Dynamic’, ‘innovative’ and ‘American whiskey’ aren’t words that often appear in the same sentence. But at the moment you’d have to look long and hard to find any whisky-producing nation more energised or dynamic than that of the United States.

The rise and rise of craft distilling in the country has continued unabated in recent years, but if you have been following what has been happening Stateside and think the ride has been exciting so far, then strap yourself into your seat because, quite frankly, we ain’t seen nothing yet. 

American whiskey is entering a critical and game-changing period as the first wave of new distillers come of age and set about getting serious, and how events pan out in the coming months will have a huge bearing on how the American whiskey industry looks in the future and how big a player on the international market it is going to be.

But, while the ride has been and will be an exciting one, it’s about to be very bumpy as well. There are big battles ahead as the new distillers vie to establish themselves and the traditional big producers in Kentucky retrench, call rank and seek to take advantage of a growing number of new overseas markets.

Overall American whiskey is in a major state of transition and some serious questions need to be answered, the biggest of which is ‘will the real American whiskey scene please stand up’?

It’s worth taking a minute to reflect on just what has taken place in America in the past decade.

Not that long ago American whiskey consisted of a handful of distilleries in Kentucky making bourbon,  two in Tennessee making Tennessee whiskey, and a smattering of distilleries across the country making small, inconsequential and rarely exported whiskey. Although Jack Daniel’s is America’s biggest producer, Kentucky bourbon is the nation’s standard bearer. It is a region renowned for its traditionalism and, with the exception of a little bit of rye and wheat whiskey production, it has been content to make one style of whiskey exceptionally well.

The rules governing the production of bourbon are stricter than even those governing the production of Scotch whisky and never is the expression ‘you don’t fix what’s not broken’ more in evidence. And Kentucky’s simple and straight way of doing things has benefited other regions, too. For instance, although American whiskey can be bottled at any age, the Kentucky distillers have always been happy to recognise the Scottish-led European definition of whisky as having to have matured for three years, and has unquestionably exported only older stock to Europe. Indeed, until the growth of the new craft distillers, American whiskey was in a state of contented equilibrium.

Evolution

That’s not to say that it hasn’t evolved at all. Indeed, the opposite is the case. 

The distillers of Kentucky, aware of the growing market for premium and super-premium whiskies in markets such as China, Russia and India being exploited by Scotch whisky producers, had systematically and successfully moved their whiskey from the bottom shelf to the top shelf through smart repackaging, new expressions and an upsurge in special releases, higher-strength bourbons and single cask offerings.

And, although the craft distilling movement has taken credit for the innovation that we are seeing in America now, the distillers of Kentucky had dabbled in this area, too. Woodford Reserve has released an annual special distiller’s edition for several years now, experimenting with whiskey matured in Sonoma Cutrer wine casks, bourbon made with four grains, and one from a sweet mash recipe. 

Over at Buffalo Trace a small still is used specifically to make experimental whiskeys. The distillery has also experimented with wine casks, but also with dark, full-flavoured whiskeys and even smoky ones. If you want proof that these sort of experiments go way back then look at the age of some of the whiskeys – 15 years and older, certainly pre-dating the craft distillers movement.

According to master distiller Harlen Wheatley, there is nothing new about such experimentation at all. “All distillers do it,” he says. “It’s just that most of the time we do not release the whiskey because it does not meet our quality standards. We take things to new extremes for fun but a large number don’t work.”

Buffalo Trace has a specific experimental range and has released more than 25 small-batch bottlings. The failures run into hundreds and possibly thousands.

They’re a polite bunch in Kentucky, but you don’t need to scratch very far below the surface to find that not all the distillers of the state are enamoured with the new producers, for various reasons. One of the main ones, though, is the quality argument. Simply put, the old distillers have the size and commitment to reject anything that doesn’t meet their exacting standards, they say. The new producers can’t afford to reject large amounts of their whiskey, so they put out anything, damaging the reputation of all whiskey in the process.

When the new craft distillers started to produce whiskey, Kentucky was at first dismissive and then contemptuous. But that has changed as at least some of the new players have stepped up a gear and are set to enter the international market on a serious level for the first time.

Over the past few years craft distilling has become a huge movement in America. And you can plot its progress by looking back to the growth of the craft brewing revolution which preceded it, because it mirrors it almost perfectly.

Supported by the American Distilling Institute, which has published books on how to go about distilling, with training sessions and courses, and with events and exhibitions, the craft movement has flourished and is far from done yet.

There are now about 400 craft distillers and the number is growing. The movement has built its own momentum, the early distillers paving the way for successive ones by acting responsibly and persuading legislators that, in economic and tourist terms, they are a force for good.

Flourishing trade

That in turn has made it much easier for more recent distillers to be ushered through the door. Laws introduced after Prohibition which hindered the progress of many new distillers have started to be swept aside. In an Obama-led America intent on creating new jobs to raise new tax revenue, craft distillers have been allowed to flourish, and it has been able to influence legislature at state level. In New York for instance, a bill has been introduced to revamp the entire licensing section of the Alcohol Law, modernising and standardising all the various drinks categories.

And the movement is far from finished. Indeed, look at what happened in the beer industry and we’ve just reached the point where the best producers are consolidating their positions, expanding, and preparing for a proper crack at overseas markets. It’s the point when the better spirits makers start to distance themselves from what they see as the inferior ones – and when some of the bigger ones reach the sort of respectability which effectively gives them more common ground with the established whiskey makers than with what they consider are snake-oil men turning to distilling in search of a quick buck.

But, while they have reached a level of respectability, that doesn’t mean they have become part of the establishment. Far from it. They are irreverent, confident, ambitious and intent on knocking over statues if and when the need arises. And, most of all, they are thinking in a totally different way. 

Ralph Erenzo, co-founder of Tuthilltown in New York, says that craft distilling is a force for good and will continue to grow. “There will continue to be an increasing number of new distilleries for the next few years in America,” he says. “The market will be flooded with new products and new categories. As the growth steadies and levels out, many of the non-performers will drop out, failing due to poor product, poor marketing, overspending, overstaffing, poor management, whatever. Then it will likely level out again and maintain a steady, reasonable growth. There’ll be lots of used equipment available then. That’s what happened in the microbrewing industry 20 years ago.

“The entry of many new producers experimenting with a wide variety of methods and materials has brought new spirits to the spirits industry. It has brought in many new thinkers and product choices which has, in turn, forced the major producers to rethink their own product lines.

“It sometimes takes an outsider to spark change and improvement to the old system. The entry of the new to the industry is bringing a sense of exploration and adventure to the spirits industry.”

It will be some time before many international markets get to experience the products of the new distilleries but, nevertheless, the expansion of the older and more established craft distillers has been phenomenal. And they haven’t just become numbers in the bigger American whiskey industry picture: they are genuinely offering something new. Distillers such as Balcones and Corsair have built an international name for new and unusual flavoured whiskey.

Corsair is a classic example of the best of the new wave of distillers. The three partners behind the business started off home-brewing beer, decided they wanted to have a crack at making whiskey and used the craft brewing revolution as inspiration, building their own stills and setting out to make whiskeys that are genuinely different.

“We believe in fearless experimentation,” says founder Darek Bell. “We make unique, innovative and unusual products that do not easily fit into the existing whiskey categories. Our motto is simple: if it has been done before we do not want to do it. Our goal is to expand the horizons of whiskey making.

“We make smoked whiskeys using unusual smoked fuel sources, that is, not dominated by peat. We make whiskeys that use mash bills foreign to mainstream distilling that utilise unusual grains such as quinoa or malts used in brewing but rarely in distilling, such as chocolate rye malt, biscuit malt, or caramel 120. 

“Our brewing background has strongly inclined our approach. There are so many malts and grains used in beer making that for some reason distillers have never used. One of our favourite sayings at Corsair  is ‘beer is simply whiskey that hasn’t yet reached its true potential’.”

Threat to old order

With consumers increasingly looking for new trends and ideas, craft distillers such as Corsair offer a real threat to the old order in the future. When that happens is to be seen, but the day is not far away. Indeed, it’s a sign of how serious the leading craft distillers are that the likes of Tuthilltown, Balcones and Corsair have distanced themselves to a large extent from the American Distilling Institute with the formation of a new organisation, the American Craft Distillers Association, which is less about helping new distillers set up, and more about opening new doors worldwide.

“The formation of the ACDA signalled to the US industry the arrival of an industry association representing craft members,” says Tuthilltown’s Erenzo. “It is unaffiliated and not part of the Distilleries Council of the United States (DISCUS). The first task is the pursuit of a discounted Federal Excise Tax for the craft producers, similar to the discount enjoyed by microbrewers and wineries.”

That’s an internal American issue, as is the desire of some of the established craft brewers to draw attention to, and shame, the American craft distillers who are giving the sector a bad name. Several are simply buying in spirit and putting it in their own bottles and implying they distilled.”

But it’s only a matter of time before they turn their sights on foreign markets. And that might have implications for the European whiskey market. The new producers don’t have the same respect for the three-year rule as the traditional distilleries, for instance.

Chip Tate, who has just expanded his Balcones distillery having originally built it from scratch, says that it is not about the three-year maturation rule at all.

“I have already been contacted by the Scotch Whisky Association and I politely told them that their comments had been noted but I didn’t engage with them,” he says. “They don’t like what we’re doing but that’s their problem. Our view is that it’s for America to decide what American whiskey is, and American whiskey does not have to be three years old. We want American whiskey to be recognised in the same way as Scotch is.

“But it works the other way round. We believe that America shouldn’t define what single malt whisky is. At the moment single malt whisky must be matured in virgin oak barrels to be sold in the US. Scotland and Ireland are exempted from that rule so it hasn’t mattered. But now the likes of England, Wales, Sweden, the Netherlands and France are producing single malt for export that picture is changing. It’s a matter of time.”

A matter of time

What the growth of American craft distilling means is that it’s only a matter of time before countries all over the world will be experiencing a wide variety of new flavours from America. Some new American distillers are already looking for partners to pursue new routes and distribution channels across the world. Others are openly stating that they’re trying to create a business that will attract investors and/or purchasers to expand internationally.

Dynamic and innovative American whiskey is coming your way soon. Now who would have thought that even 10 years ago?