The Scotch Blog

Oskar Blues joins with Colorado whiskey maker

Back in December, we wrote about how Flying Dog Brewery's move would create a void for Stranahan's Whiskey wash-wise.

Today, I can announce that the problem has officially been solved - with Oskar Blues - makers of some damned fine beer - stepping in to produce "the custom-made distiller's wash used to create the unique whiskey made by Stranahan's Colorado Whiskey."

Since it opened in March of 2003, the pioneering micro distiller has been making its all-malt, Straight Rocky Mountain Whiskey from a wash produced by Flying Dog Brewery. Stranahan's is the first US micro distiller to use this novel method, one now embraced by a handful of other small-batch distillers.

Last December, when Flying Dog announced the moving of its brewing operations to its Maryland brewery, we got in touch with Stranahan's founder Jesse Graber and offered to be his new brewery partner.

We'll provide them with about 100 barrels of wash (about 3000 gallons) each week. They'll double distill that down to about 300 gallons of spirit each week, which they then age for a minimum of 2 years in charred oak barrels in their facility in Denver.

We're big fans of Graber's trailblazing whiskey and his rule-breaking ideas.

Thanks to a handful of novel methods that Stranahan's employs (including the brewery-made wash), they create an exceptionally delicious and smooth whiskey with an age-defying depth of character.

<Photo: Dale Katechis and Jess Graber standing before the barrels in the Stranahan's aging room.>

Does that sound very Beer-oriented? That's because it is - I got this story from Oskar Blues - via my friend & beer writer Stephen Beaumont.

“This is a very big deal for us,” says Oskar Blues founder Dale Katechis.  “Jess and his team are whiskey mavericks, they’re doing for whiskey what craft brewers have done for beer. They’ve proven that with guts, talent and a blind eye to the status quo, one can make whiskey as good as any out there.”

The brewery-made wash is made for Stranahan’s from a recipe created by Jess Graber. After mashing in and fermentation, the wash is filtered prior to distillation. This filtering frees the wash of many of the harshness-producing characteristics found in traditionally produced whiskey mash.

“This cleaner, purer wash,” says Graber, ”gives us a really superior product to start with, and it reaches maturity much faster.”

Oskar Blues began canning its beers -- two cans at a time on a table-top machine -- in November of 2002. The company’s flagship, Dale’s Pale Ale, is the nation’s first hand-canned craft beer and the trailblazer for America’s growing micro-canning niche.

According to Oskar Blues the arrangement with Stranahan's will also allow them to expand their barrel-aged beer capabilities in the months ahead. That means good news for beer lovers and whiskey lovers - and after all aren't we both?

The Lazarus Syndrome

I recently had a chance to chat with Dr. David Thomson, who is the chairman of MMR Research, a professor at Reading University, and the new owner of the long silent Annandale distillery.

---

A brief history of the Annandale Distillery

Originally established in 1830 by George Donald & Co., Annandale was run by the Donald family until 1882 when it was leased to John Gardner. Alfred Barnard visited the distillery while it was under the purview of Mr. Gardner, and his impressions are included below.

In 1893, the expanding John Walker & Sons acquired a distillery called Cardhu (which is still a primary single malt ingredient in their ubiquitous blends). In 1896, John Walker & Sons acquired their second distillery - Annandale. But they didn't hold onto it for very long in the grand scheme of things - mothballing the distillery in 1919 and closing it for good in 1921.

The site became a fram and the distillery itself has remained shuttered until this acquisition.

You can read more about Annandale in Brian Townsend's Scotch Missed and in Misako Udo's The Scottish Whisky Distilleries.

---

Barnard's Take on Annandale (circa 1885-1886)

ANNANDALE DISTILLERY, ANNANDALE, DUMFRIESSHIRE.
PROPRIETORS, JOHN S. GARDNER & SON.

After resting and refreshing ourselves at Dumfries, we resumed our journey southwards, and made our next stoppage at Annan, the capital of Annandale. It stands on the high road from Dumfries to Carlisle, is a royal burgh, and one of the cleanest and pleasantest towns we have seen in the Lowlands.

Annandale, from whence the distillery takes its name, is really the valley of the river Annan, commonly called the How of Annandale, and one of the most garden-like districts in Scotland. The soft bright landscape of luxuriant green, of clustering foliage, of rich verdant pastures, gives to this valley the appearance of English scenery. The river Annan, which rises in the Hartfell mountains, runs a course of thirty miles through this valley into the Solway Firth. We drove 11 miles from the hotel to the Distillery, along a pretty country road, from which we diverged down a private carriage-way, crossing a bridge over the Annan Burn, and found ourselves at the gates of the works.

12 is the new 10

t's been quite a while since I had one of my Industry Round Table stories - where I throw out a question and see what some people in the industry think. And maybe, just maybe, if I can ask such a dumb question that no one responds.

For no particular reason I was thinking about the progression in age statements - that is, how 10 year old expressions seem to be less common and in some cases how 12 year old expressions are becoming a distillery's "entry point" - the flag-ship and youngest expression in the distillery fleet.

We all know that older isn't better.

We also know that older IS generally more expensive.

So I want to know - is there a reason why the 10 year olds are getting pushed out by their older brethren?

To look at this from another angle - are those companies that ARE replacing their 10 year old with a 12 year old expression doing so to open up a slot for a new price point with a younger (5 - 8) or even no-age statement whisky with a more attractive price and more mass market appeal?

INTERLUDE Boy, that sounds like exactly the kind of strategy some smart liquor producer might want to consider. Why? Because of this conversation I have all too often: Young Guy/Girl: So you write about Scotch? Kevin: Something like that . . . This is where I either hear "I tried it and hate it" - in which case the convo goes down a different path . . . or I hear this: YG/G: I tried it and liked it, but it is too expensive for me. K: Well you you know, the reason it's so expensive is because  <maturation time; quality; importation costs; blah, blah, blah> .  . . YG/G: Yeah that's great. It's still too expensive. And most of you (they/we?) have already vilified blends as "inferior" <JUST PART of the reason so many in the industry are up in arms over the term "Blended Malt">  to the point where blends can not successfully fulfill this role as the  entry level drug for Single malts. So we need some quality vatted malts  to fulfill this role.

Columba Cream rises to the top.

Last September I did a short blurb about Columba Cream based on a story by Will Lyons in Scotland on Sunday called Columba Cream Plan Hits The Rocks.

That short blurb was followed up by an email from Jamie Morrison and resulted in a Christmas story called Columba Cream Responds. The story detailed a lively back and forth and resulted in an even more lively string of responses.

This past week Jamie was eager to let me know that there was great news for the Scottish Liqueur Centre; namely that Columba has been faring very well with shoppers at Waitrose (a UK-based grocery chain) and has been picked up at all 186 Waitrose locations.

According to the Waitrose press release:

First launched in Waitrose’s two Scottish stores last year, Columba Cream has proved so popular with customers that the supermarket will sell it nationally.

Last Christmas the single malt cream and honey liqueur quickly became the top selling spirit in Waitrose’s Edinburgh branches.

Now thanks to the exclusive deal with Waitrose, the small independent company that makes the drink - The Scottish Liqueur Centre - it is expecting to double its turnover to £1million by the end of this year.

Jamie also wanted me to know that Columba Cream was the biggest selling spirit (yes - outselling all other spirits, not just liqueurs) at the Waitrose stores during the 2006 Christmas holiday.

What's more remarkable is that this was accomplished without resorting to the standard UK practice of deep discounting.

Bacardi prepares for growth; Makes Scottish land grab

Hey Kids.

I'm traveling to Kentucky today to visit Maker's Mark and Jim Beam.

Bourbon? On The Scotch Blog??

Why the hell not. Maybe it's time to change this site to "The Whisk(e)y Blog".

I'm also hoping to get a chance to visit one of the lesser talked about Kentucky whiskey institutions. Blue Grass cooperage? No. But maybe I'll try to fit that in as well. Stay tuned.

And remember Keep the feedback coming in for THE DRAMMIES. They don't want everyone to know, but many in the industry like The Drammies the best because it represents what YOU like.

Plus, it has the coolest name of ANY whisky award.

---

On November 8th, Bacardi, the largest privately held spirits company in the world, announced the purchase of a 106 acre parcel of land, which will eventually be the site for a new "maturation, blending and storage facility" for their Dewar's portfolio.

The land is located in South Lanarkshire, about 25 miles outside of Glasgow, between Douglas and Lesmahagow, and is to be acquired from Scottish Coal, part of Scottish Resources Group.

Dewar's plans to develop the site to accommodate bonded warehouses and a bulk and blend center capable of housing more than a million casks. Plans call for having the first phase operational by January 2009.  Construction is planned to be undertaken in consecutive phases, starting in 2008 with an estimated completion in 2018.

The land deal is part of a previously announced $250 million investment in Scotch whisky production over the next 10 years. The investments are primarily to expand to keep up with the demand in BRIC (Brazil, Russia, India, China) and other emerging markets.

Jon Grey, Vice President, Bacardi Global Operations:

Buying this piece of land in Scotland—known worldwide for its premium whisky—is the cornerstone of one of the most significant investments ever in the Scotch industry. Bacardi has always invested heavily behind our brands and their heritage.

I don't spend much time talking about Dewar's, but it is important to note that is is the number-one selling blended Scotch whisky in the United States, beating even Johnnie Walker.

Founded in 1846 by John Dewar Sr., John Dewar and Sons Limited has grown from a small wine and spirits merchant shop in Perth, Scotland, to become a global brand. Today, DEWAR’S is one of the largest whisky brands in the world, and the top selling blended Scotch whisky in the United States. The foundation stone of the portfolio is the WHITE LABEL blend, which was first created in 1899.

The Bacardi blended Scotch whisky portfolio is broken into 2 distinct lines: Dewar's & William Lawson.

The Dewar's line includes the ubiquitous Dewar's White Label; Dewar's 12 Years Old Special Reserve Blended Scotch Whisky; Dewar's 18 Years Old Founder’s Reserve Blended Scotch Whisky; Dewar's Signature Blended Scotch Whisky; and Dewar's 15 Years Old Blended Highland Malt Whisky. While on the Lawson's side there's Willam Lawson's Finest Blended Scotch Whisky, and Willam Lawson's Scottish Gold 12 Years Old Blended Scotch Whisky.

It's a little confusing as Bacardi groups both the blended Dewar's brands and single malt Aberfeldy under the "Dewar's" umbrella.

On the single malt whisky side, Bacardi currently operates six five distilleries: Aberfeldy, Macduff, Aultmore, Craigellachie and Royal Brackla.

The broader Bacardi portfolio includes (among others) the top-selling Bacardi Rum; the much over-hyped Grey Goose vodka; the old guard Bombay gin; and the very tasty Bombay Sapphire gin.

 

Ratings revisited and the horror of "Edvertising"

I hate ratings.

We'll get to whisky in a bit, but first, take a walk with me into the strange and unbelievable world of wine critique.

The triumvirate of wine publications.

Wine Enthusiast, Wine Advocate, Wine Spectator. These magazines aren't sold for their editorial content. They are sold on the numerous, abridged reviews they do each month, to people who are apparently incapable of making wine purchasing decisions on their own.

Taste, review; taste, review. They churn through wines (apparently by the case load) for each monthly issue - slapping each wine with a breviloquent single paragraph review and a rating . . . allegedly on a scale from 0 - 100.

Yes, the scale is 0 - 100, but apparently it's ass water if it scores below 80, and "Wines receiving a rating below 80 are not reviewed".

I wonder - "why not?" Aren't readers of these magazines just as interested in what NOT to buy as what to buy? I'd wager the answer to that question is "Yes".

So why wouldn't a magazine that prides itself on being the final word in wine critique actually do some critiquing???

Could the impact of (potential) lost advertising sales be a factor in not mentioning the unmentionables? Of course it could.

Keeping it in the family

After 40 years with the company and 14 years in the position, Ian Urquhart is stepping down as Managing Director of Gordon & MacPhail.

Ian will retain a part-time, Non-Executive Director role, with the company; and G&M will remain firmly in the capable hands of the Urquhart family with Ian's brothers Michael & David Urquhart assuming joint Managing Director responsibilities.

The fourth generation of the family is also well-represented in the management structure with nephews Stephen Rankin and Neil Urquhart assuming additional responsibilities as Associate Directors within the company. But It's not all family at the helm - Associate Directors Ewen Mackintosh and Derek Hancock will also take on more work. Ian Chapman steps up to Marketing Manager.

Commenting on the reorganization, Michael Urquhart, says:

We thank Ian for his hard work, commitment and service to Gordon & MacPhail over the last 40 years and we wish him all the very best in his retirement.

We started the preparations for this reorganisation over eighteen months ago by appointing four Associate Directors and investing in a comprehensive management training programme.  We have a strong team in place at Gordon & MacPhail as we look to the future and the challenges this will bring.  We remain committed to providing consumers around the world with the highest quality products and excellent customer service.

Exciting times for one of Scotland's most respected independents. Gordon and MacPhail has over 110 years experience in maturing and bottling single malt whiskies.

Since their founding in 1895, Elgin-based Gordon and MacPhail have purchased ‘new make’ whisky which they mature and bottled themselves - as such G&M are able to offer the most extensive selection of single malts in the world. In addition G&M owns the Benromach Distillery in Forres. 

For more info on Benromach, read this past story.

Here's Johnnie

I always look forward to pieces by Will Lyons in Scotland on Sunday.He recently did a piece on Johnnie Walker that goes beyond the usual reporting on facts and figures and gets to the heart of the real story.

Love it or hate it, Johnnie Walker is the face of Scotch whisky to much of the world. And as much derision as I give Diageo for some of their marketing practices, the JW brand follows the "Erskine Prescription" for whisky marketing - desist "castles and kilts" marketing and focus on lifestyle and taste - and Diageo has done a bang-up job of this over the years.

Here are the first few paragraphs of this great story....

Here's Johnnie

Sunday, September 2, 2007
William Lyons

IT WAS a damp, bleak November morning seven years ago when Ivan Menezes, global marketing director for Diageo's spirits division, unveiled a £100m marketing push for the group's flagship brand.

It was to be the group'€™s first ever global advertising campaign and came on the back of a lengthy period of stagnation for Johnnie Walker and a fall in sales. The new adverts marked a significant departure from the traditional Scotch advertising that relied on Highland glens, roaring log fires and cut-glass tumblers full of whisky. In their place were images of Harvey Keitel confronting his stage-fright and Ramon Kelvink, a French tightrope walker, crossing from one New York skyscraper to another.

Fielding questions from the assembled press pack, Menezes denied that the new campaign, which was to focus on South America, was taking Scotland out of Scotch.

€œ"We are losing older drinkers by the bucketful," he fulminated, "but only gaining new ones by the thimbleful. We will all benefit from everyone focusing on building brands and making their brands relevant to younger consumers. We are going to revitalise the category by relevant brand building."

Fast forward to last Thursday morning and it was very much mission accomplished. Delivering full-year results to the City, Paul Walsh, Diageo's chief executive, bullishly announced that Johnnie Walker had enjoyed a record year. Exceeding all expectations he told the market that whisky drinkers had spent £3.5bn on more than 15 million cases in the past year.

This one brand now accounts for half of Diageo's Scotch whisky sales and £1bn of £7bn group turnover. At any one time there are seven million bottles waiting to mature at its 27 distilleries in Scotland, making it the third largest spirit and wine brand in the world. To put it another way, 178 glasses of Johnnie Walker are now consumed every second.

A day later, speaking by telephone from Amsterdam, Johnnie Walker'€™s global brand director, Ben Anderson, echoed his sentiments.

"It now truly is a global brand. It is drunk in more than 200 countries and is the number one selling Scotch by a country mile. With our sponsorship of Lewis Hamilton's Formula One team we are exposed to more than four billion people around the world every year. It is fair to say Johnnie Walker sits firmly alongside the world's iconic brands. You see this in people's reaction to Johnnie Walker from Sao Paulo to Shanghai. It'€™s just phenomenal; there is a real passion for this brand."

Read the rest of the story at Scotland on Sunday....

More on the Glenmorangie "make-over"

According to a story in the August 7th Herald, the results of the Glenmorangie "extreme makeover" will be rolled out this coming October.

Included are some REALLY risky changes:

• They plan to reinvent themselves as a "luxury brand" and focus overseas.
• The Port, Sherry, Madeira and Burgundy Wood Finish whiskies will be relaunched under new names such as The Quinta Ruban, Nectar d'Or and LaSanta.
• The bottles have been redesigned and will look like "curvy cognac bottles", according to a company source.
• Rumors speak to plans to increase the price of a bottle of single malt by £10 to support the placement as an exclusive luxury brand.

According to one "company source":

"The company seems willing to take the risk of losing market position in Scotland if it means capturing bigger and more lucrative markets abroad."

At least they understand and are planning for the inevitable fall from the position of Scotland's #1 single malt.

As much as I chide the industry for using "Castles and kilts" in marketing, I'm not sure becoming a different nationality is the right answer either. Will this work overseas? Only the right combination of an astounding marketing budget combined with an easily swayed, status-seeking consumer base - and perhaps product placement with the right celebrity will ensure this.

It could work.

And if it does . . . get ready for as many copy-cats as the last time Glenmorangie tried something risky - those much maligned "wood finishes"

Read the full article here.

Breaking News: PC5 comes to America

Port Charlotte's PC 5 is on the way to the US.

Only 200 cases will be available starting this August, with an SRP of $120 a bottle, and distribution will likely be clustered in Chicago & New York.

When PC 6 makes its appearance, there should be at least twice the number of available cases.

And in a coup, Wyatt-Zier (current Compass Box importers) has landed the importation contract for Port Charlotte whiskies (Bruichladdich whiskies are currently imported by WineBow - who will retain importation rights to that label.)

For more info contact Ken or Ron.