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!

The Famous Grouse Experiments With Flavors in Sweden

The Famous Citrus as test-marketed in Sweden. Photo courtesy Edrington via just-drinks.com.May 31, 2013 – Edrington’s innovation team has experimented with several versions of The Famous Grouse in recent years, with a smokier version known as The Dark Grouse and lighter versions under The Snow Grouse and The Naked Grouse labels in some markets. Now, that team has jumped on the flavored whisky bandwagon, with a test of three flavored versions of The Famous Grouse in Sweden.

Just-Drinks.com reports the test was conducted with Sweden’s state-controlled liquor system, and used three different variations with citrus, vanilla, and spice infusions. “The Famous Citrus” (shown here) was described as a “fresh and zesty infusion of lime, lemon, and orange and The Famous Grouse.” The test expressions were sold in one-litre bottles at 35% ABV, according to the report.

The test comes as Dewar’s and the Scotch Whisky Association remain at odds over the labeling for Dewar’s Highlander Honey, a honey-infused drink based on Dewar’s White Label intended for the U.S. market. That drink is labeled as “Dewar’s Blended Scotch Whisky Infused with Natural Flavors”, and the SWA’s Gavin Hewitt told WhiskyCast in April that the label does not comply with U.K. laws banning the use of flavorings in “Scotch Whisky”. Dewar’s has countered that the labeling is legal under U.S. laws, and Highlander Honey will not be sold in the U.K.

As shown in the photo above, Edrington appears to be in compliance with those laws by labeling its test bottlings as “Infused Spirit Drink”. As for any future availability of the Famous Grouse variations, Edrington officials told Just-Drinks.com that the project was only a test at this stage.

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Kentucky Approves Distillery Construction Tax Incentives

A new maturation warehouse under construction at the Maker's Mark warehouse campus in Loretto, Kentucky during September 2012. The distillery plans to build at least five of the warehouses to expand its maturation capacity. Photo ©2012 by Mark Gillespie. May 30, 2013 – Kentucky economic development officials have approved tax incentives for an expansion project at Maker’s Mark Distillery and preliminary approval for the proposed Angel’s Envy distillery project in Louisville.

The Louisville Courier-Journal reports Maker’s Mark plans an $8.2 million upgrade, including another new 50,000 barrel warehouse at its maturation complex in Loretto. Maker’s has already built three of the massive warehouses, and plans to build at least two more, according to Master Distiller Greg Davis in an interview with WhiskyCast’s Mark Gillespie last September. The distillery also plans what is being referred to as a “state of the art rinse process” facility at the distillery designed to “extract additional gallons” from each barrel of whisky. However, the specifics on that process have not been made available.

The Kentucky Economic Development Finance Authority has approved up to $100,000 in tax rebates on construction materials and equipment for the Maker’s Mark project. Meanwhile, the authority also gave preliminary approval to nearly $900,000 in assistance if the backers of Angel’s Envy build their proposed distillery in downtown Louisville.

Angel’s Share Brands LLC currently buys Bourbon stocks from other distillers for Angel’s Envy, but has been planning to build a distillery since the brand was launched in 2011. According to Business First and the Courier-Journal, the authority gave preliminary approval today for up to $800,000 in employee tax withholdings for up to 10 years, along with $72,000 in state sales tax rebates. The plan would allow the company to keep state income taxes withheld from employee paychecks instead of passing that money along to the state, while the employees would still be credited with paying those taxes. Employee tax withholdings are a common form of economic development incentive, since they are directly linked to jobs created by a project. The Angel’s Envy proposal calls for 40 new jobs with an annual payroll of $1.5 million over the first three years of operation, along with $10 million in capital investment to build the distillery.

Angel’s Envy is produced by the Louisville Distilling Company, which is led by Wes Henderson, the son of former Brown-Forman master distiller and Angel’s Envy creator Lincoln Henderson. The Hendersons have expressed a desire in previous WhiskyCast interviews to build a distillery in downtown Louisville, where local leaders are trying to bring back the city’s historic “Whiskey Row” along Main Street. The area is already the site of the new Evan Eilliams Bourbon Experience scheduled to open this fall, and the backers of Michter’s are trying to restore a historic Main Street building for use as a distillery. Wesley Henderson told the Courier-Journal today that a final decision on whether to move forward with the project has not been made.

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Whisky Label Changes Coming in US as TTB Allows Nutrition Data

May 29, 2013 – Every packaged food product sold in the United States includes information on its label about serving sizes, calories, the amount of fat, carbohydrates, protein and other nutritional content. That is…except for spirits, wine, and beer…which get their labeling standards from the Treasury Department’s Alcohol and Tobacco Tax & Trade Bureau (TTB) instead of the Food & Drug Administration.

Until now, the TTB has restricted the use of nutrition information on labels for alcoholic beverages, despite numerous requests from beverage makers to do so. The agency is conducting a regulatory review process (“rulemaking” in regulator-speak) to set standards for so-called “serving facts” statements, and has now issued an interim rule allowing the use of those statements on labels and in advertising while the process is underway.

The agency has been concerned that allowing nutritional information for alcoholic beverages without context could be misleading to consumers. That context meant a label would have to include the calories, carbohydrates, protein, and fat levels based on a single serving, which was defined as 12 ounces for beer and malt beverages, 5 ounces for wine, and 1.5 fluid ounces for whisky and other distilled spirits. However, not all packaged drinks have the same level of alcohol content — such as a 12-ounce can of whisky mixed with cola at 5% ABV that would still have had to be labeled with the same 1.5 ounce serving size as a 750ml bottle of whisky.

The new standard means beverage companies will be allowed to use “serving facts” statements on their packaging with specific information on serving size (including the number of servings per container) and the percentage of alcohol in that recommended size. The change is not mandatory, and in many cases, adding the information to labels will not require a new TTB application for label approval.

For complete information on the changes, you can read the TTB’s interim ruling here.

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Times of India: Invergordon Sale May Satisfy UK Concerns in Diageo’s United Spirits Deal

May 29, 2013 – The Times of India reports Vijay Mallya’s United Spirits is prepared to consider selling Whyte & Mackay’s Invergordon grain whisky distillery in Scotland to help smooth the way for USL’s acquisition by drinks giant Diageo. A sale of Invergordon is seen as one way to resolve concerns raised by the UK’s Office of Fair Trade over the $1.7 billion deal.

The Times report cites sources familiar with USL’s plans as saying the concerns are over market share in grain whisky production. Diageo already owns the massive Cameronbridge grain whisky distillery and a 50% share in the North British grain whisky distillery (Edrington owns the other 50%), and the Office of Fair Trade is reportedly concerned that adding Invergordon to that portfolio would violate UK competition laws.

In addition to Invergordon, Whyte & Mackay owns the Dalmore, Jura, Fettercairn, and Tamnavulin malt whisky distilleries. However, the Office of Fair Trade is reported to not have concerns over the acquisition of those distilleries, which Diageo CEO Paul Walsh has indicated would be surplus to the company’s needs. Industry analysts have speculated that the malt distilleries could be sold.

Earlier this week, the Financial Times reported Diageo paid around £300 million ($451.5 million USD) for a 10% preferential allotment of USL shares, on t0p of the 27.4% of the company Diageo agreed to acquire last November. The drinks giant’s mandatory bid required by Indian law to acquire another 26% stake of USL shares on the open market failed to generate interest, since the shares have been trading at a significant premium to Diageo’s fixed offer price.

The Times of India report follows a  Business Standard report May 21 on the Office of Fair Trade’s concerns over the deal:

Even as Diageo is waiting to take charge of managing USL, it is understood to be actively working with Mallya on addressing the concerns of the Office of Fair Trade in London over majority control of Whyte & Mackay, a subsidiary of USL in Scotland. According to industry observers, Diageo might have to offload majority stake in Whyte & Mackay to clear this hurdle and steps are being taken in this regard. Advisors to the UB Group have, however, indicated there is around six months to address that issue, after the closure of the deal in India.

However, the May 28 Times of India report indicates that the UK regulators would be satisfied with a sale of the Invergordon facility and not require Diageo and USL to sell the entire Whyte & Mackay unit.

A spokesman for Whyte & Mackay referred requests for comment on the report Monday to United Spirits and Diageo, noting that the deal and its ramifications are a matter for those companies.  A spokesman for United Spirits told WhiskyCast in an email Monday that the company does not respond to “market speculation”.

WhiskyCast has also reached out to Diageo and the Office of Fair Trade for comment on the reports. This story will be updated with their responses.

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Business Standard: UK Regulators May Force Whyte & Mackay Sale

Updated May 28, 2013 – Diageo is still acquiring shares of Indian liquor magate Vijay Mallya’s United Spirits (USL) in an attempt to gain majority control of the company. The Financial Times reports Diageo has paid around £300 million ($451.5 million USD) for a 10% preferential allotment of USL shares, on t0p of the 27.4% of the company Diageo agreed to acquire last November. The drinks giant’s mandatory bid required by Indian law to acquire another 26% stake of USL shares on the open market failed to generate interest, since the shares have been trading at a significant premium to Diageo’s fixed offer price.

However, the delay in acquiring that majority stake appears to be buying Diageo some time to work on a solution for one side effect of the acquisition. USL’s ownership of Scotland’s Whyte & Mackay has been seen as a potential issue since the deal with Diageo was announced, since it poses potential competition issues in the Scotch whisky market.

The Business Standard reports that the UK’s Office of Fair Trade has expressed concerns over the deal, since Diageo already controls around 35%  of Scotch whisky production and sales. Whyte & Mackay owns its namesake blended Scotch, the Dalmore, Jura, Fettercairn, and Tamnavulin malt whisky distilleries, and the Invergordon grain whisky distillery.

Even as Diageo is waiting to take charge of managing USL, it is understood to be actively working with Mallya on addressing the concerns of the Office of Fair Trade in London over majority control of Whyte & Mackay, a subsidiary of USL in Scotland. According to industry observers, Diageo might have to offload majority stake in Whyte & Mackay to clear this hurdle and steps are being taken in this regard. Advisors to the UB Group have, however, indicated there is around six months to address that issue, after the closure of the deal in India.

If the Office of Fair Trade decides to take formal action, that would lead to the case being referred to the UK’s Competition Commission for a final decision. The remedies could range from Diageo being ordered to sell a majority stake or all of Whyte & Mackay to selling off other parts of its whisky portfolio. The Commission could also rule that the deal would not be anti-competitive and allow it to go forward with no divestment necessary.

A spokesman for Whyte & Mackay referred requests for comment on the report Monday to United Spirits and Diageo, noting that the deal and its ramifications are a matter for those companies.  A spokesman for United Spirits told WhiskyCast in an email Monday that the company does not respond to “market speculation”.

WhiskyCast has also reached out to Diageo and the Office of Fair Trade for comment on the Business Standard report. This story will be updated with their responses.

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1993 Photo Shows Highest Whisky on Earth

The 1993 Expedition Team at Mount Everest's Camp Two. Photo by John Barry courtesy Glenmorangie. May 29, 2013 – Today marks the 60th anniversary of Sir Edmund Hillary and Tenzing Norgay’s historic first summit of Mount Everest in 1963, and 20 years since Rebecca Stephens became the first British woman to reach the highest point on Earth in May, 1993. Stephens was part of an expedition team sponsored by Glenmorangie, and a newly-discovered photo shows that team with a bottle of Glenmorangie at what’s believed to be the highest spot a bottle of single malt has ever reached.

In a news release, Glenmorangie President Paul Skipworth noted that the team had taken a case of Glenmorangie with them to Everest, but assumed that they had only taken it as far as their base camp. However, a photo discovered in the company’s archives this month shows the team with one bottle at Camp Two, about 21,300 feet up the 29,000 foot mountain. Stephens identified the location when she viewed the archive’s photos.

“The support we received on our climb was invaluable and our bottles of Glenmorangie raised spirits in every sense. It’s only when Glenmorangie showed me the pictures from their archive that I realised how significant taking that bottle up to Camp Two had been: to be honest, I hadn’t thought to mention it!”

Stephens now chairs The Himalayan Trust UK, which helps fund education programs for the people of Nepal, and laid down a cask at the distillery shortly after returning from the expedition that eventually raised £15,000 for the Trust. To mark the dual anniversaries, Glenmorangie will make a donation to the Trust and the Mount Everest Foundation, charities chosen by Stephens.

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Jim McEwan Celebrates 50 Years in Whisky

Jim McEwan noses a dram during Bruichladdich's 10th anniversary celebration September 10, 2011. Photo by Mark Gillespie © 2011.

Jim McEwan noses a dram during Bruichladdich’s 10th anniversary celebration September 10, 2011. Photo by Mark Gillespie © 2011.

May 24, 2013 – Jim McEwan is arguably the most well-known figure in Islay whisky today. He spent 38 years at Bowmore Distillery, working his way up from an apprentice cooper to distillery manager. In 2001, he left the security of Bowmore for the uncertainty of Bruichladdich, which was being reopened after years of being mothballed.

“The first day I walked through the gates of Bruichladdich, January 6, 2001…I’d just left Suntory, a company which I loved dearly after 38 years at Bowmore….come in the gates of Bruichladdich and thought ‘Wow…Jim,you’ve just made the biggest mistake of your life” — I was wrong.”

12 years later, Bruichladdich is thriving and McEwan is marking his 50th year in the whisky business during the distillery’s open day Sunday (May 26) as part of  the annual Islay Festival of Malt & Music.

In late 2010, McEwan told WhiskyCast’s Mark Gillespie that he intended to retire on his 50th anniversary to spend time with his young grandchildren. However, that news was always greeted skeptically by McEwan’s friends and colleagues, and in a telephone interview today, he said he’s agreed to stay on with Bruichladdich for three more years at the request of new owner Rémy Cointreau.

“They understand what we’re about, and the message is clear from Rémy…that just keep doing what you’re doing…that’s why we bought you,” he said.  “They totally get it…they get the whole thing, they understand how we work here..I’ve been there and I’ve seen them do their cognac and all the stuff, and the attention to detail and quality just blows me away.”

However, Jim will not continue with one of the responsibilities he’s held since 2001. When Bruichladdich agreed to sell its Murray McDavid independent bottling range to Aceo Ltd. earlier this spring, it ended McEwan’s role in selecting the casks of whisky to be bottled under that label.

“We just want to put all of our focus on Bruichladdich, Port Charlotte, and Octomore,” he said. “We cannot expend any energy on other products, so everything, all of the money will go to double production. We did a great job with Murray McDavid, and I wish them well, but we’re just focusing on Bruichladdich.”

For the entire interview with Jim McEwan, including the whiskies he selected for his 50th anniversary master class to be held on Sunday at Bruichladdich, listen to this weekend’s episode of WhiskyCast.

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The Macallan Anniversary Malt Sells for $27K at McTear’s

The Macallan Anniversary Malt bottle that sold for $27,200 at McTear's on May 22, 2013. Photo courtesy McTear's.

The Macallan Anniversary Malt bottle that sold for $27,200 at McTear’s on May 22, 2013. Photo courtesy McTear’s.

May 24, 2013 – A bottle of The Macallan Anniversary Malt from 1983 led the bidding at this week’s McTear’s auction of rare whiskies in Glasgow with a bid of £18,000 ($27,200 USD).  The whisky was distilled in 1928, and the bottle was #207 of 500 produced by The Macallan.

While the Anniversary Malt was by far the best performer, with a pre-sale estimate of between £14-16,000, other Macallans filled out the list of high bids. A 1950 Macallan sold for £1,900, while a special “Nicol’s Nectar” bottling of casks selected by former master blender Peter Nicol on his retirement in 1996 went for £1,000.

The highest-performing non-Macallan whisky at the auction was a  blended Scotch — a rare bottle of J.W.& S. Ltd. Hill Street 1956 Blended Scotch Whisky that sold for £1,600 ($2,420 USD).  John Walker & Sons bottled the whisky in a Johnnie Walker Swing-style bottle to mark the opening of its new offices on Kilmarnock’s Hill Street September 11, 1956.

The next McTear’s whisky auction is scheduled for June 26.

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anCnoc & Peter Arkle Team Up for Third Whisky Release

The anCnoc Peter Arkle Series #3 "Bricks". Image courtesy anCnoc. May 21, 2013 – Scottish illustrator Peter Arkle’s third single malt in his collaboration with anCnoc features another aspect of the distillery’s heritage.  anCnoc’s Peter Arkle Limited Edition #3 “Bricks” features his drawing of a dunnage warehouse wall at Knockdhu Distillery in Aberdeenshire, where anCnoc is produced. The first two editions featured his illustrations of anCnoc’s ingredients and casks, but in a news release, Arkle cited his experience in the warehouses as the inspiration for the third whisky.

“On one hand it’s just a drawing of the bricks that make up the walls of the distillery and the warehouses with a yellow sign stuck on. But, on the other hand, those bricks are so old and so soaked with the essences of anCnoc – absorbed over the years – that they are not just any old bricks. They are bricks with real character and history. And the sign is there to remind people that anCnoc is not something you can take for granted. One must handle something remarkable with care.”

#3 Bricks was matured in Spanish oak ex-Sherry butts and American oak ex-Bourbon barrels, and is bottled at 46% ABV with no chill-filtering and no caramel coloring. 1,000 cases will be available at retailers in the UK, US, Canada, Germany, Russia, Japan, and Taiwan, with a suggested retail price of £49.99 ($76 USD).

Arkle and anCnoc are also teaming up for a Twitter-based competition on June 17, in which contestants will be asked to tweet a photo of their “perfect anCnoc moment” that day (using the hashtag #youranCnoc). Ten winners will be chosen to have their moments hand-drawn by Arkle on the label for a unique bottle of anCnoc whisky, while one winner will receive a trip to meet Arkle at his studio in New York City.
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English Whisky Company Honors 60th Anniversary of Queen’s Coronation

The English Whisky Company's "Coronation Whisky". Image courtesy English Whisky Company. May 21, 2013 – June 2 marks the 60th anniversary of Queen Elizabeth’s coronation in 1953, and while Great Britain celebrated the Diamond Jubilee of her rise to the throne last year, more celebrations are planned in the United Kingdom during the next few weeks.

The English Whisky Company, which was England’s first legal whisky distillery in 100 years, is releasing a special single malt whisky to mark the occasion. The “Coronation Whisky” will go on sale May 23, and comes from 7 casks. 1, 850 bottles will be available worldwide, as well as through the distillery’s web site.

For more on this whisky, listen to Mark Gillespie’s interview with Andrew Nelstrop of the English Whisky Company in Episode 421 of WhiskyCast.

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