Stories - BourbonSphere

Bourbon Has $9 Billion Impact on Kentucky Economy

A new report estimates that the Bourbon industry has a $9 billion economic impact on Kentucky’s economy each year. According to the biennial report commissioned… Read More

A new report estimates that the Bourbon industry has a $9 billion economic impact on Kentucky’s economy each year. According to the biennial report commissioned by the Kentucky Distillers Association, that impact includes more than 23,000 jobs with annual salaries and benefits totaling $2.2 billion.

“Kentucky Bourbon is a $9 billion economic and tourism powerhouse for our Commonwealth, now generating more jobs, more payroll, more tax revenue, more tourists and more distilleries in more Kentucky counties than ever before, KDA President Eric Gregory said at a briefing at the state Capitol in Frankfort.

The state’s 100 licensed distilleries purchased 21 million bushels of grain from Kentucky farmers during 2023, accounting for 70 percent of their grain needs and providing what Agriculture Commissioner Jonathan Shell called a boon for farm families across the Commonwealth. “It’s areas of this state that have a hard time with economic development, but this is an area in which they’re able to help them with their local economies. With the distillers, the farmers, the people who work these fields and the people who distill these spirits, this is something that helps grow Kentucky a tremendous amount,” he said.

The industry accounted for $358 million in state and local taxes during 2023, up 180% from when the KDA’s first economic impact study was conducted in 2009. The industry also accounted for $1.9 billion in federal excise taxes – nearly 25 percent of the federal government’s entire revenue from alcohol excise taxes. In addition, Bourbon distilleries generated 2.5 million visitor experiences during 2023, leading to further economic growth in the hospitality sector.

The study was conducted again this year by University of Louisville professor emeritus of economics Paul Coomes and economic consultant Barry Kornstein. With Coomes retiring, the biennial studies will now be conducted by the University of Kentucky’s James B. Beam Institute.

The report is available to download here.

Artisanal Spirits Company Acquires Single Cask Nation

The Artisanal Spirits Company, owners of the Scotch Malt Whisky Society, have acquired the US-based independent bottler Single Cask Nation from its founders, Joshua Hatton… Read More

The Artisanal Spirits Company, owners of the Scotch Malt Whisky Society, have acquired the US-based independent bottler Single Cask Nation from its founders, Joshua Hatton and Jason Johnstone-Yellin. The founders will remain with the company and lead its business from their base in Connecticut, according to a statement released by ASC today.

“In a way, by joining ASC we’re coming full-circle in our whisky journey,” Johnstone-Yellin said in the statement. “It was actually The Scotch Malt Whisky Society that first inspired us to start an independent bottling business in the first place. We’ve admired them (and their whiskies) for years, so to be a sister brand to them now is really exciting.”

The partners founded Single Cask Nation in 2011 as an offshoot of their Jewish Whisky Company, and now sells its single cask whiskies in eight countries. Artisanal Spirits Company CEO Andrew Dane praised their work in the statement. “Along the way, they have cultivated a passionate global following and stellar reputation as thought leaders in the world of whisky. Single Cask Nation is a perfect fit for ASC and our mission to deliver the world’s most exceptional limited-edition whiskies and experiences. They’re going to be a tremendous asset to our team and we’re excited for everything we can accomplish together in the years ahead,” he said.

Former Westland Distillery executive Steve Hawley has also joined the ASC team to build its presence in the United States, the world’s biggest market for Scotch Whisky by value. Hawley will focus on SCN’s business side, allowing Hatton and Johnstone-Yellin to focus on SCN’s whiskies and the “Nation,” a following of more than 10,000 whisky enthusiasts who purchase SCN whiskies through its web site.

WhiskyCast has requested interviews with Hatton and Johnstone-Yellin. This story will be updated as additional information becomes available.

Links: Single Cask Nation

Kentucky Distillers Report Record Production

For the fifth consecutive year, Kentucky Bourbon distillers filled more than two million barrels of whiskey, with total production reaching 2.7 million barrels in 2022,… Read More

For the fifth consecutive year, Kentucky Bourbon distillers filled more than two million barrels of whiskey, with total production reaching 2.7 million barrels in 2022, a 3 percent increase over 2021. The state also recorded new milestones of 12.6 million barrels of maturing whiskey inventory valued at $6.7 billion, according to data released by the Kentucky Distillers Association.

The data is based on annual reports all distillers file with the Kentucky Department of Revenue detailing their inventories as of January 1. The report also shows the state’s distillers paid a 30 percent increase in barrel taxes to more than $50 million.

The barrel taxes have been a source of controversy for many years. Essentially, it is an inventory tax that funds local schools and government functions. Earlier this year, the General Assembly passed legislation to gradually phase out the tax over 20 years while protecting funding for schools, fire departments, and EMS districts.

Chivas Brothers Workers Ratify New Contract

Members of Unite and GMB Scotland have voted overwhelmingly to accept a revised contract offer from Chivas Brothers, the Scotch Whisky unit of Pernod Ricard.… Read More

Members of Unite and GMB Scotland have voted overwhelmingly to accept a revised contract offer from Chivas Brothers, the Scotch Whisky unit of Pernod Ricard. The two-year contract covers about half of Chivas Brothers’ 1,500 employees around Scotland, and includes a 6.4% pay raise previously rejected by union members in October.

The revised offer makes the pay raise retroactive to July 1, while adding an additional pay hike in the second year of the contract tied to the inflation rate. In addition, workers will each receive a £500 one-time bonus payment.

In a statement announcing the results of the vote, Unite general secretary Sharon Graham said “It was only down to the fact that our 500-strong membership at Chivas Brothers were prepared to fight and take strike action that the company came back to the negotiating table. The pay deal is another example of Unite delivering better jobs, pay and conditions for its members.”

A Chivas Brothers spokesperson said “We are pleased that following the latest ballot, employees covered by bargaining agreements have now voted to accept our revised proposal, which avoids unnecessary strike action. The new deal includes an acceptance of our original pay proposal and enhanced benefits, along with the security of a two-year agreement.”

Chivas Brothers brands include The Glenlivet, Aberlour, Ballantine’s, and Royal Salute.

Strikes Against Chivas Brothers Postponed

The unions representing hundreds of Chivas Brothers distillery, bottling plant, and warehouse workers have called off their planned strikes for next week after the company… Read More

The unions representing hundreds of Chivas Brothers distillery, bottling plant, and warehouse workers have called off their planned strikes for next week after the company made a new pay offer. The move will allow GMB Scotland and Unite to poll their members on the new offer, and essentially ends any threat to holiday orders for Chivas Brothers.

Both unions had planned strikes for next week, with GMB Scotland planning a one-day strike at 21 Chivas Brothers facilities around Scotland and Unite planning three days of rolling strikes at other Chivas Brothers sites.

GMB Scotland spokesman David Hume told The Spirits Business “It is regrettable that it took the threat of a strike to prompt this revised offer but we have now suspended the planned industrial action to allow our members to vote on the terms.” Terms of the new offer were not disclosed, but it is believed to be higher than the 6.4% pay hike rejected overwhelmingly by members of both unions in October.

A Chivas Brothers spokesperson said “While the results of the official ballot are still pending, we are pleased that constructive talks have enabled us to re-engage with the unions on our original proposal, and reach a mutually agreeable position that avoids unnecessary strike action and limits the long-term impact of this dispute on our team. Our offer reflects our ongoing commitment to sharing our success throughout the company, while recognising the normalising business and economic environment for the year ahead.”

Strike Dates Set Targeting Chivas Brothers

The two labor unions representing hundreds of Chivas Brothers distillery and bottling plant workers have given notice of their plans to strike between December 11… Read More

The two labor unions representing hundreds of Chivas Brothers distillery and bottling plant workers have given notice of their plans to strike between December 11 and 14 following a breakdown in contract talks. Unite and GMB Scotland are also banning their members from working overtime and short-notice shifts starting on December 11.

GMB Scotland plans a one-day strike December 12 targeting The Glenlivet distillery, along with Aberlour, Strathisla, and other distilleries and bottling plants. Unite plans a series of rolling strikes targeting various Chivas Brothers facilities during the three-day period, with a goal of disrupting whisky shipments during the holiday season.

Both unions rejected a proposed 6.4% wage hike after the Pernod Ricard division reported a 10-year high in sales during the 2023 fiscal year, with a 17% year-on-year gain. Unite spokesman Andrew Brown said in a statement “Unite has repeatedly warned Chivas Brothers that strike action is inevitable unless the current pay offer was improved. It has not listened to our members and now industrial action is a matter of weeks away. The company should be in no doubt that our members are determined to get their fair share of the hundreds of millions in profit Chivas Brothers is coining in.”

A Chivas Brothers spokesperson said the company remains committed to its pay offer, and hopes for “constructive dialogue” to resolve the labor dispute. The spokesperson said any strike will not affect year-end orders, since most have already been shipped globally.

Billy Leighton Steps Aside at Irish Distillers

After a 47-year career at Irish Distillers, longtime Master Blender Billy Leighton is stepping into a newly-created role of Master Blender Emeritus. He’ll be replaced… Read More

After a 47-year career at Irish Distillers, longtime Master Blender Billy Leighton is stepping into a newly-created role of Master Blender Emeritus. He’ll be replaced as Master Blender by his assistant, Dave McCabe, but will continue to work on special projects for the company.

Leighton started out as a trainee accountant at Bushmills when Irish Distillers owned that distillery before moving into production. He worked across a variety of roles before being named Master Blender at Midleton Distillery in 2004. Over the years, he helped lead the revival of Redbreast Irish Whiskey and played a critical role in developing new whiskies for Jameson, Powers, and other Irish Distillers brands.

In a statement announcing the changes, Leighton said “I have spent most of my working life at Irish Distillers, and I am truly grateful for the opportunities my job and this business has afforded me. While I will be stepping down from the Master Blender role, I will not be stepping away from the business and I look forward to embracing my Master Blender Emeritus role, working with brand teams on special launches. I would like to take this time to wish a much-respected colleague and friend, Dave McCabe, the very best as he takes the Master Blender baton and I look forward to continuing to work with him. Dave and I have worked closely together for years and really enjoy our collaborations. I’ve seen first-hand his passion, expertise and knowledge that will ensure he is a fantastic Master Blender. Our whiskeys are in great hands.“

McCabe joined Irish Distillers in 2010 and held several roles, including tutoring at Midleton’s Irish Whiskey Academy, before being named Blender in 2018.

Image courtesy Irish Distillers.

Chivas Brothers Faces Holiday Strikes

Workers at two unions representing Chivas Brothers workers have voted in favor of going on strike during the holiday season. 91 percent of Unite members… Read More

Workers at two unions representing Chivas Brothers workers have voted in favor of going on strike during the holiday season. 91 percent of Unite members voted in favor of the strike, while 89 percent of GMB Scotland members voted in favor.

The unions represent around 800 workers at Chivas Brothers distilleries and bottling plants around Scotland, and rejected the company’s offer of a 6.4% wage increase in October.

In a statement, Unite general secretary Sharon Graham said “strike action at Chivas Brothers is inevitable unless the current pay offer is improved. Chivas made an eye-watering profit last year, and it can easily afford to offer our members a significantly better offer. Unite will back our Chivas Brothers members all the way in the fight for better jobs, pay and conditions.”

The Pernod Ricard Scotch Whisky unit faces two weeks’ notice of strikes by both unions, which are expected to time their actions around the critical holiday period in December. The unions claim their strikes could disrupt bottling halls and shipments to shops, hotels, and bars during the holidays.

In a comment to just-drinks.com, a Chivas Brothers spokesperson said end-of-year orders have already shipped, meaning strikes would have little impact on the festive season.

1926 Macallan Shatters World Record Auction Price

At least four different bottles of the 1926 Macallan 60-year-old Scotch Whisky have held the world record for the highest price ever paid at auction… Read More

At least four different bottles of the 1926 Macallan 60-year-old Scotch Whisky have held the world record for the highest price ever paid at auction for a whisky. The latest came Saturday at Sotheby’s in London, when a bottle featuring a label by Italian artist Valerio Adami shattered the previous record set by a Fine and Rare-labeled bottle in 2019. The winning bid came in at $2,414,250, beating the 2019 record price of $1.9 million and the pre-auction estimate by nearly three times.

Only 40 bottles of The Macallan 1926 were produced in 1986, with 12 featuring labels by Adami. 12 more had labels created by British artist Sir Peter Blake, and 14 labeled as Fine and Rare. Of the remaining two, one was unlabeled, and one record-setting bottle was hand painted by Irish artist Michael Dillon.

In a statement, Sotheby’s Global Head of Spirits Jonny Fowle said “This record-breaking result for The Macallan 1926 is nothing short of momentous for the whisky industry as a whole. When we first set the record for the Fine & Rare back in 2019 it was a defining moment not just for Sotheby’s, but for me personally. This new record result for The Macallan Adami feels all the more emotional for me, having worked directly with the consignor and distillery to recondition, nose and authenticate this bottle, then finish this journey on the rostrum fielding bids in the room and on the phone. Bringing down the hammer for a new whisky world record is a feeling I’ll never forget.“

The bottle was the first 1926 Macallan to undergo reconditioning with a new capsule, cork, and new glue on the bottle label. Macallan Master Whisky Maker Kirsteen Campbell also authenticated the whisky with a 1ml sample compared with a known 1926 sample from the Edrington archives.

The record-setting price must still be certified as a world record by Guinness World Records.

The auction was part of Sotheby’s “Weekend of Whisky,” which also featured an extensive Japanese whisky collection that brought in a total of $2.2 million.

Links: Sotheby’s

Amber Beverage Plans New €35 Million Walsh Whiskey Distillery

Amber Beverage Group is expanding on its 2021 acquisition of Ireland’s Walsh Whiskey with plans for a new €35 million distillery in County Carlow along… Read More

Amber Beverage Group is expanding on its 2021 acquisition of Ireland’s Walsh Whiskey with plans for a new €35 million distillery in County Carlow along the River Barrow. Assuming the project receives planning approval, construction could begin next year on the project with the distillery slated to open in 2026.

“We need to lay down whiskey stocks for the next 10, 20 years and so on,” Walsh Whiskey founder Bernard Walsh told WhiskyCast in a telephone interview. “They (Amber Beverage) get whiskey. They understand that this is a long-term business, and they are taking that stance along with ourselves here at Walsh Whiskey,” he said.

Listen to our exclusive interview with Bernard Walsh:

Plans are to build the distillery at a historic maltings site in Dunleckney that Walsh called “one of the finest examples of industrial heritage in Ireland’s south-east region.” The riverside site was home to a corn mill in the 18th century and a water-powered brewery in the early 19th century before being converted to a maltings.

The distillery would be the second for Walsh Whiskey, which originally built a distillery at Royal Oak as part of a joint venture with Illva Saronno Holding of Italy. The partnership later fell apart, with Saronno holding on to the distillery and Walsh retaining the Writers’ Tears and The Irishman whiskey brands produced using sourced whiskey from Irish Distillers and other distillers around Ireland.

“This doesn’t take away from our long-term partnerships that we get already, and that will continue,” Walsh said. “For new expressions and all of the wonderful things that we want to do, we just need to have that independence.”

Image courtesy Amber Beverage Group.