StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions
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31 StateWays n www.stateways.com n September/October 2015 WHISKEY / MOONSHINE Jack, as well as a commemorative bottle in 2016 marking the 150th anniversary of the registration of the distillery. Com- ing soon is the Sinatra Century, marking the star's 100th birthday on Dec. 12, a 100 proof expression set to be priced between $450-500 retail (the current Sinatra selection re- tails for about $200). For George Dickel Whisky, the introduction of rye and a buy-the-barrel program has helped, says Dickel national brand ambassador, Doug Kragel. "As the popularity of American whisky continues to grow, more consumers are being introduced to George Dickel and our hand-crafted approach to making whisky. George Dickel's Barrel Program allows on- and off- premise accounts to travel to Cascade Hollow and pick out their very own barrel of nine-year-old whisky." While anyone can make whiskey in Tennessee, the state legislature created a legal designation in 2013, requiring whiskey to be made from 51 percent corn, aged in new oak barrels in Tennessee and charcoal mellowed. Other types of whiskey can be produced in the state, but can't be marketed as Tennessee whiskey, with one exception: whiskey made in the state by Prichard's. Rye Whiskey In mid-summer, Heaven Hill released a reformulated and repackaged Pikesville Rye for national distribution, the lat- est milestone in the return of rye. The lone surviving major Maryland-style rye, it's now available nationally in a six- year-old, 110 proof iteration. "Pikesville is purely a reaction to the marketplace forces that have been creating an awful lot of demand," says Heaven Hill's spokesman Larry Kass. A lower proof version of the lower rye-content style spirit has been available for some time in the Maryland area, but with numerous cocktail aficionados clamoring for the product, Heaven Hill started planning as they were able to build up rye stocks. Heaven Hill, like other major distillers, was barely able to maintain distribution of their rye; in their case, Rittenhouse Rye, which has become one of the more popular brands. "But now we're at a point where we can expand our distri- bution of both. Those of us who have been looking at this category have clearly seen a passionate interest in traditional straight rye American whiskey, which was tapped out pretty quickly," Kass says. "The growth of rye whiskey has been phenomenal, given that as late as 2000, rye volumes were virtually nonexistent with only a handful of brands in the U.S. market," says DIS- CUS Chief Economist David Ozgo. "By 2014, there were over 100 brands, and the sheer numbers tell the story. While it still represents a small share of the overall American whis- key category, its growth is skyrocketing." Numerous niche brands have been entering the market, and lately the bigger suppliers have followed suit. Bulleit Rye has been said to bolster the brand significantly, and Russell's Reserve rye from Wild Turkey is in high demand. Jack Daniel's, which has issued an unaged and a "rested" rye, plans in the next year to issue a fully-aged rye. The halo effect of rye has even bled over to Bourbon: Beam Suntory this year released an Old Grand Dad Bottled in Bond with the label noting "high rye." The company also upgraded Jim Beam Rye to 90 proof. Dickel's rye has also done well. "After its launch in late 2012, George Dickel Rye continues to see solid traction and has become the number three best-selling rye in the country," Kragel says. There's still more room for rye to expand, says Beam Sun- tory national whiskey ambassador Adam Harris; specifically higher proof and single barrel expressions. "Those looking for more whiskey flavor and proof will find it with things like Knob Creek Rye, and there's an opportunity to get peo- ple to drink rye on the rocks. People love rye in cocktails, but we have yet to tip the scales so that people are drinking rye on the rocks." The Rise of Moonshine Moonshine has boomed due to the growth in flavored va- rieties and the two category leaders, Ole Smoky and Junior Johnson's Midnight Moon, are looking forward to main- taining and building share. Ole Smoky is about to launch its