,” he adds . “ We ’ ve upped our own production , based on our bullish view of the future .”
To his point , leading distilleries around the country have
6 ) Pain In the Glass Shortage
Covid-19 has roiled production and shipping industries worldwide , including American whiskey . Distribution remains disrupted . Perhaps even more threatening to producers is the lingering glass shortage . Obtaining bottles for product is no simple task .
“ The glass shortage is definitely a challenge ,” says Paul Hletko , founder and distiller at craft pioneer Few Spirits in Evanston , IL . “ It ’ s one of the things we ’ re going to get over . The marketplace will equalize with time , but there will be short-term pain .”
“ Nobody wants to buy extra glass , but you have to now , and that delays everybody else ,” he adds . “ It ’ s a
Jay Erisman non-virtuous cycle . It ’ s real , and it ’ s going to affect product availability and pricing .”
Compounding matters , the costs of buying and shipping glass have risen significantly during the pandemic .
“ Suppliers can ’ t eat all those costs ,” Hletko says . “ That stuff does have to get passed on .” Nobody foresees an imminent fix . “ People keep saying that the supply-chain issues could be felt for years , and I do think so , myself ,” says Paladini of Penelope . “ I think we ’ re still in the first inning of wild and crazy times .”
To his point , paper labels , cork and other closures all remain in short supply during this time of disruption .
7 ) Social Media Shapes Whiskey Culture
Influencers on social media already held large sway over
consumer sentiment . Now , another growing area of the online ecosystem has gripped whiskey culture .
The size and number of whiskey groups on social media has spiked during the pandemic . People stuck at home and passing time on their phones and computers joined these
36 • Fall 2022 www . cheersonline . com