Each week, we bring you the latest whisky news on WhiskyCast, but a lot can happen during the week. Now, you can keep up with whisky news as it happens here on WhiskyCast.com!

UK Scotch Sales Down Again In 2014

Whisky bottles being filled on the bottling line at Bruichladdich Distillery in September, 2011. Photo ©2011 by Mark Gillespie.March 13, 2015 – With Chancellor of the Exchequer George Osborne’s UK budget announcement less than a week away, Scotch Whisky Association leaders are turning up the pressure on calls for a cut in taxes and duties on whisky and other spirits. The SWA released data from HM Revenue & Customs today showing a 4.78% decline in domestic Scotch Whisky sales during 2014, based on a drop in the number of 70cl bottles sold to 83.3 million during the year. In 2013, the equivalent number was 87.5 million, and the drop has been steady since 2009 when 92 million bottles of Scotch were sold in the UK.

According to the SWA, 78% of the retail price of an average bottle of Scotch sold in the UK goes directly to the government in taxes and duties. In the 2014 budget, Osborne froze taxes on whisky and other spirits while also scrapping the so-called “duty escalator” that automatically raised duties 2% above the annual rate of inflation each year. In a news release, SWA Chief Executive David Frost called for a 2% cut in spirits taxes in this year’s budget, which is scheduled to be released on Wednesday (March 18).

“Scotch Whisky is a massive export success for the UK so it’s obviously disappointing to see this decline in volumes in our domestic market. In next week’s Budget the Chancellor has the perfect opportunity to support an important UK industry. He should cut spirits duty by 2%. This move would also benefit consumers and public finances. In last year’s Budget, the Chancellor highlighted Scotch Whisky as a ‘huge British success story’. We hope this year too he will show his support for this world-class manufacturing industry.”

Frost noted that the UK has only cut spirits duties three times in the last 100 years, and UK residents pay the largest share of spirits duties within the European Union. According to the association, UK residents pay 25% percent of all spirits duties collected within the EU, compared to 15% by the French, 14% by the Germans, and 5% by Spanish residents.

Last month, a senior Treasury official told Parliament that the coalition government recognizes the economic value of the Scotch Whisky industry and its impact on rural areas, while not committing to a cut in duties.

Links: Scotch Whisky Association

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Jameson Adds “Bottle Your Own” Feature in Dublin & Midleton

A Jameson cask on display at the Old Jameson Distillery in Dublin. Photo ©2011 by Mark Gillespie.March 12, 2015 – Irish Distillers is adding a new “bottle your own” feature at its visitors centers in Dublin and Midleton, just in time for St. Patrick’s Day. Visitors to the Old Jameson Distillery in Dublin and the Jameson Experience at the Old Midleton Distillery will be able to fill their own bottle of an exclusive Jameson Irish Whiskey straight from the barrel.

Jameson Select Reserve Cask Strength Black Barrel is a new expression produced just for the two visitors centers, and is based on the Select Reserve Black Barrel introduced several years ago. The whiskey is blended from single pot still whiskey and a small batch grain whiskey distilled at Midleton Distillery in County Cork, and is only produced once a year. While the retail version is bottled at 40% ABV, the “bottle your own” version’s strength will depend upon the individual cask being emptied. Visitors will fill out individual labels for their bottles with the ABV, cask number, date, and their name – along with entering the data in the center’s ledger. The price for the unique 70l bottles is €100 ($106 USD).

Links: Jameson

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Green Label Mystery Resolved

Johnnie Walker Green Label Blended Malt Scotch Whisky. Image courtesy Johnnie Walker/Diageo.March 12, 2015 – The mysterious reappearance of Johnnie Walker Green Label at North American retailers in recent weeks has been solved. Sharp-eyed whisky lovers in the US and Canada noticed new stocks of Green Label appearing at retailers starting in mid-February, but no one at Diageo was able (or willing) to explain at the time whether the bottles were new or previously unsold stocks that had been sitting in a warehouse.

Diageo has started responding to inquiries through the official Johnnie Walker US Twitter account, and posted this notice in response to our tweets trying to answer questions from listeners.

A tweet from the official Johnnie Walker US Twitter account on March 12, 2015. Image courtesy Twitter.

A Diageo North America spokesman says Green Label is not returning permanently to the Johnnie Walker range, but is also not a limited-edition release. It will be available through 2015, with a decision to be made on future availability later this year based on sales. While Diageo executives had said in 2012 that Green Label production was to be discontinued, it apparently has still been produced for sale in Taiwan and a small number of other markets. The decision to bring it back in North America was based on an allocation of Green Label becoming available, along with consumer and trade demand as well as the brand’s 10th anniversary.

The 15-year-old blended malt has been the only one of its kind in Diageo’s Scotch Whisky portfolio since its introduction in 2005. Speculation over the reappearance was rampant on social media in recent weeks, with some retailers telling us they had been advised that the new stocks had been “found”, while others questioned whether the new stocks had been previously for sale elsewhere and relabeled for sale in North America. That option was highly unlikely since Green Label bottled for sale outside of North America was packaged in 700ml bottles, while the US market requires 750ml bottles and Canada allows either size.

Editor’s note: This story was updated on March 21 with additional information. 

Links: Johnnie Walker

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DISCUS Chief Cressy To Leave At Year’s End

DISCUS Chief Executive Officer Adm. Peter Cressy at the association's annual economic briefing in New York City, February 6, 2013. Photo ©2013 by Mark Gillespie. March 4, 2015 – Adm. Peter Cressy has announced his plans to step aside as CEO of the Distilled Spirits Council of the United States at the end of the year, following nearly 16 years at the trade group’s helm. The 73-year-old retired US Navy Rear Admiral plans to return to the University of Massachusetts at Dartmouth, where he previously served as Chancellor and remains a tenured professor in the University’s business school.

In a news release, Cressy was quoted as telling DISCUS directors last week that the time has come for a transition to new leadership, given that the association’s new strategic plan has been completed. The association will begin a nationwide search for a new CEO, and plans to hire an executive search firm to help with the process. Möet Hennessy USA CEO and DISCUS Vice Chairman Jim Clerkin will head the search committee. “We are particularly pleased that Dr. Cressy has promised to stay on as long as necessary to ensure a smooth transition to a new CEO,” Clerkin said in the news release. “In the meantime, we are confident that Dr. Cressy’s strong leadership and our outstanding staff will ensure another strong year for the DISCUS team and the spirits industry.” 

Under Cressy’s leadership, the association was successful in modernizing liquor laws and regulations at the federal, state, and local level. He was also instrumental in expanding the industry’s international reach with the creation of an export promotion program, and spearheaded the project to restore the historic distillery at George Washington’s Mount Vernon estate in Virginia.

Links: Distilled Spirits Council of the United States

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Ruling Expected Soon on Motion to Dismiss Maker’s Mark Lawsuit

A Maker's Mark Distillery worker hand-dips a bottle in the brand's traditional red wax. File photo ©2008 by Mark Gillespie. March 2, 2015 – A hearing originally scheduled for today in the proposed class-action lawsuit against Maker’s Mark has been cancelled. U.S. District Court Judge John Houston issued an order canceling the hearing on a motion by attorneys for Maker’s Mark to dismiss the lawsuit accusing the Bourbon brand of misleading California consumers with claims that it is “hand-made” at the Maker’s Mark Distillery in Loretto, Kentucky. Judge Houston’s order states that the court has enough information from both sides to issue his ruling on the order without oral arguments, with a ruling expected “in due course.”

The lawsuit was filed in December by lawyers representing plaintiffs Safora Nowruzi and Travis Williams, with a request to expand the plaintiff class to include all California residents who purchased Maker’s Mark within the past four years. The suit claims that Maker’s Mark labeling violates California’s false advertising and consumer protection laws by billing the Bourbon as “hand-made,” when it comes from a distillery using extensive amounts of machinery. The lawsuit seeks at least $5 million in damages, along with punitive damages and attorneys’ fees.

In its motion to dismiss the lawsuit filed January 16, attorneys for Maker’s Mark and brand owner Beam Suntory argued that the complaint falls within California’s “safe harbor” doctrine protecting businesses from claims, since all of the brand’s labels with the “hand-made” language have been reviewed and approved by the US Treasury Department’s Tax & Trade Bureau. In addition, the motion argued that a reasonable consumer would not be misled by the labeling.

“The reasonable consumer analysis starts, of course, with common sense. And common sense dictates that “handmade” bourbon does not mean, as Plaintiffs would have it, that every step of the process—from grinding the grain to affixing the label on the bottle—was done by hand and without the use of any machinery. Moreover, as evident from Plaintiffs’ own allegations and information referenced in their Complaint, the Maker’s Mark label could not have misled a reasonable consumer to believe that the entire process for making the bourbon was done by hand, because Maker’s Mark publicly discloses its process for making bourbon. Indeed, as Plaintiffs allege in their Complaint, Maker’s Mark’s public website contains detailed information about the production process. What’s more, the Maker’s Mark label expressly invites consumers to visit its website and contains the website address. Given these facts, a reasonable consumer could not plausibly believe that the bourbon is literally made entirely by hand and without the use of any machinery.”

In their response, attorneys Abbas Kazerouni, Mona Amini, and Joshua Swigart argued that the “safe harbor” defense does not apply in this case, since it is intended to cover laws and regulations, not agency actions such as a TTB label approval process.

“It would contravene public policy and reason in general to immunize an alcohol manufacturer from consumer fraud suits because the labels of its products had been approved by the TTB. Unlike, for example, the FDA’s “rigorous” pre-approval process for drugs, the TTB’s approval of alcohol labels hinges on self-reporting. 2 Thus, the TTB’s approval of Defendant’s label demonstrates nothing more than that Defendant repeatedly affirmed to the TTB that its product is truly handmade. It does not suggest that if the TTB had known the true process by which Maker’s Mark was actually made, it would have concluded that Defendant’s label complied with federal law.”

The two firms have also filed a similar lawsuit against Beam Suntory’s Jim Beam brand based on similar claims. Beam Suntory spokesmen have declined to comment on either case, citing a company policy against commenting on pending litigation.

Editor’s note: We have provided links in this story to the actual court filings in the lawsuit. Note that in civil cases, the arguments made by either side are not considered to be proven as fact until argued in open court. 

Links: Maker’s Mark | Kazerouni Law Group

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Beam Suntory’s Bauder: Bourbon Boom Just Beginning

Chris Bauder, General Manager of Whiskies & Cognacs for Beam Suntory, during the Whiskies & Spirits Conference February 24, 2015 in New York City. Photo ©2015 by Mark Gillespie.March 1, 2015 – For Bourbon lovers, it seems like the “Bourbon Boom” has been going on forever. Not true, according to Chris Bauder, general manager of Whiskies and Cognacs for Beam Suntory. During his keynote address at last Tuesday’s Whiskies & Spirits Conference in New York City, Bauder pointed out that US whiskey sales have only risen in three of the last 25 years — the last three. By comparison, vodka sales have risen in 23 of the last 25 years and tequila sales have risen for 23 consecutive years. “When people ask if this is a trend that is going to continue, we think it has a very long runway,” he said, citing recent sales figures showing growth among all sectors of the whisky industry.

Bauder points to several key factors for the “Bourbon Boom.” Whisky’s recent return to relevance as a cultural touchpoint through references on popular television shows such as “Mad Men” and “Boardwalk Empire” helped draw attention back to brown spirits, leading to the often-cited growth in interest among women. Bauer cited a demographic shift showing that more women now drink spirits in general than men, with a relatively even split between the genders in whisky consumption. He also referred to the emphasis on innovation and new product development, with the recent trend in flavored whiskies and the growth of craft distillers opening up the flavor profile of whisky to new consumers. At the other end, the boom in premium and unique expressions are bringing connoisseurs back to the Bourbon sector.

Listen to Mark Gillespie’s interview with Chris Bauder:

Before joining Beam in 2011, Bauder was a senior marketing executive at consumer goods giant S.C. Johnson & Co., and learned quickly that solving the perceived shortage of whisky isn’t as simple as that for other products. “If you want more Windex, you put more chemicals and water together and you get more Windex,” he said in an interview following his speech. “That was a revelation…wait a minute, how can this allocation be what it is,” referring to small supplies of whiskies from Beam Suntory’s distilleries and the need to balance global demand with short supply.

Bauder said Beam Suntory will invest hundreds of millions of dollars over the next several years to expand whisky production at all of its facilities worldwide, but cautioned consumers to expect more whiskies without age statements. “Everybody…Scotland, Japan, and the US are struggling with this, and one of the things that’s been encouraging is brands like (The) Macallan which first did it have actually been quite successful because the liquid’s good and the way they blend has actually given them a good taste, plus the concept around the naming has been really interesting to consumers.”

“I think talking people away from age statements is helpful…it’s an easy way to think older is better, but brands like Maker’s Mark or Woodford Reserve haven’t traded in age statements and they’re doing just fine.”

In 2014, Beam Suntory removed the 8-year-old age statement from its Jim Beam Black Bourbon and introduced the no-age-statement Laphroaig Select, and Bauder said that practice will be extended to Beam Suntory’s Hibiki range this year. “You’re going to see your first one coming in July of this year in the US, and they’re going to be launching in April in Japan.” Bauder also confirmed that Beam Suntory plans to expand its Japanese whisky portfolio across the US. In the past, Suntory and its US importers focused on a handful of major cities, but part of the reason for Suntory’s $16 billion acquisition of Beam in 2014 was to expand the footprint for its Japanese whiskies as well as acquire new brands for global distribution.

Editor’s note: This story has been updated to remove Chris Bauder’s reference to a Yamazaki Sherry Cask bottling being planned for a US release in 2015. According to a company spokesman, Bauder misspoke, and there are no plans to release one this year. 

Links: Beam Suntory

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WhistlePig Experimenting With Wine Finishes

February 28, 2015 – Whistlepig Rye will be releasing the first in its “Old World Series” of three wine cask-finished expressions in the coming days leading up to a new permanent expression this summer. The first release will be a 12-year-old Sauternes cask finish, with a 12-year-old Madeira finish and a 12-year-old Port finish to follow.

“By June, we’re going to release the first real line extension, and that line extension will be a married finish that combines the best of the Sauternes, Port, and Madeira,” said Master Distiller Dave Pickerell during an interview at Whisky Live New York Wednesday night. “I can’t tell you the percentages, because the percentages will be at least in part determined by the feedback from consumers and bartenders that taste the products.” While the final version will be widely available, the three individual finishes will only be available in New York, Chicago, San Francisco, and other major US markets.

Listen to Mark Gillespie’s entire interview with Dave Pickerell:

Pricing for the three individual finishes was not immediately available.

Pickerell said construction work continues on the WhistlePig Farm Distillery in Vermont following final environmental approvals from the state. The stills are scheduled to be installed in June, and Pickerell hopes to begin distilling around July 4th. “I intend to celebrate with a marching band and fireworks,” he said.

WhistlePig is also updating its labels to reflect the whisky’s current Canadian origin at the request of the US Treasury Department’s Tax & Trade Bureau. Ironically, the TTB had earlier insisted that the Canadian origin be removed from WhistlePig labels once Pickerell’s team started doing secondary maturation at the farm in Vermont. “The government came back and said wait a minute, it’s not a product of Canada any more because the Canadian juice is now an ingredient, so take ‘Product of Canada’ off the label,” Pickerell said. “With all the fluff that’s been going on recently, the government came back and said, yeah, can you put Canada back on the label again…so it makes us look stupid.”

Pickerell is also working with Hillrock Estate Distillery in New York on a peated single malt that will be released later this year, and is also working with the J. Reiger & Co. Distillery in Kansas City. In addition, he will be making whiskey at George Washington’s Distillery at Mount Vernon in Virginia later this month.

Links: Whistlepig Rye | Hillrock Estate | J. Rieger & Co.

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Highlander Inn Sale Delayed

Highlander Inn owner Duncan Elphick in November, 2014. Photo ©2014 by Mark Gillespie.February 26, 2015 – Duncan Elphick’s retirement plans are on hold for at least a month. The owner of the Highlander Inn and its renowned whisky bar had planned to close on a sale to longtime colleague Tatsuya Minagawa this weekend. However, paperwork snags have delayed the closing until at least the end of March.

“I’m wanting to get out and enjoy some time for myself, and Tatsuya’s wanting to buy it,” Elphick told WhiskyCast’s Mark Gillespie in a telephone interview today. “We’re going through the process at the moment…it’s been a bit delayed because of lawyers, but we’re now looking at the 30th of March as being the handover date.” Elphick said health issues a couple of years ago prompted him to start looking for a buyer to continue the tradition he started when he left the Craigellachie Inn across the street in 2005 to buy the hotel. “I want some time for me before the Grim Reaper decides that he wants to call me.”

Tatsuya Minagawa of the Highlander Inn in a 2010 file photo. ©2010 Mark Gillespie.Minagawa was Elphick’s bar manager and right-hand man from 2005 until three years ago, when he left to work as a European brand ambassador for Suntory. He continued to live in Craigellachie, though, and expressed an interest in taking over the inn as soon as he heard Elphick was thinking of selling. “He’s the ideal purchaser for the property, because he knows the business, he knows these whiskies, he knows what we’ve been doing before, and he wants to take it and build it further,” Elphick said.

Elphick hasn’t decided on what he will do after his retirement, noting that “I’m not one of these people that likes to count eggs until they’re hatched.”

Links: Highlander Inn

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Fire Strikes Diageo Malting Facility

February 25, 2015 – Production is scheduled to resume later today at Diageo’s Burghead Maltings in Moray, Scotland, following a fire inside one of the facility’s kilns Tuesday night. Firefighters from as far away as Inverness spent about 12 hours fighting the fire at the facility, which supplies malted barley for Diageo’s malt whisky distilleries in the Speyside region.

A Diageo spokesman told WhiskyCast via email that the fire was confined to one of the facility’s seven kilns, which are used to dry wet barley at the conclusion of the malting process. The damage is reported as minor, and there were no injuries reported.

There is no word on what caused the fire.

Editor’s note: This story was updated with additional information. 

Links: Diageo | BBC Scotland

 

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Pappy Van Winkle 20 Takes Best Bourbon Honors in World Whiskies Awards

February 24, 2015 – Pappy Van Winkle Family Reserve 20-year-old was named Best Bourbon in the 2015 World Whiskies Awards presented by Whisky Magazine, while Forty Creek Confederation Oak took top Canadian Whisky honors. North American winners in the annual competition were announced today during the Whiskies & Spirits Conference in New York City.

The Pappy Van Winkle 20 won the Best Bourbon with an Age Statement category, and was then judged blindly last week by a panel in London against Elijah Craig Barrel Proof, which won the category for Bourbons without an age statement. The judges selected the Pappy for overall Best Bourbon honors.

In other categories, Balcones Texas Single Malt won Best American Single Malt honors, Thomas H. Handy Sazerac Rye was named Best US Rye Whiskey, and Parker’s Heritage Collection 2014 Original Batch won for Best US Wheat Whiskey. Mellow Corn was named the Best Non-Bourbon US Whiskey, and Sons of Liberty Seasonals Hop Flavored Whiskey took top honors in the flavored whiskey category.

The overall winner of Best American Whiskey honors will not be announced until March 19, when the remainder of the World Whiskies Awards winners will be announced at the Whiskies & Spirits Conference in London.

Here is a rundown of medalists in the various categories as announced during the ceremony:

Best Flavored Whiskey
Winner: Sons of Liberty Seasonals Hop Flavored Whiskey
Gold: Knob Creek Smoked Maple
Silver: J.P. Wiser’s Spiced Vanilla

Best American Single Malt
Winner: Balcones Texas Single Malt
Gold: Balcones Fr. Oak Single Malt
Silver: Sons of Liberty Battle Creek Single Malt

Best American Wheat Whiskey
Winner: Parker’s Heritage Collection 2014 Original Batch Wheat Whiskey
Gold: Bernheim Original Wheat Whiskey
Silver: Bainbridge Battle Point Wheat Whiskey

Best American Rye Whiskey – No Age Statement
Winner: Thomas H. Handy Sazerac Straight Rye
Gold: Col. E.H. Taylor Jr. Straight Rye
Silver: Sonoma Rye
Bronze: Rittenhouse Bottled in Bond

Best Rye Whiskey – Age Statement
Winner: Redemption Rye Barrel Proof 7YO
Medal winners not announced

Best American Non-Bourbon
Winner: Mellow Corn
Gold: Balcones Brimstone
Silver: Rogue Dead Guy
Bronze: Balcones Baby Blue

Best Bourbon – No Age Statement
Winner: Elijah Craig Barrel Proof
Gold: Buffalo Trace
Silver: Col. E.H. Taylor Single Barrel and Four Roses Single Barrel
Bronze: William Larue Weller Bourbon

Best Bourbon – Age Statement
Winner: Pappy Van Winkle Family Reserve 20 Years Old
Gold: Four Roses 2014 Limited Edition Small Batch
Silver: Four Roses 2014 Limited Edition Single Barrel
Bronze: W.L. Weller 12

Editor’s Note: This story was updated to include the medal winners announced during the awards ceremony.

Links: World Whiskies Awards | Whiskies & Spirits Conference

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