Industry News

[cowdery]

John implied what no one else has mentioned. The brand and the plant do not necessarily go hand in hand. One could be sold and the other retained, or both could be sold, but to different buyers.

But Diageo might well want to keep Four Roses, because it is a successful international brand and strong in markets (like Europe) where Harper is not. It is less likely that they will want to keep the distillery, but possible. Because that plant is much smaller than Bernheim, and in a rural rather than urban location, it would be less costly to keep and operate than Bernheim. Also, Heaven Hill needed a distillery. No one really needs one now. Diageo needs to get its bourbon from somewhere. The Seagrams aging facility near Bardstown is also a lower cost operation than were the warehouses at Bernheim.

I'm not predicting, but I can see a logic to Diageo keeping both the brand and the plant.

--Chuck Cowdery

[Ken Weber]

Just wanted to let you folks know that Malt Advocate has just awarded its distillery of the year honor. No U.S. distillery has ever won the award, until now. The Buffalo Trace Distillery, in Franklin County, KY has been awarded this prestigious title. The publication noted that the distillery has launched several world class products during the last year, as well as spending millions of dollars upgrading the production facilities and production processes. Just thought I would let you know before the rest of the world hears it.

Ken

[cowdery]

Congratulations. I have the sense that BT is now run by people who actually understand and care about bourbon and its heritage, so good things are bound to follow.

--Chuck Cowdery

[kitzg]

Congratulations!

PS, I agree that B-F does not need real estate.

Greg

[Guest **DONOTDELETE**]

Ken,

Congrats on the award. It is well deserved and I am sure that George Stagg would be proud.

Mike Veach

[MashBill]

Congratulations Ken! I'll bet Brown-Forman (via L&G) will be gunning for that honor next year. What's the chances of Buffalo Trace winning two years in a row? Any more world class products we can look forward to next year? Sometimes the best defense is a strong offense.....

Bill

[bourbonmed]

Chuck,

Regarding your observation that no one really needs a distillery right now, what about Maker's Mark? I thought I read somewhere MM was pretty much at full capacity and having trouble finding enough water. Couldn't MM use more space?

Omar

[Guest **DONOTDELETE**]

Omar,

Some folks, and that would include Moi, believe that, within controllable limits, a master distiller can make his whiskey anywhere. Just ask Booker Noe (master distiller, Jim Beam Boston) and Baker Beam (master distiller, Jim Beam Clermont). Or at least anywhere within a region that would emcompass both Loretto and Lawrenceburg. And one could hardly ask for a more picturesque setting for Makers' second facility, especially given that they'd fix it up even more. I'd really be in favor of a move like that.

There are others, though, who would be utterly appalled at the suggestion that Maker's Mark would be the same product if made at both locations. And production of more Maker's Mark is the whole idea -- another brand won't do. They may have a point; I've heard the arguments and I'm sure we're about to do so again. Just because I don't agree with them doesn't mean I'm necessarily right, and I'm not the one betting the farm (literally) on it, as Bill Samuels and Allied Domecq would be. Also, I believe they've already committed to (and begun) the expansion of the present site. It's too bad they didn't get a chance to talk with you about it first, though; the more I think about your idea the better it sounds.

=John=

http://w3.one.net/~jeffelle/whiskey

[cowdery]

Maker's Mark buy Four Roses? It's an interesting thought. Allied Domecq, the parent company of Maker's Mark, was in the Seagram's sweepstakes but pulled out at the last minute. Presumably, they are banking on their Capt. Morgan agreement and possibly intend to leverage any negotiations surrounding that agreement with other prizes from the winner's basket. Four Roses may very well be on their wish list.

--Chuck Cowdery

[Ken Weber]

We have been experimenting with double cask bourbon, as well as aging in a second cask that once contained sherry. In response to a fellow bourbonian who asked if one of our bourbons was "oated", rather than "wheated", we will distill two new bourbons later this season using oats and rice. Give us about 8 to 10 years to get back to you on this one. We are going to take two of our bourbons that have won whiskey of the year distinctions and create single barrel versions of them.

We intend to stay busy. When you have the passion our people have for making bourbon, it is safe to say that we will continue to try and produce products that meet the tastes of our consumers. Several new products are introduced by marketers that simply clutter the shelves. We want to stay away from this mentality and only produce products that our consumers want, at the quality level they have come to expect.

Can we repeat? Over the last 10 years, this distinction has only been awarded 4 times. The other years, no one was deemed good enough to win. We sure intend to make Malt Advocate give us a good look next year.

Ken

[cowdery]

Bravo and hear hear!

--Chuck Cowdery