In our September/October 2022 concern, Eric Zandona, director of spirits data for the American Distilling Institute (ADI), spoke with author Susannah Skiver Barton about how the standard of craft spirits has developed through the years and the way that’s mirrored within the inflow of newcomers profitable medals within the ADI spirit competitors. We talked with Zandona to be taught extra about the place he thinks the craft spirits trade is now heading, which craft distillers are value watching, and which American craft whiskeys are his present favorites. This interview has been edited and condensed.
The place do you see the craft spirits trade heading?
The trade, by way of new entrants, continues to be fairly sturdy. Even a few years in the past from a few of our projections modeling, we have been anticipating that the craft distillery increase is usually following comparable developments in wine and craft beer that occurred many years earlier than.
We’re at this inflection level the place it’s nonetheless rising quickly, however a few of that development might be going to decelerate. Among the present financial circumstances are most likely going to contribute to among the slowdown. However so far as I can inform, new manufacturers are nonetheless within the technique of coming into, new distilleries are within the technique of opening. And clearly, bigger firms are buying different smaller distilleries or similar-size firms. The whole lot out there continues to be exhibiting that total shift and premiumization that’s been occurring for the final decade. And that course of is continuous.
The actually fascinating factor that I didn’t anticipate was how a lot agave grew over the past yr and a half. It had been rising steadily for a very long time now. However it actually looks like it received turbocharged with the pandemic and gross sales of tequila. But in addition mezcal and another agave spirits have skyrocketed within the final yr. And also you’re seeing tequila and agave get into the highest three slots of total spirits by way of worth gross sales, not essentially quantity.
Whiskey has been widespread with craft distilleries, however does it appear like agave will take its place?
All tequila must be made in Mexico. A 100% agave tequila must be distilled and bottled in Mexico. Whereas what trade individuals check with as mixto tequila—that’s 51% agave, 49% different sugars—can nonetheless be bought in bulk after which bottled within the U.S. In order that’s most likely what’s primarily going into a whole lot of the tequila-based RTDs after which among the different stage bulk manufacturers of agave spirits. However all that’s popping out of Mexico. Whereas on the American facet, there’s been a small however rising motion of California distillers to create California-distilled agave spirits. Venus Spirits in Santa Cruz; St. George, clearly, is one in all them; Ventura Spirits was one other; and Shelter Distilling. All of them are shopping for agaves—I consider, they’re blue agaves from a farmer in Yolo County in California—after which cooking them, distilling them right into a California agave spirit.
“There’s been a small however rising motion of California distillers to create California-distilled agave spirits.”
That’s not gonna dramatically shift the market as a result of it’s such a small quantity that they’ll create, however that’s an fascinating factor. Outdoors of that, there’s been a variety of U.S.-based craft distillers who’ve been making agave spirits from syrup, just like the agave syrup that folks will use as an alternative of sugar. Mainly, that commodity product is bought in bulk after which they ferment that and distill it into an agave spirit. That has been occurring for a decade or in order effectively.
In order that market is somewhat bit restricted on the American facet. Although those which might be doing it, they’re discovering success and, of their tasting rooms, promoting it. Individuals are serious about it and shopping for it. However by and huge, American craft distillers, the place they’ve largely been centered, has been whiskey for a very long time. We had some knowledge just a few years in the past that over 50% of latest craft distillers have been centered on making a whiskey.
Is there something notably fascinating occurring with craft whiskey?
Plenty of stuff happening with whiskey. I’ve a e book that got here out final yr that seemed on the re-emergence of regional kinds of whiskey. So Missouri created a state legislation defining what Missouri bourbon is. The Texas whiskey affiliation created an trade definition for what Texas whiskey is and what the principles are round if you wish to use that time period in your label. There are a variety of various states including to this dialog. We used to speak a very long time in the past about rye whiskey from Maryland or Pennsylvania. These kinds died out throughout the post-World Conflict II interval and when every part consolidated into Kentucky and Tennessee. And people are re-emerging. After which with the expansion of craft distilling across the nation, you’re beginning to see individuals attempting to outline their kinds of their area. In order that’s form of enjoyable.
“…With the expansion of craft distilling across the nation, you’re beginning to see individuals attempting to outline their kinds of their area.”
And it’s laborious to say proper now what is actually the defining attribute of bourbon made in Missouri in comparison with Kentucky. However, I’m certain that these issues will emerge over time. Texas is so intense you can get absolutely mature-tasting whiskeys in a really quick time period. So due to the extreme warmth and chilly that they get, you possibly can have 36-month, 48-month-old whiskeys that style absolutely mature and developed.
Whereas, if you happen to get a bottle of Kentucky bourbon, that’s been aged for 36 months, it’s not going to be nice. However that has every part to do with their getting old setting that they’ve that’s a lot completely different in comparison with Kentucky. And a whole lot of the Texas distillers are actually leaning into that to reap the benefits of their setting and the distinction that makes.
And so, a whole lot of drinkers have been skilled on age statements. “Oh, it’s 10 years outdated or it’s 23 years outdated. It should be implausible.” However you possibly can nonetheless get actually nice whiskey in a special getting old setting that’s a lot youthful by way of the period of time it’s spent within the barrel however, due to the setting, has a extremely wealthy and absolutely developed profile.
Do you see RTDs rising in craft spirits?
RTDs have actually caught on amongst craft distillers. Venus Spirits in Santa Cruz is a superb instance of this. That they had their present line of gin and whiskey that they make. So you possibly can principally take a few of that manufacturing that you just’re already doing and bundle it as an RTD. After which, so far as I do know, the margins in your per unit of alcohol for the RTD versus within the bottle are higher.
It’s a extra difficult course of to make a superb cocktail and have it’s shelf secure. There’s a whole lot of meals chemistry that comes into this. Melkon Khosrovian of Greenbar Distillery in LA, once I talked to him, stated, “I didn’t understand that once I received into RTD, it was principally gonna be like creating a complete new enterprise for my distillery.” The processes which might be concerned and the issues it’s a must to take into consideration will be very completely different from making a gin or making whiskey and bottling that. However persons are shopping for it, persons are actually . And the standard of immediately’s RTDs is so a lot better than what existed 5 years in the past.
Earlier than the final couple of years, the primary RTD producers have been terrible whiskey and Cokes and actually dangerous margaritas. And that was form of it. However then, individuals like Cutwater and others put a whole lot of effort and thought into making high quality stuff, they usually’ve actually taken off. In order that’s an excellent alternative for craft distillers. It could assist them of their regional market get some extra penetration into grocery shops.
Which craft spirits do you discover most intriguing?
“One of many nice issues in regards to the U.S. is that we’ve got individuals from all all over the world that convey their cultures and traditions right here.”
One of many thrilling issues I noticed this yr for our competitors is that we had a few U.S.-made Asian-style spirits. We had a shochu that was produced from rice right here in america after which we had a Vietnamese-style spirit known as rượu đế made in Texas by a Vietnamese household who lives there. And each of them did rather well in our competitors.
To me, one of many nice issues in regards to the U.S. is that we’ve got individuals from all all over the world that convey their cultures and traditions right here. And we get to style a few of that culinary and spirit affect that they convey in. There’s Vinn Distillery in Portland, Oregon, they usually’re making a baijiu-style spirit. It’s a really small section of the spirits market, nevertheless it’s thrilling to see these kinds of issues occurring.
Any craft distillers individuals ought to keep watch over?
You’ve gotten Golden Moon in Golden, Colorado, have Peach Avenue, which is within the extra western a part of Colorado. After which clearly, you may have a bunch in Denver which might be doing good issues. Leopold Brothers has been one of many oldest and most well-established. They’ve gotten some press through the years as a result of they’re a favourite amongst a whole lot of the whiskey writers. They’re at all times any person to keep watch over as a result of at any time when they arrive out with a brand new progressive factor—whether or not it was their Three Chamber rye whiskey or their cult collaboration mission that they did with George Dickel—they get a whole lot of press.
After which California has at all times received some actually nice stuff. I’m a giant fan of Spirit Works Distillery in Sebastopol. Greenbar is a extremely progressive firm. They’ve been doing lots by way of RTDs just lately. However their Gradual Hand malt whiskey and their California Poppy liqueur have at all times been ones that I actually loved.
Stark Spirits in Pasadena makes a implausible American single malt. It’s probably the greatest being made within the nation. And so they’re a tiny husband-and-wife firm. There are such a lot of craft distillers doing good issues. And a few of them is perhaps making among the nice spirits on the planet, and but it’s laborious for individuals to get traction generally.
What you desire to for individuals to find out about craft spirits immediately?
“I’m a giant fan of encouraging individuals to be adventurous.”
One of many thrilling issues about craft spirits is the method of discovery and discovering new, fascinating issues. And one of many causes I believe the market will finally begin to decelerate—although, I believe we’re not fairly there, we’re nonetheless within the development part—is that there are solely so many new faces, new issues you possibly can take in earlier than you discover your area of interest. So I believe when persons are in that discovery part, it’s actually enjoyable. You strive new issues after which individuals step by step discover the few issues that they actually take pleasure in.
I’m a giant fan of encouraging individuals to be adventurous. Don’t simply say, “I’m a bourbon drinker.” As a result of there is perhaps a gin or an aquavit {that a} distiller’s making that’s scrumptious that you just discover intriguing. So I’m at all times encouraging individuals to increase their horizons somewhat bit. You’re a gin drinker? You would possibly actually like aquavit. When you’re a bourbon drinker, you additionally would possibly like some American single malt that any person in Colorado is making.
