JANUARY 25, 2019 | MODERN DISTILLERY AGE VOLUME 10 | NUMBER 3

Who Owns Montauk Booze? Michter’s Fort Nelson Distillery Special to Modern Distillery Age by by Robert A. Rivas, partner in the Los Angeles office of Ropers Majeski, [email protected] – www.rmkb.com Opening Celebration Alcoholic beverage brand owners, especially in the After years of restoration work, Michter’s Fort Nelson Distillery will have an start-up phase, are inevitably tasked with developing opening celebration on January 31 in Louisville. Public tours are scheduled brand names for their products, including line to begin on February 2 and can be booked at www.michters.com. Directly extensions. This involves developing a trademark that across the street from the Louisville Slugger Museum & Factory, Michter’s Fort is protectable under either the Lanham Act or common Nelson Distillery is the newest member of the Kentucky Bourbon Trail and is law. Due to the nature of the industry and certain down the block from the Official Starting Point of the Kentucky Bourbon Trail, regions being famous or well-known for production which is located in The Frazier History Museum. of wine, beer or spirits, or even being a location that is known for “partying” (i.e., consumption), brand owners many times desire to reference a region in one way or another. This can lead to numerous obstacles for securing a protectable trademark such as in the case of Stone Ale or Coolers and countless others in the industry, because geographic locations are not protectable, absent certain conditions which are described below. These issues are no better exemplified than in the case of the legal battle at the Patent and Trademark Office (USPTO) and courthouses over Montauk brands currently taking place between owners of wine, beer and spirits brands all using said geographic location as a brand name. continued on page 2 The Fort Nelson Building is an impressive example of cast iron and stone construction with Romanesque windows and a striking corner turret rising above its neighbors. First built in 1890, the building was in such disrepair Distilled Spirits Council when purchased by Michter’s in 2012, that it featured a partially collapsed Urges End of Retaliatory staircase and no floors. “It’s only fitting that a once abandoned, great American brand found its Tariffs on U.S. Spirits home in a once abandoned, great American building,” said Michter’s President The Distilled Spirits Council, in coordination with Joseph J. Magliocco. “The Fort Nelson Building is an architectural gem, and a diverse, ad hoc coalition of more than 45 business our team is so fortunate to have had the opportunity to bring it back to life and agricultural groups, has sent a letter to Commerce and make it a special place for everyone to visit.” Secretary Wilbur Ross and U.S. Trade Representative Saving the historic building required extensive work including the Robert Lighthizer requesting that the United States installation of 400,000 pounds of structural steel. work with Mexico and Canada to end retaliatory tariffs Michter’s Fort Nelson Distillery will operate with tours, tastings and a gift on U.S. goods as soon as possible. shop. Whiskey production will be conducted on the pot still and cypress “U.S. spirits have been a target of the trade wars, wood fermenter system from Michter’s Pennsylvania Distillery, which traces with American whiskey the only U.S. agricultural its history back to 1753. product subject to retaliatory tariffs by all of the “These stills will once again produce some incredibly special whiskey,” said retaliating trade partners,” said Distilled Spirits Council Michter’s Master Distiller Pamela Heilmann. Senior Vice President for International Affairs Christine The second floor of the building will feature The Bar at Fort Nelson. LoCascio. Cocktail historian and author David Wondrich consulted on the classic “Open markets created by trade agreements have cocktail list. In addition to cocktails designed by Wondrich, the bar program greatly benefited the U.S. spirits industry, American will incorporate modern creations by Head Bartender Sevan Araneda, former farmers and our consumers. We urge continued General Manager of San Francisco’s Bourbon & Branch, and Bar Manager dialogue with Mexico and Canada to secure the continued on page 2 continued on page 2 be a known location and the booze not the deal to indemnify the buyer from these Michter’s Fort Nelson originate from said location, while the types of claims. Distillery Opening consumers believe it does. While it is cool to be a “Cool Kid” with a continued from page 1 There is currently a bottleneck of liquor brand in a party town, it is not cool Dante Wheat, former Bar Manager at trademark applications and proceedings at to be on the hot seat of a witness stand in the USPTO for Montauk as a trademark for a courtroom. Louisville’s Butchertown Social. return to page 1 The Bar will feature custom glassware from a litany of wine, beer and spirits producers. U.K. producer John Jenkins and an advanced To make matters even more complicated, a ice program with machines from top global trademark does not have to be registered Distilled Spirits equipment purveyors, including Clinebell, with the USPTO. A trademark owner can Council Urges End of Hoshizaki and Scotsman. The bar will serve have what is referred to as common law as a resource for the local Kentuckiana bar trademark rights that are not registered with Retaliatory Tariffs on community and host educational seminars the USPTO and limited to the geographic from industry professionals through its Fort area where the product is sold, sparking U.S. Spirits continued from page 1 Nelson Fellows program. a firestorm of cease and desist letters and prompt removal of the retaliatory tariffs,” In addition to Michter’s Fort Nelson letters of protest between producers, LoCascio concluded. Distillery, the company owns Michter’s including those that have not registered The ad hoc coalition is urging the Shively Distillery in Louisville as well Montauk or have been rejected by the USPTO Administration to take all necessary steps as a 145-acre farm and operations in for prior filings or office action rejections for to resolve this matter so that zero-tariff Springfield, Ky. geographic issues. North American trade can resume, and so return to page 1 The typical strategy to achieve secondary it can turn attention to securing prompt meaning is to spend a lot of resources to Congressional approval of the U.S. – Mexico Who Owns Montauk create the secondary meaning and grow – Canada Agreement (USMCA). the brand accordingly. However, the brand The full text of the letter can be Booze? continued from page 1 has to be used continuously and exclusively. downloaded here. During the days of Prohibition, Montauk, With so many brands utilizing Montauk”since return to page 1 N.Y., was a hub for bootlegging. Montauk at least 2012, the “Cool Kid” legal battle remained a small, sleepy fishing village at for Montauk will probably not end WSWA Women’s the remote end of Long Island, while the anytime soon. rest of the Hamptons evolved into a resort Most of the brands are start-ups looking Leadership Council area and residential area for the rich and for outside capital and investment and/or famous. Almost one decade ago, Montauk are dreaming of a “Casamigos” payday in the Elects 2019-2020 started to become a high-end playground near future. Unfortunately for these brands, Advisory Board and for the trendy and boho-chic, including when lawyers perform due diligence on a models, hedge-funders, investment bankers brand they have a checklist, and one of the Officers and entertainment industry types. The “Cool first boxes to be checked off is for Trademark The Wine & Spirits Wholesalers of America Kids” of Montauk have decided to cash in on Registrations and Serial Numbers for the (WSWA) Women’s Leadership Council (WLC) the developing reputation of Montauk and registrations, and they do not want to see have elected the group’s 2019 Advisory several brands of wine, beer and spirits have a blank exhibit list of intellectual property Board led by Chairman Philana Bouvier of sprung up claiming ownership of the word ownership. They are, after all, investing in Young’s Market Company and Vice Chairman “Montauk” for trademark purposes. or buying a brand (i.e., trademark). If it is Jessica Cyr of Martignetti Companies, both of Today, there are approximately twenty or blank, the investor or buyer will walk away whom will serve two-year terms. The board so alcoholic beverage brands utilizing the or slash the purchase price since there is no also welcomed two new members, Amy brand name “Montauk” as a name in one clear intellectual property, and they may Barriault of Central Distributors in Maine, way or another. And, the field continues to be investing in or buying an expensive and and Shell Cameron of Central Distributors grow every day and most, if not all, of the lengthy lawsuit instead. in Arkansas. brands are not produced in Montauk, which So, before embarking on developing “From two wildly successful sold-out has shunned liquor production due to its a brand, it is imperative that the brand leadership development conferences to a bootlegging history. is protectable and registered with the widely-attended reception that has become Enter the USPTO. Geographic names USPTO. This may cost some resources at the a staple at the WSWA Annual Convention such as “Montauk” cannot be protectable beginning of the venture, but it is far less and Exposition, the WLC has had a real and trademarks absent a showing of secondary expensive than developing a brand that lasting impact on the nation’s wholesaler meaning. In trademark-speak, this means does not exist on paper and having to fight community,” said WSWA President and that the consumer associates the name it out in the courts or USPTO. This will also CEO Michelle Korsmo. “While providing with a single source who has used the name prevent potential lawsuits from investors a forum for networking and professional continuously and exclusively. Moreover, the or buyers, especially when purchase price development, the group has also found ways geographic name cannot be misdescriptive funds are deposited into escrow for a long to celebrate the achievements of women in in that the name such as “Montauk” cannot period of time, including after closing of the industry with the WLC Icon Award and continued on page 3

2 JANUARY 25, 2019 | MODERN DISTILLERY AGE Ready-to-Drink (RTD) cocktail segments,” WSWA Women’s according to a company statement. Distilled Spirits Leadership Council It is currently expected that the co- Council Supports continued from page 2 packing business will operate under the the quarterly WLC Spotlight. I am confident name Craft Canning + Bottling. Ending Dry Counties in under the leadership of Philana and Jessica, along with the rest of the advisory board, the Virginia WLC will continue to amplify the expertise of The Distilled Spirits Council has women in the wholesale tier.” registered strong support for legislation that “I am excited to lead this impressive would allow alcohol sales in all jurisdictions group of women in fulfilling the WLC’s of Virginia. mission over the next two years,” said Virginia. SB 1110, sponsored by Virginia WLC Chairman Philana Bouvier. “From the Senator Bryce Reeves, was reported out of start, this group was formed to serve an the Senate’s Committee on Rehabilitation audience in WSWA’s member companies and Social Services. The legislation would that has been growing at an exponential make the entire state of Virginia wet, rate. With the environment we have created, requiring localities to hold a referendum we are enhancing the talent that exists to go dry. Virginia has nine remaining dry in the wholesale tier and continuing to counties — Bland, Buchanan, Charlotte, encourage and empower women to aim for Craig, Grayson, Highland, Lee, Patrick and Russell — with portions of 31 counties leadership roles.” The aggregate consideration of currently dry. Other advisory board members include $5.2 million paid by Eastside to CC+B “Virginia’s Distilled Spirit industry is Heather Alper of Southern Glazer’s Wine & shareholders in the merger was calculated expanding, and our localities need to keep Spirits, Megan Ross Laccino of Great Lakes on a 4.5x multiple of CC+B’s 2018 unaudited up with that growth,” said Senator Bryce Wine & Spirits, Stacy Gabel of Republic and estimated adjusted EBITDA of Reeves. “As SB 1110 moves on to the Senate National Distributing Company, Lacey $1.2 million. floor, I’m hopeful that my colleagues will Sadoff of Badger Liquor Company, Monica “We are excited to bring the operations recognize the importance of this legislation Chaplin of Southern Glazer’s Wine & Spirits of Craft Canning + Bottling into the Eastside and how it helps create a stronger, more and Hillary Wirtz of Breakthru Beverage. family,” said Eastside Chairman and CEO suitable environment for Virginia distillers The WSWA Women’s Leadership Council Grover Wickersham. “CC+B’s team has a and their businesses.” is comprised of leaders in the wholesale culture of hard work and accomplishment, continued on page 4 tier of the U.S. Beverage alcohol industry. having built a fast-growing business from Its primary mission is to help foster scratch, with negligible outside capital.” relationships between members, as well CC+B has had profitable double-digit as industry leaders within the three-tier growth since beginning operations six years system, advance women in the industry and ago and has become a partner to beer, wine provide a platform for the exchange of ideas and cider producers in the Pacific Northwest and knowledge with peers. and Colorado, with finished production of 203-971-8710 The WLC Advisory Board will meet more than 17 million cans in 2018. [email protected] January 24-25 in , D.C., to lay out “With Craft’s operating in mobile canning www.distilleryage.com the group’s priorities for this year and begin and bottling, and Eastside having a well- EDITORIAL STAFF work planning its 2019 events. equipped fixed facility in Portland, we can Publisher/Editor: Gregg Glaser leverage the overlapping capabilities of Contributing Editor: Peter V. K. Reid Eastside Distilling both,” said CC+B chairman Owen Lingley. Contributing Editor: Michael Anstendig “Up till now, all our business has come in just Copy Editor: Roberts Blackwood Acquires Craft by word of mouth. It will be exciting to add ADVERTISING marketing capability, as well as equipment, [email protected] Canning + Bottling and reach out for new business in high Eastside Distilling in Portland, Ore., has growth areas like wine canning, cocktail SUBSCRIPTIONS acquired by merger Portland-based Craft RTDs and CBD drinks.” $195.oo a year for ~45 issues Canning + Bottling, a leading provider of [email protected] mobile canning and bottling services in MAILING ADDRESS Oregon, Washington and Colorado. 228 Silvermine Avenue “Craft Canning + Bottling will combine Norwalk, CT 06850-2032 operations with Eastside’s Mother Lode All content Copyright © Modern co-packing subsidiary, positioning the Distillery Age, 2019 — Copies may not combined business unit to be a preeminent be sent to others & issues may not be local provider to the fast-growing wine and posted to websites.

3 JANUARY 25, 2019 | MODERN DISTILLERY AGE “The research is clear — parents and Worldwide Libations, with operations Distilled Spirits other adults are the most influential located just outside of Manhattan, began factors in a youth’s decision whether or importing The Bitter Truth’s Tiki Lovers Rum Council Supports not to drink alcohol, not advertising. The portfolio in early 2018, when the brand was Ending Dry Counties in assertion that alcohol advertising causes first released in the U.S. The company also underage drinking is based on highly- represents a carefully curated portfolio of Virginia continued from page 3 flawed advocacy-driven ‘research’ that has craft spirits and wines. “One hundred years after Prohibition, it is been refuted by advertising experts in the In February, The Bitter Truth will bring time to remove the last remaining Blue Laws scientific community.” with it an extensive line of all-natural bitters in Virginia,” said Distilled Spirits Council Vice Baltimore City, which in 1994 became and cocktail waters, a range of premium President of State Government Relations the first municipality to enact an outdoor liqueurs, Pink and its non-potable line of David Wojna. ”We urge Virginia lawmakers alcohol advertising ban, joins a number all-natural bitters called Berg & Hauck to the to continue to provide consumers with the of cities in striking down prohibitions Worldwide Libations portfolio. convenience they demand and build upon on alcohol advertisements. Since 2012, “Our entire range of products are meant the strong business environment they have Charlotte, Chicago, Washington, D.C., and to work together and complement one created for Virginia’s distilled spirits industry. Boston have all repealed their public transit another, so it makes sense for all of our brands This measure will also allow the Virginia alcohol advertising bans. to be represented by one importer,” said ABC to expand its footprint and raise much Alexander Hauck, co-founder of The Bitter needed revenue for the Commonwealth.” The Bitter Truth Goes Truth. “With Worldwide Libations’ intimate There are currently 61 active distilleries in knowledge of all channels of the market, Virginia, with another 11 pending licenses. with Worldwide their innovative approach to marketing and a proven track record of successful brand Libations partnerships, we are convinced they are Distilled Spirits The Bitter Truth, German makers of the perfect custodians for our products in Council-Led Coalition bitters, liqueurs and spirits, has signed an the U.S.” exclusive partnership with New-Jersey based “Alex and Stephan are true innovators Results in Successful import company Worldwide Libations, in the bitters category and in the drinks led by industry veterans Dan Lasner and industry as a whole, and we couldn’t be Repeal of Baltimore Mark Tucker. happier to be working with them so closely City Alcohol Billboard again,” added Dan Lasner. “We’ve had great success with the Tiki Lover’s range and are Ban thrilled to be bringing the entire portfolio A 25-year-old ban on alcohol billboards in home to our family of brands.” Baltimore City has been repealed following an ordinance passed by the City Council and was signed into law late December by Mayor Sailor Jerry Spiced Catherine Pugh, according to the Distilled Rum’s Martin Guitar Spirits Council. Sailor Jerry Spiced Rum has partnered Under the new sign ordinance, outdoor with C.F. Martin & Co. to release two Ink & alcohol advertising will be permitted Wood limited edition guitars (~$19,999). on any outdoor stationary location Worldwide Libations presently imports except within 500 linear feet of places of Tiki Lover’s, a range of blended Caribbean worship, elementary or secondary schools rums created by The Bitter Truth founders or playgrounds. Alexander Hauck and Stephan Berg. Now, The Council, which led a coalition with the addition of The Bitter Truth bitters, including the Beer Institute, Clear Channel liqueurs and spirits, and the inclusion of Communications and MillerCoors, the brand’s non-potable bitters Berg & submitted comments to the City raising Hauck, the entire portfolio will reside with serious constitutional commercial free one importer. speech concerns with the billboard “We are confident that this transition ban in light of several recent Supreme to Worldwide Libations will significantly L-R: Scott Sasser of C.F. Martin & Co. and Sailor Jerry boost the development of The Bitter Truth, Spiced Rum Ambassador, Daniel “Gravy” Thomas Court decisions. showcase the Ink & Wood special edition guitar series. “We commend the Mayor and the City Berg & Hauck and Tiki Lovers brands in the Council for striking Baltimore’s misguided U.S., a market of paramount importance to With more than 50 hours of work time billboard ban ordinance,” said Distilled us now and a critical part of our long-term dedicated to each individual instrument, the Spirits Council Vice President Jay Hibbard, goals,” said Stephan Berg, co-founder of guitars, “Homeward Bound” and “True Love,” who led the coalition. The Bitter Truth. feature imagery from Norman “Sailor Jerry” Collins, and the craftsmanship known to C.F. Martin & Co.

4 JANUARY 25, 2019 | MODERN DISTILLERY AGE More than 1,100 original cocktail Canadian Whisky Heaven Hill’s First recipes were submitted online nationwide beginning September 15, 2018. Preliminary Awards Finalist for 2019 entries required two original cocktail recipes, The best whisky in Canada is an all-rye one rendition of a classic recipe and one whisky distilled 22 years ago at Forty Creek “Bartender of the relating to an inspiration, along with a short Distillery in Grimsby, Ontario. Year” description of how the cocktail represents a After blind tastings of over 100 whiskies, Vay Su, bartender at Republique in Los deep inspiration to their life. ten independent whisky experts have Angeles, is the Heaven Hill Brands and declared Forty Creek 22-year-old Rye as Liquor.com Los Angeles finalist for the 2019 Canadian Whisky of the Year in the ninth Bartender of the Year Competition. He won A Drinkable Feast: A annual Canadian Whisky Awards. first place, $1,000 and a trip to the finals Cocktail Companion at Half Mile Farm in Highlands, N.C., from June 17-20. to 1920s Paris Philip Greene has written A Drinkable Feast: A Cocktail Companion to 1920s Paris (TarcherPerigee; 288 pages, hardcover; $18).

Forty Creek distiller Bill Ashburn (center) accepts the award for Whisky of the Year from head judge and awards founder Davin de Kergommeaux (L), and co-host Heather Leary (R). CNW Group/Canadian Whisky Awards Held each January at the Hotel Grand Pacific in Victoria, B.C., as part of the Victoria Whisky Festival, the Canadian Whisky Awards Vay Su, bartender at Republique in recognize the best whiskies produced Los Angeles in Canada. Robin Wolf of The Hatch Rotisserie & Bar Awards founder Davin de Kergommeaux in Paso Robles, Calif., won second place and described Forty Creek 22 year-old Rye as: $500. Six semifinalists competed regionally in Featuring more than fifty cocktails “A huge, yet elegant rye whisky, just bursting Los Angeles on January 14 at The Normandie recipes from 1920s Paris, the book explores with complex flavors.” Club. Bartenders competed in three rounds, who was drinking these popular cocktails Other top accolades went to whiskies the first two featuring a classic cocktail and — Hemingway, the Fitzgeralds, Chanel, from JP Wiser’s, Canadian Club, Crown Royal one “inspired cocktail” from their preliminary Dalí and many more famous names of this and Gooderham and Worts. Forty Creek submission. For the final round, bartenders era — where the drinks were made popular founder John K. Hall was announced as the created a custom drink for a fictional bar and, most importantly, how readers can first member of the Canadian Whisky Hall of menu using a minimum of 1.5 ounces of at make these drinks for themselves from the Fame, while Dr. Don Livermore was named least one Heaven Hill brand not previously original recipes. Blender of the Year. featured in one of their cocktails, including Greene is one of the founders of the “Every year the whiskies are just that Domaine de Canton French Ginger Liqueur, Museum of the American Cocktail in New much better than the year before,” said Elijah Craig Small Batch Bourbon, PAMA Orleans and author of To Have and Have de Kergommeaux as he revealed the Pomegranate Liqueur and Rittenhouse Rye Another: A Hemingway Cocktail Companion. winners. “Top whiskies from five or six years Whisky, as well as Dubonnet Rouge Aperitif, He’s a speaker about cocktail history, a ago might earn a silver medal today. The Sacred Bond Brandy or Lunazul Tequila. mixology consultant and a regular cocktail competition is that intense.” The judges were Julian Cox, Director columnist for The Daily Beast. The independent judging panel served of Bar Operations and Development up some surprise honors to relative at Tartine; Lynn House, National Brand newcomers such as Saskatchewan’s Educator for Heaven Hill Brands; and Last Mountain distillery, which took first Jeffrey Morgenthaler, Bar Manager of Clyde place as Microdistillery of the Year. Common & Pépé Le Moko. They judged Full results are available at the semifinalists’ cocktails and chose one www.canadianwhisky.org finalist based on highest scores. Contestant skills and cocktails were scored on flavor, appearance, presentation, technical skills, use of sponsor brands and adherence to judges’ guidelines.

5 JANUARY 25, 2019 | MODERN DISTILLERY AGE Top Cocktail Trends of 2019 Southern Glazer’s Wine & Spirits has identified four major cocktail flavor and ingredient trends heading into 2019, following an extensive tasting tour across the U.S. led by a team of national sales staff and mixologists. The team visited 80 of the top mixology and restaurant bars in New York, Los Angeles, Chicago, City, Mo., and Dallas. After tasting nearly 400 cocktails across these markets, five key trends driving innovation in the cocktail category were revealed. Toasting to Texture Cocktails with proper texture result in drinks that feel substantial. Ice is one way to deliver the correct texture and flavor in a cocktail, in addition to providing a visual impact. For example, large blocks of ice minimize dilution and can also be branded or stamped. Medium-sized cubes continue to be used for a variety of all-purpose cocktails, and shaved or nugget ice is being used in large part to often dilute boozy, tiki-styled cocktails. Finally, blended cocktails continue to grow in popularity. Beyond ice, texture can also be modified by using egg whites to not only add a foam presentation, but also a soft texture to a variety of citrus-forward cocktails. Drinking Your Veggies While consumers have long embraced healthy green juicing and smoothies, vegetable flavors such as cucumber, celery, peppers and peas are now being used to add a new twist to familiar cocktails. Bartenders are also using spirits that have vegetal characteristics, such as Green Chartreuse or its milder, slightly sweeter, lower-alcohol cousin, Yellow Chartreuse. Aquavit, a spirit often infused with caraway and dill, is also being used to add vegetal flavor. Using vegetables and vegetal spirit ingredients, such as bell peppers, beets and snap peas, adds fresh, bright flavors and imparts unique, vibrant colors. It’s Good to Be Bitters No longer just to enjoy after dinner, amaro and bitters are being used more and more due to their ability to tone down and balance drinks that are too tart or sweet. One example is Aperol — a bitter orange liqueur that adds astringency, bitterness and also a wonderful color. Cynar is an artichoke-based bittersweet liqueur known for its versatility and distinctive flavor; its taste is enriched by an infusion of 13 herbs and plants. The name of the drink derives from the botanical name for artichoke, as artichoke leaves lend the distinctive flavor. Angostura bitters, traditionally used as an accent ingredient, is also making its way to the forefront as a major ingredient in cocktails. Wine Lovers Rejoice Wines are great on their own, but they also lend themselves well to cocktail development. When used in cocktails, wines reduce the need to add excessive amounts of alcohol (that can make a drink too boozy) and can add a softer sweetness than syrups. These include fortified wines such as ports and vermouths, subtle nutty or creamy sherries, crisp and clean red and white wines and sparkling wines for bubbly texture. And red wine, traditionally just for sangria, is being used to create colorful, flavorful cocktails at some of the country’s most innovative watering holes. The Bartender Barista Coffee and tea as cocktail ingredients are being leveraged for their smoothness, earthiness, subtle smokiness and other flavor tones, as well as for their strong backbone, which stands up to more assertive spirits. While cold brew primarily delivers a singular flavor profile, teas from around the world offer versatility and more nuanced flavors. These range from the subtle and delicate aromas of white tea, slight bitterness of many black teas (or subtle smokiness of lapsang souchong), roasty notes from green teas like houjicha, soft, grassy flavors in matcha tea or the range of flavors and aromas of oolong tea. Then there are the incredibly diverse flavors extracted from herbal and floral teas, including hibiscus or chamomile. “What we know is that consumers now expect more complex and layered flavors in cocktails,” said Brian Masilionis, Certified Specialist of Wine and Spirits from the Society of Wine Educators, and Director of National Accounts, On-Premise, for Southern Glazer’s Wine & Spirits, who led the research effort. “However, while they want to be surprised and delighted, they still want to stay in their comfort zone. This explains why some of the most successful on-premise programs start with a classic cocktail as a base, then use an ever-expanding range of ingredients to make the drink more interesting. The results can keep an on-premise beverage program on the leading edge, while also staying true to the retail concept.” Atlas Holdings Acquires Saxco International Atlas Holdings LLC has acquired Saxco International, a leading North American distributor of rigid packaging to the spirits, wine, craft beer and food markets. Saxco offers a broad range of products and services including glass, metal and plastic containers, capsules, closures, custom packaging and mold development. Saxco also offers brand and packaging design plus warehouse and logistics management. Terms of the transaction were not disclosed. Saxco was founded in 1936 and led for many years by Herb and Keith Sachs before being acquired by The Sterling Group in 2010. Today, the company has a customer base of more than 5,000 distillers, wine makers, brewers and specialty food manufacturers across North America. “We are extremely pleased to welcome Saxco to the Atlas family of distribution and manufacturing businesses,” said Sam Astor, partner at Atlas Holdings. “Saxco’s proud heritage and sector expertise position the company well for sustained growth, particularly as specialty brands and craft producers gain market share across all beverage categories. There are eight times as many breweries in the U.S. as there were a decade ago, and seven times as many distilleries. The number of wineries during this period has also continued to grow steadily. Saxco’s leadership team and dedicated workforce will now have the added capital and support to meet this growing demand by delivering value- added, superior customer service.”

6 JANUARY 25, 2019 | MODERN DISTILLERY AGE Barrell Craft Spirits Barrell Craft Spirits in Kentucky has released its Barrell Craft Spirits line.

Barrell Craft Spirits Bourbon (52.55% ABV) is a blend of 15-year-old straight Pusser’s 15-Year Old Balcones Single bourbon whiskeys. Barrell Craft Spirits Whiskey (55.6%) is a 25-year-old American Rum Malt Rum Cask whiskey finished in Sercial Madeira barrels. Pusser’s Rum and importer Shaw Ross Finish & Texas Rye Barrell Craft Spirits Rum (62.1%) is a blend International have released Pusser’s Rum of 13- to 21-year-old vintage rum from True Aged 15 Years (40% ABV). Cask Strength Barbados, Jamaica and Guyana. In February and March, Balcones A 750-ml bottle of each sells for Distillery in Texas will release 2019 editions about $250. of Single Malt Rum Cask Finish (64.2% ABV) Calvados Boulard and Texas Rye Cask Strength (~62.3%). V.S.O.P. Bourbon Cask Finish Calvados Boulard and importer Palm Bay International have released V.S.O.P. Bourbon Cask Finish (44% ABV), the first expression in Boulard’s new 12 Barrel Collection, showcasing innovation in the spirit’s finish. This release is a blend of different Calvados Pays d’Auge aged for This is a re-release of this 15-year- a minimum of four years and finished in old rum, which has been reformulated, bourbon barrels. repacked and is available in limited supply. The column-stilled component of the blend previously supplied by Trinidad Texas Single Malt Rum Cask Finish Distillers was no longer available to uses select barrels of Balcones Single Malt Pusser’s when Trinidad Distillers made the Whisky, which are finished in barrels that decision to stop exporting its aged rum previously held Balcones Texas Rum. stocks. Pusser’s replaced this component A 750-ml bottle of each sells for about with a similar rum from Guyana. $80, and both will be available only at A 750-ml bottle sells for about $80-$85, the distillery. and Pusser’s is available nationally. Only 3,000 cases were made for worldwide distribution (1,000 for the U.S., 1,000 for the U.K. and 1,000 for the rest of Europe).

A 750-ml bottle sells for about $55, and only 500 cases are available globally, half of which are allocated to the U.S.

7 JANUARY 25, 2019 | MODERN DISTILLERY AGE Montgomery Scott Cocktail Squad Zander Guy – Cocktail Squad in Colorado has released Scotch Blended four canned, RTD cocktails: Gin and Tonic, Incoming Chair-Elect, Margarita, Soda and Greyhound NABCA Board Silver Screen Bottling Co. has released (all 10% ABV and gluten-free). A. D. “Zander” Guy, Jr., Chairman of the Montgomery Scott Scotch Blended Scotch North Carolina Alcoholic Beverage Control Whisky (40% ABV), the latest in a line of Commission, has been voted Chair-Elect Star Trek-branded spirits. to the NABCA Board of Directors. He’ll assume responsibilities of this position in May when current Chair-Elect Dan Noble, Director of the Wyoming Department of Revenue, becomes NABCA Chairman of the Board.

A four-pack of 12-ounce cans sells for $20-$24, depending on the flavor, and they are initially available in Colorado. The whisky is named after the character Montgomery Scott, who served aboard 11 different ships during the course of Steve Pine – his career, but is best known as Chief Engineer for the Constitution-class Starship Managing Director, Zander Guy Enterprise during a five-year mission CH Distillery Guy was appointed by Governor Roy of deep space exploration under the Cooper to serve as Chairman of the North CH Distillery has appointed Steve Pine as command of Captain James T. Kirk. Born Carolina Alcoholic Beverage Control Managing Director - Sales and Marketing. in Aberdeen, Scotland on Earth in 2222, he Commission in March 2017. He served He has 27 years of industry experience was known to his shipmates and friends as previously on the Commission from 2009 including 20 years with Glazer’s and over “Scotty.” to 2013 and was Chairman from February three years with Deep Eddy Vodka. A 750-ml bottle sells for about $50. 2012 to February 2013. One of Pine’s initial priorities at CH was Previous releases were James T. Kirk For more than 25 years, he held elected adding a new Director of Marketing, Dan Bourbon, James T. Kirk Bourbon Reserve office in municipal government. He’s the Janes, who worked with Pine at Deep Eddy and Ten-Forward Vodka. Additional former Mayor of Surf City and is a member Vodka. He’s now focusing on the product lines will be added in the future. of the Cape Fear Community College Board market for 2019, and he’s set up a sales of Trustees. He’s also past President of the team that includes Miana DeGardeyn as Neuse River Council of Governments, National Sales Manager. past member of the Local Government Besides it own spirits, CH acquired Advocacy Council and former Mayor and Jeppson’s Malört Liqueur last year and Councilman of the City of Jacksonville. will begin distilling it at its Chicago-based Guy served on the North Carolina distillery early this year. Banking Commission under Governors Hunt, Martin, Easley and Perdue. In 2011, he sold his real estate company and retired after 41 years in the business.

8 JANUARY 25, 2019 | MODERN DISTILLERY AGE Total Spirits Categories — Current 52 Weeks Ending Dec. 30, 2018 Total U.S. Multi-Outlet with C-Store (Supermarkets, Drugstores, Gas/C-Stores, Mass Market Retailers, Military Commissaries and Select Club & Dollar Retail Chains. Stats from SymphonyIRI Group, a Chicago-based market research fim. Dollar Sales Dollar Share of Spirits Case Sales Current %Change vs Current Change vs Current %Change vs YA YA YA SPIRITS $7,274,593,228 5.9% 100.00 0.00 55,086,226 4.3% WHISKEY $2,473,264,366 7.3% 34.00 0.46 12,821,545 5.0% VODKA $2,032,706,907 4.3% 27.94 -0.41 16,945,105 2.8% RUM $625,594,800 -0.1% 8.60 -0.51 4,934,459 0.0% TEQUILA $508,196,096 11.5% 6.99 0.36 2,278,814 9.8% CORDIALS $486,143,016 3.5% 6.68 -0.15 2,510,650 1.3% PREMIXED COCKTAILS $348,727,300 21.3% 4.79 0.61 5,942,401 21.0% BRANDY/ $324,967,364 3.5% 4.47 -0.10 1,542,387 -0.3% NON-ALCOHOLIC MIXERS $276,767,627 2.6% 3.80 -0.12 6,783,241 -0.9% GIN $198,225,752 1.0% 2.72 -0.13 1,327,623 -0.8% Case Share of Spirits Price Per Case Price per 750 ml Volume Current Change vs Current Change vs Current Change vs YA YA YA SPIRITS 100.00 0.00 $132.06 $1.97 $11.00 $0.16 WHISKEY 23.28 0.16 $192.90 $4.17 $16.07 $0.35 VODKA 30.76 -0.44 $119.96 $1.76 $10.00 $0.15 RUM 8.96 -0.38 $126.78 -$0.14 $10.57 -$0.01 TEQUILA 4.14 0.21 $223.01 $3.49 $18.58 $0.29 CORDIALS 4.56 -0.13 $193.63 $4.13 $16.14 $0.34 PREMIXED COCKTAILS 10.79 1.49 $58.68 $0.15 $4.89 $0.01 BRANDY/COGNAC 2.80 -0.13 $210.69 $7.82 $17.56 $0.65 NON-ALCOHOLIC MIXERS 12.31 -0.64 $40.80 $1.41 $3.40 $0.12 GIN 2.41 -0.12 $149.31 $2.67 $12.44 $0.22

Single Malt: A Guide to the Whiskies of Scotland: Includes Profiles, Ratings, and Tasting Notes for More Than 330 Expressions Clay Risen has written Single Malt: A Guide to the Whiskies of Scotland: Includes Profiles, Ratings, and Tasting Notes for More Than 330 Expressions (Quercus, 316 pages, hardcover, $32.99). A follow-up to his book American Whiskey, Bourbon & Rye: A Guide to the Nation’s Favorite Spirit, Risen’s new book is an introduction to the history, science, and diversity of malted whisky, as well as a practical drinker’s guide to buying and enjoying hundreds of the greatest examples. The book includes maps of essential whisky regions of Scotland, profiles of each of the distillers and photographs of the bottles and tasting notes for each of the most widely available expressions compiled from tasting sessions conducted by a panel of leading whisky experts. Selected from more than 100 active distilleries in Scotland, the 330 expressions featured in this book provide a curated yet comprehensive primer of single-malt whiskies. Risen is Deputy Op-Ed editor at The New York Times, where he has written extensively on whiskey, rum and other spirits. He has also written for Smithsonian, The Atlantic and The Washington Post.

9 JANUARY 25, 2019 | MODERN DISTILLERY AGE Modern Distillery Age Tasting Panel In this week’s tasting panel, we have notes on a tequila, an Irish whiskey and two bourbons. All spirits are tasted blind. The panelists know only the style and ABV. The notes are a of the panelists’ comments. The panelists vary with each panel but often include: Tom Jensen (Millstone Spirits), Dave Schmier (Producer of the Independent Spirits Expo), David Talbot (Ultimate Beverage Challenge), John Henry (El Buho Mezcal), John Heffernan (Senior Master of Whisky), Renzo Kian-Kubota (Harry’s Wine & Liquor Market), Olie Berlic (spirits & wine sales), Frank Whitman (food & drinks writer), Linda Kavanagh (MaxEx PR), Paul Zocco (Zok’s Homebrewing & Supplies), Ernie Adamo (spirits lover), Steve DeFrank (spirits lover), Dave Sokoloff (spirits lover), Phil Simpson (Asbury Park Distilling), Thomas Henry Strenk (drinks writer), Melissa Dowling (Editor of Cheers), Kyle Swartz (Managing Editor of Beverage Dynamics, Cheers & StateWays), Pete Reid (Publisher/Editor of Modern Brewery Age), Michael Anstendig (Modern Distillery Age) and Gregg Glaser (Publisher/Editor of Modern Distillery Age).

Rock N Roll Cristalino Tequila, 40% Distilled in Jalisco, Mexico, ~$50 imported by Rock N Roll Imports; an añejo tequila aged for two to three years in French oak & then filtered until clear Egan’s Irish Whiskey Fortitude, 46% Clear with an aroma of sweet agave, green Eagan’s Distillery, Tullamore, Ireland, ~$50 vegetables, herbs and flint. Light agave imported by Intrepid Spirits; aged sweetness in the taste with spices and exclusively in Pedro Ximénez casks alcohol warmth. A medium body. Finishes Light amber with an aroma of butterscotch, with spices and alcohol warmth. toffee, tobacco and cloves. In the taste are sherry, dried fruits, chocolate, almonds and alcohol warmth. A medium body. Finishes with fruitiness, spices and alcohol warmth.

Basil Hayden’s 10 Year Old Bourbon, 40% Basil Hayden’s Distillery, Clermont, Ky., ~$60 a high-rye bourbon aged longer than usual McKenzie Bottled-in-Bond Golden amber with an aroma of oak, char, vanilla, cherries, almonds and rye spiciness. Wheated Bourbon, 50% Sweet in the taste with caramel, maple, corn, Finger Lakes Distilling, Burdett, N.Y., ~$43 oak and spices. A medium body. Finishes distilled from local corn (70%), red winter with sweetness, spices, some char, dryness wheat (20%) & malted barley (10%) and alcohol warmth. Light amber with an aroma of oak, sweetness, must and dried fruits (figs, prunes and cherries). In the taste are sweetness, fruits, soft oak and alcohol warmth. A full, chewy body. Finishes with sweetness, spices and alcohol warmth.

The Modern Distillery Age Tasting Panel meets once or twice a month. Samples are sent by distillers and importers and are tasted blind. Samples can be sent to: Modern Distillery Age 228 Silvermine Avenue Norwalk, CT 06850

10 JANUARY 25, 2019 | MODERN DISTILLERY AGE Tasting Events & Competitions

ULTIMATE SPIRITS CHALLENGE 2019

New York City — June 2019 New Orleans — July 2019 Chicago — October 2019 FULL DETAILS AND ENTRY FORM

14 Cities — March-November each year www.singlemaltextravaganza.com

www.breweryage.com Covering the beer business since 1933 The sister publication to Modern Distillery Age

11 JANUARY 25, 2019 | MODERN DISTILLERY AGE