The Historic Art of the
Written by JASON BARRETT
INDEPENDENT D BOTTLER istillers often look to history when developing marketing narratives, but it may be time to examine history in order to re-envision the business model itself. For the past 50 years, the major players in the U.S. spirits industry have been fully vertically integrated; some even down to their barrels and the farms where they grow their grain, and it’s only within somewhat recent history that Scotch brands originated from the distillery where they were made. However, If we look back 100-200 years, distilleries made the casks and sold them to warehousemen and independent grocers, who would then blend and bottle their signature whiskey product. Even in the U.S., we have seen what people have turned bulk-made bourbon from Kentucky and Indiana into. Whether it’s through cask finishing, barrel aging, or aging in different weather conditions, different products can be produced out of the same facility. As long as we are transparent about where things come from and how they are made, most consumers will embrace these products. While there are some businesses with the capital and resources needed to function at a fully-integrated level, there is also an entire realm of artistry and opportunity — and a place in the market — for startups and young brands that are not vertically integrated. Historically, they have been
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Pushing the Bounds of History and Tradition
called independent bottlers. These are artists and entrepreneurs who don’t always have the capital, the knowledge, or possibly the desire to necessarily run all of the equipment.
An Opportunity for Craft Distillers This presents a major opportunity for craft distillers, not only on the bottling side, but on the production side. For example, if a distillery is capable of making 1,000 barrels a year but only produces 500 for the branded business, they’re leaving a lot of cash on the table. If those 500 additional barrels were produced for another person or company, the business might be able to afford to make 100 more for itself. Some of the fastest-rising craft brands in the U.S. today are independent bottlers who are sourcing high-quality spirits from around the world and we have the opportunity to build on that as a craft industry — again, as long as we keep in mind the transparency. In my ten years of running Black Button Distilling, I have found that some
consumers love that we make every drop of our spirit from New York-grown ingredients in the heart of western New York. But I’ve also found consumers who didn’t care a bit and are more focused on the barrel aging, the technique, taste, or price point. The market is wide and diverse. Having the opportunity to fit these wide and diverse profiles is important, whether you’re a production distiller who can and should maximize their capacity to sell to these entrepreneurs, or you’re simply looking to expand your brand.
A Canvas / Hybrid Model We’re also starting to see a lot of hybrids in this model. For instance, you may have a distiller who makes their whiskey grain-to-glass, but they don’t have the facilities to make really great grain-neutral spirits in order to make a base of gin. By partnering with another institution to bring in that grain-neutral spirit, they can make a wonderful gin, amaro, or other liqueur without having to ferment and distill that original base. I once heard it said that most great artists don’t stretch their own canvas. I think this
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