DISCUS - BourbonSphere

Mark Reynier: Whisky’s Enfant Terrible

Waterford Distillery founder Mark Reynier has no shortage of opinions about how he feels whisky should be made, and he’s putting those opinions into the… Read More

Waterford Distillery founder Mark Reynier has no shortage of opinions about how he feels whisky should be made, and he’s putting those opinions into the bottle. Reynier has butted heads with the whisky establishment many times over the years because of his passion for flavor above all else, critics be damned. He’ll share some of his opinions with us on this week’s WhiskyCast In-Depth. In the news, Compass Box founder John Glaser is stepping down after 23 years, while there’s both good and bad news about whisky exports.

Episode 1046: March 3, 2024

U.S. Whiskey Exports Set Record in 2023

While most drinks industry reports have been full of bad news in recent weeks, a new report released by the Distilled Spirits Council of the… Read More

While most drinks industry reports have been full of bad news in recent weeks, a new report released by the Distilled Spirits Council of the United States shows U.S. spirits exports have recovered from three years of European Union tariffs. Exports totaled $2.2 billion in 2023, up 8% over 2022, while American whiskey exports increased by 9% to a record $1.4 billion. Whiskies account for 63% of all U.S. spirits exports by value and 34% by volume.

In a news release, DISCUS Vice President of International Trade Rob Maron said “The tariffs imposed from 2018-2021 as part of two separate disputes between the U.S., EU and UK have since been suspended or removed, presenting U.S. spirits producers with an opportunity to recapture lost market share in some of the U.S.’s largest export markets. Over the span of two years, American Whiskey exports to the EU surged by more than 60%, climbing from $439 million in 2021 to $705 million in 2023.”

The 27-member bloc represents the largest export market for American whiskey, followed by Australia ($121 million), Japan ($106 million), the United Kingdom ($86 million), and Canada ($76 million). Tariffs remain suspended until March 31, 2025 while Washington and Brussels negotiate a trade deal on steel and aluminum exports, along with a separate dispute over aircraft subsidies.

The emphasis on whiskey exports can also be found on a state-by-state basis. Tennessee was the number one state for spirits exports ($983 million), largely on the basis of global demand for Jack Daniel’s Tennessee Whiskey. Bourbon exports pushed Kentucky to the number two position at $505 million, while exports of rum and other spirits put Florida in third place at $338 million.

The full report is available here.

U.S. Spirits Sales Flat in 2023

U.S. spirits producers turned in a flat performance in 2023, according to new economic data released today by the Distilled Spirits Council of the United… Read More

U.S. spirits producers turned in a flat performance in 2023, according to new economic data released today by the Distilled Spirits Council of the United States. While distilled spirits maintained their market share accounting for 42% of all beverage alcohol sales, sales only showed a 0.2% gain with a 1.2% gain in volume.

Irish, Single Malt Scotch whiskies, and Canadian whiskies took the largest hits, dropping year-over-year in revenue growth by 19.4%, 8.4%, and 5.9% respectively. This is significant, since the U.S. represents the largest market for Irish and Canadian whiskey sales and one of the largest markets for Single Malt Scotch sales.

“There is a disconnect this year for many categories between shipments and retail sales. If you look at some other Irish whiskey data from NABCA, which shows data for 17 control states, Irish whiskey retail sales are down by only 2.2%, said DISCUS chief economist Hasan Bakir, noting that the year was also a major one for depletions, or sales of existing inventory built up during the pandemic-fueled boom years of 2021 and 2022.

Bourbons and other American whiskies continued their strong performance, turning in a 3.8% increase in revenue to an annual total of $5.3 billion. The sector remains one of the fastest-growing segments of the beverage alcohol market, trailing pre-mixed cocktails and spirits-based ready-to-drink products, tequila, and blended American whiskey. However, overall whisky sales across all categories were down by 2.2% as consumers traded down following several years of gains for higher-priced whiskies.

“What we saw in 2023 with financial and economic factors was a different sort of slowing down as consumers took stock of where they were,” said Marten Lodewijks of IWSR Drinks Analysis. “They were dealing with record credit card debt, they were dealing with high interest rates, inflation, prices being pushed through the system, global uncertainty in terms of wars popping up…so there was just a general negative sentiment in 2023 as consumers were quite clearly both saying and acting to be a little more conscious of where they were. I think now as some of the macro-economic fundamentals are starting to improve, inflation coming down, I would expect a return to the norm with continued strong growth in premiumzation,” he said on a DISCUS conference call with reporters.

One bright note from the presentation: American whiskey exports are up 64% year-over-year for the period from January to October of 2023, the most recent period for which data are available. This follows a 15-month extension of the European Union’s suspension of tariffs on American whiskey exports negotiated in December. The EU member nations account for 44% of all American whiskey exports, and grew by 29% in 2022 to $566 million, surpassing the pre-tariff record of $518 million set in 2017.

A Whiskey Maker’s Holiday Treat

Alex Chasko is an Oregon transplant turned Dublin whiskey maker. He’s the master distiller and whiskey maker for Teeling Whiskey Company, and his latest creation… Read More

Alex Chasko is an Oregon transplant turned Dublin whiskey maker. He’s the master distiller and whiskey maker for Teeling Whiskey Company, and his latest creation is a 33-year-old Irish single malt finished in Pineau des Charentes casks. He’ll join us on this holiday edition of WhiskyCast. In the news, European and U-S trade negotiators extend a deal to avoid a return to tariffs on American whiskey exports, while another Scotch Whisky company is building a distillery in China.

Episode 1036: December 24, 2023

Making Whiskey in the Music City

Nelson’s Green Brier Distillery was once Tennessee’s largest distillery in pre-Prohibition times. The great-great-great grandsons of Charles Nelson revived the family business in downtown Nashville, and have been making Tennessee whiskey along with sourced Bourbons and now, a Rye Whiskey. The distillery underwent a major expansion recently, and we’ll talk with co-founder Andy Nelson on this week’s WhiskyCast In-Depth. In the news, time is running short to avoid a return to Europe’s import tariffs on American whiskies, while a new Wild Turkey Bourbon features something different…three generations of Russells on the label.

Episode 1028: October 29, 2023

American Spirits Exports Reach Record High

March 12, 2023 – American distillers exported a record $2.06 billion in spirits during 2022, a 30 percent gain over 2021 as the temporary end of tariffs on Bourbons and other American whiskies helped exports rebound. According to a new report from the Distilled Spirits Council, American whisky exports grew 32 percent with a value of $1.28 billion during the year. “Growth to the European Union and United Kingdom lagged behind other markets,” DISCUS Vice President of International Trade Rob Maron told WhiskyCast in a telephone interview. Both trade partners ended their punitive tariffs on American whisky exports in 2022, Read More »

March 12, 2023 – American distillers exported a record $2.06 billion in spirits during 2022, a 30 percent gain over 2021 as the temporary end of tariffs on Bourbons and other American whiskies helped exports rebound. According to a new report from the Distilled Spirits Council, American whisky exports grew 32 percent with a value of $1.28 billion during the year.

“Growth to the European Union and United Kingdom lagged behind other markets,” DISCUS Vice President of International Trade Rob Maron told WhiskyCast in a telephone interview. Both trade partners ended their punitive tariffs on American whisky exports in 2022, though Maron noted the tariffs could return if no agreement on sustainable steel and aluminum trading is reached with the Biden Administration by this October.

“We urge the Biden administration to secure the permanent removal of these tariffs. If an agreement on steel and aluminum is not reached with the EU before the end of 2023, the EU will reimpose its retaliatory tariff at 50% on American Whiskeys. That will bring this renewed interest in American Whiskey among EU consumers to a screeching halt,” Maron said.

While the end of tariffs helped push export sales, the report also found shifting consumer preferences toward premium and luxury spirits, along with the gradual reopening of the hospitality sector following pandemic-related closures.

The 27-member European Union remains the single largest export market for U.S. spirits at $703 million, more than double Canada’s second-place ranking at $268 million. The United Kingdom ($159 million), Australia ($141 million) and Japan ($113 million) round out the top five export markets by value.

Links: Distilled Spirits Council