The Sip Archives – Page 7 of 10 – Whiskey for the Ages

The Whiskey Value Conundrum

Posted on 24-June-202005-June-2021 by whiskeyfortheages

The Whiskey Value Conundrum

Hello, Sippers! Hope you are doing well and enjoying nothing but exceptional pours.

While reading my dad’s Whiskey Availability and Marketing series, a couple of thoughts came to mind, and I thought this post would be a nice followup to his series, adding an additional wrinkle or two to your whiskey enjoyment.

What does value mean when it comes to whiskey?

AND maybe more importantly, how can one define a personal sense of value when making purchases?

Of course, there’s the straightforward answer regarding supply and demand, which was covered in Dad’s three-part discussion. And it certainly all makes sense! Stores, chains, states and even countries are relegated to limited allocations of certain brands and products, making them readily available or perhaps more of the unicorn variety.

All of the above is well and good, but what about you, the consumer? This is what I call the “Whiskey Value Conundrum.” Just because something is readily available does not always translate to being a good pour or lessen its value. Even some of the whiskeys you can find on the upper shelves have their pitfalls and may not be worth a purchase.

Photo by Micheile Henderson on Unsplash

So, how do you know you’re getting a good value? Or rather, how do you learn? (Un)fortunately, there is a bit of necessary trial and error involved here to discern your own tastes and what you like. And admittedly, I think defining value is always going to be a subjective enterprise.

Regardless, you’ll still find hundreds of articles, with the “Top 10 Best Value” or something of the like on the internet. There are a few regulars on such lists, (e.g. Eagle Rare Ten Year, Elijah Craig Small Batch, Basil Hayden’s Straight Kentucky Bourbon, etc.), and they all hover at around the same price point $20-$40 USD (in Idaho). These are also readily available in Idaho as well, but to me, this still doesn’t solve this Whiskey Value Conundrum.

We know the “$” sign is the most basic unit of value, so if I am picking up a $20-30 product, I have to ask, “What am I expecting from this bottle?” not, “Will this be a diamond in the rough?” Temper expectations when buying an inexpensive whiskey, but don’t be afraid to create a standard when you’re dishing out more coin.

Deriving Value from Price: $20-30

Using the $20-30 bottle as an example, here’s some of what I, personally, anticipate and expect:

▪ At least one major flavor profile (e.g. fruit, spice, bread, oak, etc.) to come through as the hero. … I do like more complex whiskeys, but I don’t expect such complexity in a pour at this price point. You wouldn’t expect a kindergartner to know middle school math, right?
▪ A low proof of between 80 and 90. … $20-30 bottles are meant – more often than not – to be readily available. To have enough product, the distillery might not age the whiskey much longer than the minimum requirements (in the case of bourbon, a minimum of two years). It will likely be watered down, lowering the proof, significantly lower than the Barrel Entry Proof.
▪ Straight/Blended. … Meaning, I’m not expecting “Small Batch” or “Single Barrel” material here. I’ll take the general blend of a rickhouse at this price without complaint.
▪ Sourced. … If this is a blend of whiskeys from across the country or is sourced, I’m not bothered at all at a $20-30 price. Again, remember, availability is the crux of the products at this price, so if this is the best way to guarantee product to the consumer, so be it.
▪ General mellowness. … Not just in the flavor profiles or with the alcohol heat, but even in the finish.
▪ An easy sipper! … This one may be the most important and discerning factor to me specifically. $20-30 bottles are ones that I’ll most often have at a gathering where I don’t have to focus too much on picking and poking at complexity. This also means that I don’t want to find a flavor that sticks out like a sore thumb, and makes me look for a glass of water to cleanse my palate.

I can and do seek out $20-30 bottles from time to time, and can find excellent value in them! If I find one with more complexity or 90+ proof, then its value increases for me because it exceeds my expectations. Just as long as the product meets my basic requirements, I’m not upset at the price and can often be convinced to purchase again, because they do offer their own unique value as my easy sippers.

That being said, and if you’re curious…

Eagle Rare Ten Year, Elijah Craig Small Batch, Gentleman Jack Tennessee Whisky, Maker’s Mark, and Tincup American Whiskey are a few which either meet or exceed my expectations for this category. Notice the increased age in the Eagle Rare, and the Small Batch classification in the Elijah Craig. That doesn’t mean that the standard Maker’s, blended Tincup, or heavily advertised Gentleman Jack don’t carry their weight and impart their own value.

Deriving Value from Price: $60-80

But what about when I’m splurging? What if, say, I want to spend $60-80? What am I expecting in a pour from one of these bottles?

▪ Complex flavor profile. … Continuing with the earlier analogy, we’re in not in kindergarten anymore. I’d say we’re at high school – if not college – level now. I want to smell and taste a set of diverse aromas and flavors in the whiskey I’m sipping. The blend here is key.
▪ 90+ proof. … I want to know this is a special whiskey. Show me this by not cutting it down, or by letting it age longer. And on that note…
▪ Age statement. … I want to see how much energy and time was put into this bottle. Specifically, I’d like to know that it’s had plenty of time in the barrel to become the best version of itself as possible. If there isn’t an age statement, then I’d like to at least see a darker color in the whiskey itself, especially in bourbon, to show off its age a little.
▪ Small Batch/Single Barrel Designation. … Again, this is supposed to be special and maybe even have a little bit of mystery about it, like when you choose a “Name Brand” product over “Generic.” If it’s “Straight” or “Blended,” then why is this unique enough to be priced at $60-80 (or more)? When I hear “Straight” or “Blended,” I think “Generic,” even when it’s not sourced. I’m wanting the metaphorical “Name Brand” here.
▪ One distiller. … Unless this is a unique collaboration of well-known distilleries, I want one name to take accountability and responsibility of the product. This is their pride and joy, the whiskey they alone raised to maturation. Own it.
▪ Frills. … What do I mean by this? Well, this could be anything from a fluffy back story and/or fancy packaging or bottling. Note – this doesn’t mean anything about the quality of the whiskey, which is where the value truly is. But at $60-80, again – this is the pride and joy; it’s okay to be dressed up a little bit for graduation. But this is not and should never be a deal breaker. Frills are something to anticipate, not demand.
▪ Warmth! … For me, this is the most important part of whiskeys in this price range. I’m not looking for an easy sipper anymore. Now, I want to feel something special. I want that pause button that you hear my dad and I talk so much about. If I can’t enjoy this with peace and quiet or maybe with one or two people, it’s not worth it. Plain and simple.

Exceeding my expectations is trickier when we hit this price category; however, it can be done. Most often, it is where the proof is concerned. If I’m tasting something that is high proof (115+), and the alcohol burn is surprisingly subtle, I’m more impressed with the whiskey, and its value increases. Likewise, sometimes the blends are just out of this world, or the overall warmth or vibe is just a bit stronger than others.

As you can see, there’s a bit more subjectivity when it comes to exceeding expectations in this category, so that’s where you, the consumer, can really ask what’s most important to you and play around with it a little.

Thankfully, in this price range, there are still options which can either meet or exceed my lofty expectations. Again, if you’re curious…

Blanton’s Single Barrel, Booker’s Country Ham Small Batch (or any Booker’s really), Colonel E.H. Taylor Small Batch, Old Forester 1920, and Stagg Jr. Batch #12 are just some of my favorites. Notice the frills on the Blanton’s and Booker’s bottles, and the back story for the Booker’s, Old Forester and Colonel Taylor. But also recognize the simplicity of the Stagg Jr. in its packaging and presentation. It’s not all in the look!

You’ll notice that I skipped a couple of price ranges here: $30-60 and $80+. I did this purposefully.

I think that in the $30-60 range, where we as customers (notice I didn’t say consumers here), are willing to bend our wallets a bit. We can get talked into things in this range, so the Whiskey Value Conundrum is even more confusing. I would argue subjectivity is strongest in this category, and even I bend a bit on occasion.

So, what’s a sipper to do? My recommendation: pick two or three expectations (not anticipations) from the $20-30 category and another two or three non-contradicting expectations from the $60-80 category. Make sure they are the most important ones for you, not for anyone else. If you’re being talked into trying something, make sure you stick to your value points.

At anything more expensive than $80, acknowledge that you are going to be paying in part for the name on the bottle and in part for limited availability or rarity. Check reviews from people who have similar tastes or values to you. Do your research: what is supposed to make this particular bottle not just special, but EXTRA special.

And recognize that it’s okay, and even expected, to change your values for a whiskey at any price. Those new values can be incredibly subjective to your own unique whiskey experience, hence why I am not going into my expectations here. (Though, if you ask me, paying more than $80 for a whiskey is unnecessary as I can personally find all of my value needs met in lower price brackets, but I’m not here to judge you.)

And thus, the Whiskey Value Conundrum.

Spend some time defining your values for certain price brackets; they don’t even have to be the same brackets that I created here. You’ll notice our Whiskey by Price page actually has different brackets all together for the simple reason that price does not always equal value and vice versa.

Whiskey is and has always been a subjective enterprise, and if your experience isn’t enjoyable, then what’s the point?

These are just a few of the values I have for my whiskeys which you can mix, match, use, or throw out the window. If they help you in your Whiskey Value Conundrum, wonderful! If not, well, maybe they can assist you in thinking about what value means to you and give you a springboard to create or understand your own values a bit better.

What are your Whiskey Values? Let us know in the comment field below!

Written by Hannah Dawson

WhiskeyfortheAges.com editor

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Featured Photo by Micheile Henderson on Unsplash

Whiskey Availability – By the Numbers part 3 of 3

Posted on 10-June-202005-June-2021 by whiskeyfortheages

Hello Reader, and welcome back! In part three of our series, Whiskey Availability – By the Numbers, I’ll wrap up the whiskey availability and marketing saga, first with some bourbon history, then a little science and math. If you’ve missed either of the previous posts, click Whiskey Marketing – part 1 where I discuss marketing and store layout or Whiskey Availability – part 2, where I delve into regional selections, allocation, and rare and limited availability whiskeys.

Most whiskey drinkers who’ve been journeying a while have heard of the magic elixir, Pappy Van Winkle or “Pappy” as it’s known in the whiskey community. Pappy is nearly impossible to acquire and it’s sad to say, the large majority of us will never get a chance to taste this fabled juice. Why? Whiskey Economics 101: supply and demand — with a heavy dose of creative marketing thrown in for good measure.

The Pappy Van Winkle story is a GREAT way to conclude our availability journey. An argument could be made, this much sought-after bourbon energized the bourbon craze we’re now enjoying. Read along as I share a little whiskey lore …

There really was a Pappy Van Winkle!
Julian Van Winkle Sr. had distilling and spirit sales experience prior to prohibition; William Larue Weller had hired Julian as his first salesman! In 1931, at the age of 61, Van Winkle opened the Stitzel-Weller distillery. Through the next 34 years, until his passing in 1965, Julian Sr. continued to influence the bourbon industry.

But, by the mid nineteen-sixties, whiskey in general and bourbon in particular was unpopular with young Americans. As the war in Vietnam wore on, many in their twenties and early thirties rebelled against anything their fathers and grandfathers enjoyed. The clear spirits – gin, tequila and vodka were in vogue and whiskey sales plummeted.

After a decade of steadily declining sales (and family squabbling), Pappy’s son, Julian Jr. sold the Stitzel-Weller distillery and (with the exception of the Old Rip Van Winkle name) the rights to all of their whiskey brands. With whiskey still not in favor, and Julian Jr’s. passing in 1981, the Old Rip Van Winkle line and remaining barrels at Stitzel-Weller went to his son, Julian III. Shortly thereafter, the Stitzel-Weller distillery stopped producing for the Van Winkle family. Julian III contracted the Hoffman Distillery in Lawrenceburg, Kentucky to store, bottle, and distribute his whiskey.

By the early 1990s, bourbon began creeping back into American drinking culture and the Pappy brand had begun to garner some attention. It is thought that Julian III had been sourcing older whiskeys, purchasing from many area distilleries, including some barrels from Stitzel-Weller that may or may not have been the original Pappy product. With help from the Hoffman Distillery, Jillian III released a 10 year old bourbon, followed by a 12 year old, then a 14 year old and eventually some 20 and 23 year old bourbons.

Upon the release of one of these older bourbons, a Chicago sales rep introduced a sourced 20-year-old bottle to the Beverage Tasting Institute’s judging panel. Amazingly, it scored a 99, and it was believed to be one of the finest bourbons ever produced. There is a common belief the bourbon inside that bottle had been purchased from one distiller who had purchased it from another.

Suddenly, everyone wanted a bottle of Pappy Van Winkle and the brand which had been languishing on store shelves became difficult, and then near impossible to find. And don’t forget, the bulk of this whiskey was likely sourced! Years later, after Sazerac purchased all the remaining Stitzel-Weller holdings and began producing Pappy Van Winkle under their banner, it is entirely plausible little if any barrels containing the original recipes Pappy Sr. had developed were even around. Marketing at it’s finest!

And today, other whiskeys have had similar back stories, complete with sourcing and availability challenges. Of course there are other factors to why some whiskeys are challenging to find as well … Whiskeys can be seasonal releases or under allocation allotments due to production quantities as I’ve noted in the previous posts.

But I promised some science – and a little math … follow along, (there may be a quiz!)

The Most Common Production Limitations
Let’s dig into this supply thing a bit. Surely distillers want to sell product and they want to get the best price they can for what they produce. That’s pretty easy to understand. Aside from production costs which are largely fixed (it costs “X dollars” to produce “Y” gallons), the supply side is all most distillers can control. But there is another factor to consider along with the number of barrels filled and set aside for aging … evaporation.

Barrels can lose 2-3% (on average) of their liquid contents to evaporation annually, depending on climate. In hot and dry years, 4-5% is certainly possible. While 2-3% evaporation loss per annum may not seem like much, consider the following “on average” examples for bourbon aged in a standard 53 gallon barrel:

Evaporation losses at 2% per year
▪2 year old Straight bourbon: 2 gallons per barrel lost
▪4 year old Bottled-in-Bond bourbon: 4 gallons per barrel lost
▪10 year old bourbon: 10 gallons per barrel lost.

Evaporation losses at 3% per year
▪2 year old Straight bourbon: 3 gallons per barrel lost
▪4 year old Bottled-in-Bond bourbon: 6 gallons per barrel lost
▪10 year old bourbon: 14 gallons per barrel lost.

In dry environments, more water is lost, thus increasing the alcohol level in the barrel; in hot and humid climates, more alcohol is lost. Such is the case in Taiwanese whisky, where it is seldom aged long as the loss in alcohol is significant. However, whiskys made in cool and humid Scotland can be aged decades, as evaporation is only prevalent in warm temperatures.

Evaporation loss is known as the “Angel’s Share” … and the Devil gets some too! Each season, as barrels expand and contract with temperature changes, liquid gets absorbed and pushed out by the wood. Barrels can absorb as much as 3-4 gallons each. This absorption loss is known as the “Devil’s Cut”. Most distillers do not attempt to recover the lost whiskey due to the costs involved. Jim Beam has a proprietary project where some of the absorbed whiskey is recovered, but only a small percentage makes it into each bottle of Jim Beam Devil’s Cut Bourbon.

Now remember that 20 Year Old Pappy Van Winkle Family Reserve Bourbon? If ALL the years of aging were average (seems unlikely) and just 3% of the liquid was lost to evaporation each year … and after barrel absorption is accounted for … more than 26 gallons or about half of every barrel destined to become Pappy is lost! I’ve read some reports where after 23 years, less than 14 gallons of usable juice (or less than 70 bottles) per barrel remain. And while the total number of bottles released each year is undisclosed, I’m certain there are very few barrels of 23 year old Pappy around.

Another example, using a recent and allocated release from the Jim Beam Distillery, Booker’s 2019-03 “Country Ham” was made up of just 364 barrels (as stated in the packaging documentation). Each barrel would have been filled with 53 gallons (or about 200 liters) of white dog (the initial mixture) and set aside to age for six years and four months. While the total number of cases made available for sale was undisclosed, one could calculate* about 4600 (or more) gallons could have been lost to evaporation and barrel absorption. That leaves only about 12,250 cases or less than 74,000 bottles may have made it to the thirsty whiskey world!

*Using annual evaporation rate percentages and barrel absorption averages (for detail, see datasheet below). Interesting sidebar – Monetary losses due to absorption and evaporation alone could have totaled in excess of $2,000,000 at retail, but of course losses are probably factored in production costs.

These are just a couple of examples and every distiller operates with the same rules of physics. Factoring limited productions and allocation to Liquor Control States, Liquor stores and Markets, bars and restaurants as well as other distribution points, it becomes a little easier to understand why some products are so hard to track down.

I hope you’ve enjoyed and learned a little as you followed our Whiskey Availability and Marketing series. By the Numbers can get a bit tedious but I find the detail intriguing. I’d love to get your thoughts. Cheers!

Written by Brian Dawson

WhiskeyfortheAges.com editor

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Booker’s Example Datasheet

Photos in order of appearance:
Featured Image crafted by Brian Dawson
Pappy Van Winkle photo found on Google Images
Aisle of Barrels Photo by André Carvalho on Unsplash
Booker’s 2019-03 Country Ham by Beam-Suntory

Whiskey Availability, part 2 of 3

Posted on 27-May-202005-June-2021 by whiskeyfortheages

Thank you for catching up as we continue our Whiskey Availability and Marketing series! In Whiskey Marketing – p1, we discussed in-store merchandising and where in the typical liquor market one might find the whiskeys so many of us crave. In this post, I’ll discuss some of the more common whiskey availability terms and highlight why certain whiskeys may be difficult to find and purchase.

Rare Whiskey
Retailers are sometimes given the opportunity to purchase available liquor inventory from distributors or distillers based on previous purchases and/or overall sales of merchandise. A specific whiskey in the distribution chain may or may not be rare depending on the production run, AND regional availability. A small batch whiskey is not necessarily a rare whiskey and neither is a Single Barrel or a Bottled-in-Bond Whiskey … but they can be. So – What is a “Rare” Whiskey?

A rare whiskey is any whiskey which the seeker is having trouble finding. For example, I can find bottles of Eagle Rare in any store in Idaho. And every couple of months, expressions of Barrel Proof Elijah Craig grace the shelves as well. People who post in several of the whiskey forums I follow often lament these same bottles are next to impossible to find in their part of the country and world. Just like some scotches in this country, bourbons are often hard to find outside North America. In short, not rare for me; rare for them.

So in the broadest sense, a rare whisky is one which may simply be difficult to find, one which the store has little history of purchasing, or one difficult to acquire due to region availability.

Regional Whiskey
While it would be great to live in Kentucky, just down the road from Brown-Forman, Buffalo Trace, Four Roses, Heaven Hill, or one of the many stellar distilleries in the state, I reside in Idaho. So I’m not going to find releases exclusive to Kentucky, Indiana, or Tennessee. Likewise, people in the central part of the country are not likely to find offerings from the Pacific Northwest or Rocky Mountain states. And in just Washington, Oregon and Idaho alone there are more than 120 distilleries!

Regional distillers can and do produce outstanding whiskeys. I’m told Texas and Wisconsin have several fine distillers as do those in Georgia, New York and other states. While some may be able to mass produce and distribute a few of their products, most have other offerings which are made in smaller quantities. These products are seldom sold far from their points of origin. I’ve had good experiences with two distillers in my region: Wyoming Whiskey in Kirby, WY and Dry Fly Distilling out of Spokane, WA.

An early bottle from Dry Fly put the regional distillery on my radar. They produce a nice Straight Wheat Whiskey, an interesting Straight Triticale Whiskey, a sweet Huckleberry Port Finished Wheat and a wonderful Washington Straight Bourbon 101. I’ve enjoyed them all and the Bourbon 101 is a regular in my daily sipper rotation. Other than the Straight Wheat, one would be hard pressed to find any of these whiskeys outside of the Pacific Northwest.

Be sure to check out your local and regional whiskeys. Small distillers simply do not have the marketing budget or distribution capability to send product to cities around the states. By being adventurous, you’re sure to find something you’ll enjoy and you’ll be supporting local craftspeople and farmers.

Allocated Whiskey
I’m sure we’ll all agree big distillers produce a lot of whiskey. It’s said there are more barrels aging in Kentucky than there are people. Yet, there are still limits on what is available. Certainly there is some marketing involved, but a great deal of craftsmanship goes on as well.

We’ve all had experience with whiskey availability and allocation whether we knew it or not. We’re in the store and there — COMPLETE WITH THE HALO — is a single bottle of Blanton’s (or Weller Antique 107, or Stagg Jr. or …) And there are dozens of allocated whiskeys. One could say most higher end Scotches qualify, as do Japanese Whiskeys as there are only so many cases made available to us here in the United States.

In addition, a number of distillers produce special batches of product, releasing them at intervals throughout the year. These releases are typically made from a limited number of specially selected barrels. Some of these releases are of the high proof variety, or may be Bottled-in-Bond expressions, but that’s not always the case.

Then, factor in rewards and accolades. If a whiskey gets high praise from a noted reviewer or receives an award at a prestigious tasting event, the demand for product can skyrocket. Such was the case for Henry McKenna Single Barrel Bourbon, a ten year old offering after the spirit won awards in 2018 and ’19 at the San Francisco World Spirits Competition. Heaven Hill could not simply add another bottling or two just because they had won awards. After all, it took more than 10 years to grow trees for the barrels, procure the grains, produce the mash, age the distilate and bottle the bourbon which had been given the “Best in Show Whiskey” designation.

Retailers are only able to acquire product based on previous purchases. Once bottled, there is simply a limited amount of product available for distribution. Liquor control states get some, retailers get some, and bars and restaurants get some. The total supply is divided or allocated across the distribution chain. And certainly, distillers often have their more highly allocated brands that are met with great anticipation.

Depending on allocation quantities, special batches and releases may be sold from store shelves on a first come first served basis or released to the buying public through some type of lottery process. I have personally benefited from Idaho’s Liquor Lottery, given first right of refusal on bottles of 1792 Full Proof, Little Book expressions Noe Simple Task and The Road Home, and Weller C.Y.B.P. and 12 Year Old, and many others. Hannah, my daughter and fellow Whiskey for the Ages editor, has won the opportunity to purchase lottery bottles and several friends have been selected as well.

When I see any of the bottles mentioned above, I usually buy, because who knows when one will be seen in the wild again. In some circles people post pictures of their finds, boasting of their latest “Kung-Fu”. Others tell their friends and soon the shelf stocks are gone.

Limited Release Whiskey
Big production distillers offer many limited releases. Among the most popular, are offerings from Buffalo Trace’s Antique collection: George T. Stagg, William Larue Weller, Eagle Rare 17 Year Old, Thomas H. Handy Sazerac Straight Rye, and Sazerac 18 Year Old Rye all of which are released each fall. Stitzel-Weller Distillery’s Pappy VanWinkle can also be included in the popular limited release mix.

Limited release whiskeys are quite difficult to find and are seldom available outside of some type of lottery process. Old Forester’s Birthday Bourbon, Beam-Suntory’s Booker’s Anniversary Editions and Chapter Series, and Heaven Hill’s Elijah Craig 18 and 23 Year Old fall into the limited release catagory.

Limited releases are possibly the hardest bottles to purchase as they have small production runs, and in some cases, far less than 2000 bottles per year.

Rare, regional, allocated, and limited release whiskeys can be a source of frustration for many a whiskey buyer. Add to these the Store Picks, or Director’s Cut whiskeys, finding the unicorn can be a major challenge to overcome. Many of the whiskeys we want to buy are hard-to-find products. To improve your chances, I advocate building relationships with the people in the stores you shop. Sometimes, the whiskey you’re seeking will magically appear.

In the final post of our Whiskey Availability Series, “By the Numbers“, I’ll discuss the science and use a little common sense in effort to make it a bit clearer why a few of the most sought after whiskeys have such limited production runs. Until then, Cheers!

Written by Brian Dawson

Featured image created by Brian Dawson, WhiskeyfortheAges.com editor

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Map Photo taken from Google Maps

Blanton’s Single Barrel photo created by Brian Dawson of Whiskey for the Ages