Mark Gillespie - BourbonSphere

Caitlin Bartlemay: Craft Distilling’s Future

Caitlin Bartlemay of Oregon’s Hood River Distillers is one of the up-and-coming craft distillers on the American whiskey scene. She makes the whiskey widely regarded… Read More

Caitlin Bartlemay of Oregon’s Hood River Distillers is one of the up-and-coming craft distillers on the American whiskey scene. She makes the whiskey widely regarded as America’s first single malt whiskey, McCarthy’s, and joins us this week on WhiskyCast In-Depth. In the news, Edrington offloads The Famous Grouse, Campari takes a minority stake in three Scottish distilleries, and a new report highlights the problems craft distillers face in the current economic climate.

Episode 1075: September 22, 2024

Image courtesy Hood River Distillers.

Edrington Sells The Famous Grouse

Edrington’s leading blended Scotch whisky brand, The Famous Grouse, is being sold to William Grant & Sons for an undisclosed amount. The deal, which still… Read More

Edrington’s leading blended Scotch whisky brand, The Famous Grouse, is being sold to William Grant & Sons for an undisclosed amount. The deal, which still requires regulatory approval, would bring one of Scotland’s best-selling whisky brands under the same umbrella as Glenfiddich, The Balvenie, and Grant’s.

In a statement, Edrington executives said the sale was driven by the company’s goal to focus on its premium brands, including The Macallan, The Glenrothes, and Highland Park single malt Scotch whiskies. Edrington CEO Scott McCroskie said “this decision is driven by our strategy to focus on our core strengths and the growth opportunities in the ultra-premium spirits category. We consider this the right moment for Edrington to exit the blended Scotch category and focus on our core portfolio of ultra-premium spirit brands.”

A William Grant spokesperson said in a statement, “having been around for over 125 years, The Famous Grouse has a rich history and would be a significant addition to our portfolio. The brand has potential for innovation and international growth in a number of markets and we’re excited about what the future holds.” In addition to its Scotch whisky brands, Grant is in the Irish whiskey market with its Tullamore D.E.W. brand, and also has a presence in gin, rum, and the liqueurs segments of the market.

No timeline has been set for regulatory approval.

Image courtesy Edrington.

Campari Takes Minority Stake in Capevin

Campari Group has acquired a 14.6% stake in the owner of Scotland’s Bunnahabhain, Deanston, and Tobermory distilleries for $92 million. The Italian company bought the… Read More

Campari Group has acquired a 14.6% stake in the owner of Scotland’s Bunnahabhain, Deanston, and Tobermory distilleries for $92 million. The Italian company bought the minority stake in Capevin Holdings from ODC.

The distilleries had been under Distell ownership until Heineken’s 2023 takeover of the South African business, and they were subsequently spun off into Capevin’s CVH Spirits unit. The company also owns the Scottish Leader and Black Bottle blended Scotch whisky brands.

According to The Spirits Business, Campari will get to nominate one Capevin board member to represent its interests. Campari already owns the Glen Grant single malt Scotch whisky brand and distillery, along with Wild Turkey Bourbon, Aperol, Skyy Vodka, and other brands. Earlier this year, Campari acquired the Courvoisier Cognac brand from Beam Suntory (now Suntory Global Spirits) in a billion-dollar deal.

Craft Distillers Suffer Declining Sales in 2023

Craft distillers are not immune to the problems facing the larger spirits industry, as a new report from the American Craft Spirits Association and Park… Read More

Craft distillers are not immune to the problems facing the larger spirits industry, as a new report from the American Craft Spirits Association and Park Street Consulting shows. The annual Craft Spirits Data Project shows craft distillers suffered a 3.6% decrease in sales volume and a 1.1% decrease in sales value during 2023. It is the first time since the project started in 2016 that craft distillers have recorded declining sales.

Small-scale distillers also lost market share slightly to 4.6% of the overall spirits market by volume, down from 4.9% in 2022. However, the number of craft distillers continues to grow despite the challenging environment, with an 11.5% increase to 3,069 distilleries as of August 2024.

“We’ve been told again and again that small businesses are the backbone of the U.S. economy,” said Margie Lehrman, CEO of the ACSA. “So if this is true, I’m going to suggest that we’re in severe need right now of either yoga blocks to help us stretch that backbone or alternatively, physical therapy giving us the tools that we need to keep our backbone strong,” she said during a presentation outlining the findings.

Former ACSA President Becky Harris of Catoctin Creek Distilling called for regulatory changes at the state and federal levels to make it easier for craft distillers to self-distribute their products, streamline the bureaucratic paperwork, and allow distillers to ship using the U.S. Postal Service.

One bright spot of the report was export sales, which grew by 5 percent during 2023, with Japan, the United Kingdom, and Canada as the top three export markets. However, those sales are only being made by a small minority of craft distillers, and have not returned to the levels before the European Union imposed import tariffs on American whiskies in 2018.

Sukhinder Singh’s World View

Few people know the whisky industry as well as Sukhinder Singh. He’s a renowned collector of rare whiskies, founded The Whisky Exchange with his brother… Read More

Few people know the whisky industry as well as Sukhinder Singh. He’s a renowned collector of rare whiskies, founded The Whisky Exchange with his brother Rajbir, and is now building a distillery on Islay. We’ll talk with Sukhinder about the coming whisky loch, progress on his new Portintruan distillery, and much more on this week’s WhiskyCast In-Depth. In the news, Scotch whisky exports fell significantly during the first half of 2024. William Grant & Sons plans a major expansion at its Girvan complex in Ayrshire, and Pernod Ricard’s new North American Distillers unit plans to build a hub around its Rabbit Hole distillery in Louisville.

Episode 1074: September 15, 2024

On the Road at The Whisky Show in London

This week, we’re on the road at The Whisky Exchange’s Whisky Show in London. We’ll have highlights from the weekend, including an interview with Dave… Read More

This week, we’re on the road at The Whisky Exchange’s Whisky Show in London. We’ll have highlights from the weekend, including an interview with Dave Broom on his latest book, the third edition of the World Atlas of Whisky.

Episode 1073: September 8, 2024

Crunch Time for Craft Distillers

U.S. craft distillers are facing a crisis, with an average of one distillery shutting down each week over the past year. Inflation and cutbacks in… Read More

U.S. craft distillers are facing a crisis, with an average of one distillery shutting down each week over the past year. Inflation and cutbacks in consumer spending get part of the blame, but there’s also a distribution crisis. Just three companies control the route to market for many craft distillers, and their focus is on high-volume brands as opposed to the low-volume craft distillers. Margie Lehrman of the American Craft Spirits Association is one of the leading advocates for “direct to consumer shipping,” which would allow distilleries to ship their whiskies directly to consumers. The option is only available in 10 U.S. states and the District of Columbia, and wholesalers have vehemently opposed any attempts to expand that number. We’ll talk with Margie Lehrman on this week’s WhiskyCast In-Depth. In the news, economic headwinds cut into sales for both Pernod Ricard and Brown-Forman, while Angel’s Envy co-founder Wes Henderson plans to build a $93 million dollar distillery in Kentucky.

Episode 1072: September 1, 2024

The 30 Days of Bourbon Challenge

September is National Bourbon Heritage Month, and the folks at Bourbon & Banter have a unique challenge every September. They want Bourbon lovers to taste… Read More

September is National Bourbon Heritage Month, and the folks at Bourbon & Banter have a unique challenge every September. They want Bourbon lovers to taste a different Bourbon each day during the month. If that sounds daunting, Bourbon & Banter founder Pops Garrett says it can be fun, too. We’ll talk with Pops Garrett about the Challenge on this week’s WhiskyCast In-Depth. In the news, Sweden’s Mackmyra Distillery has filed for bankruptcy, and we’ll get your views on whether this is a sign of things to come for the whisky industry.

Episode 1071: August 25, 2024

Sweden’s Mackmyra Distillery Files for Bankruptcy

25 years after a group of friends decided to get into the whisky business during an apres-ski hot tub party, Sweden’s Mackmyra Distillery has filed… Read More

25 years after a group of friends decided to get into the whisky business during an apres-ski hot tub party, Sweden’s Mackmyra Distillery has filed for bankruptcy. The petition was filed today in Gävle District Court, with a trustee to be appointed soon.

In a statement on the Mackmyra web site, chairman Petter Ski said the decision to shut down the distillery was not an easy one.

“It is with great sadness that we must state that it is unfortunately not possible to continue the company’s operations. The company management and board have struggled hard to come to terms with the company profitability and cash flow. Despite the fantastic work of both staff and management, it is still not possible to continue. Since I took over as Chairman of the Board just over a year ago, my focus, together with the newly appointed management and the Board, has been to find a long-term solution for Mackmyra, but I am forced to conclude that time has not been enough. I sincerely hope that the bankruptcy trustee now has the chance to do something constructive with the values in the company and secure the Mackmyra brand and its 25-year history.”

Mackmyra was known for its unique maturation warehouse in an underground mining cavern, along with its use of juniper and other native woods to smoke its barley. The company had just announced plans to return to the UK market in a deal with the Summerton Whisky Club.

This news was first reported by The Spirits Business.

Woodinville Whiskey Marks 15 Years

Washington’s Woodinville Whiskey is celebrating its 15th anniversary this year, and hundreds of people lined up this weekend to get first crack at the distillery’s… Read More

Washington’s Woodinville Whiskey is celebrating its 15th anniversary this year, and hundreds of people lined up this weekend to get first crack at the distillery’s latest release, an 8-year-old Bourbon that’s the oldest Woodinville release yet. We’ll talk with co-founder Orlin Sorenson on this week’s WhiskyCast In-Depth. In the news, a proposed alcohol tax increase in Nebraska has been voted down, while the Justice Department is appealing a Texas judge’s ruling that a ban on home distilling is unconstitutional.

Episode 1070: August 18, 2024

Image courtesy Woodinville Whiskey Co.