WHISKEY | AMERICAN MADE
base that no one expects the category to stop growing anytime soon ,” says Michael Price , category marketing director , Whiskies , Campari America . The company ’ s portfolio includes Wild Turkey , Russell ’ s Reserve and the new Whiskey Barons project ( Old Ripy and Bond & Lillard ).
CATCHING UP TO DEMAND Whiskey makers need patience to nurture stocks that rest in barrels for years and even decades . Long-term planning is needed to anticipate future demand . And some producers were caught short by consumers ’ thirst for fine whiskey .
“ Demand for the whiskey made at Buffalo Trace Distillery continues to exceed our supply ,” says Kris Comstock , senior marketing director — premium whiskey , which includes brands such as Eagle Rare , W . L . Weller and Blanton ’ s Single Barrel . The company is spending more than $ 200 million to build new barrel warehouses , as well as relocate its bottling operation to make room for distillery expansion with new cookers and fermenters .
“ The industry is still playing a little bit of catch up with supply , says Susan Wahl , group product director for Heaven Hill Distillery , whose portfolio includes a variety of whiskey brands such as Elijah Craig , Evan Williams , Old Fitzgerald , Henry McKenna and Larceny . “ With many of our products , we are talking about planning six , eight , 10 years out ,” she notes . “ It ’ s crystal balling , hoping that assumptions made today still hold true in the future .”
“ There are definitely inventory issues ; a number of brands are on allocation ,” Henderson says . “ Almost everyone in the industry is producing at 100 % capacity and hedging bets for the future .” Angel ’ s Envy opened a visitor ’ s center and new distillery last fall . That has provided an opportunity to increase capacity and meet future demand . But , Henderson adds , “ the industry is growing so fast , we already have more expansion plans .”
The company expanded production from 900 barrels per day to 1,300 barrels and is adding barrel warehouse space , intended to meet supply needs over the next five-to-10 years .
Gruppo Campari has invested nearly $ 100 million in its distillery since the whiskey brands were purchased to accommodate the demand both domestically and on a global scale , according to Price .
To plan for the future , Western Spirits has partnered with The Bardstown Bourbon Company to supply custom bourbon . For its part , when Bardstown launched its collaborative distilling program in 2015 , the 1.5 million proof gallon capacity sold out . This year , Bardstown doubled capacity to 3 million proof gallons , and is exploring further expansion .
“ Demand for American whiskey continues to grow ,” says Sophie Kelly , Diageo senior vice president of North American Whiskeys Portfolio . Diageo is currently the largest North American Whiskey company by value , with a portfolio that includes Bulleit , George Dickel , Seagram ’ s 7 , The Hilhaven Lodge , Orphan Barrel , I . W . Harper and Blade and Bow . This year Diageo opened Bulleit Distilling Co ., with a capacity of 1.8 million proof gallons annually , but it was built as a modular distillery and future expansion opportunities are being explored .
34 StateWays | www . stateways . com | September / October 2017