Jack Daniels fights fellow liquor giant, smaller distillers over Tennessee whiskey law 03-17-2014 11:22 AM EDT |BRUCE SCHREINER, Associated Press Jack Daniels fights fellow liquor giant, smaller distillers over Tennessee whiskey law NASHVILLE, Tenn. (AP) — If it isnt fermented in Tennessee from mash of at least 51 percent corn, aged in new charred oak barrels, filtered through maple charcoal and bottled at a minimum of 80 proof, it isnt Tennessee whiskey. So says a year-old law that resembles almost to the letter the process used to make Jack Daniels, the worlds best-known Tennessee whiskey. Now state lawmakers are considering dialing back some of those requirements that they say make it too difficult for craft distilleries to market their spirits as Tennessee whiskey, a distinctive and popular draw in the booming American liquor business. But the people behind Jack Daniels see the hand of a bigger competitor at work — Diageo PLC, the British conglomerate that owns George Dickel, another Tennessee whiskey made about 15 miles up the road. Its really more to weaken a title on a label that weve worked very hard for, said Jeff Arnett, the master distiller at the Jack Daniels distillery in Lynchburg, Tenn. As a state, I dont think Tennessee should be bashful about being protective of Tennessee whiskey over say bourbon or scotch or any of the other products that we compete with. Republican state Rep. Bill Sanderson emphasized that his bill wouldnt do away with last years law enacted largely on the behest of Jack Daniels corporate parent, Louisville, Ky.,-based Brown-Forman Corp. The principal change would be to allow Tennessee whiskey makers to reuse barrels, which he said would present considerable savings over new ones that can cost $600 each. There are a lot of ways to make high-quality whiskey, even if its not necessarily the way Jack Daniels does it, Sanderson said. What gives them the right to call theirs Tennessee whiskey, and not others? Sanderson acknowledged that he introduced the measure at Diageos urging, but said it would also help micro distilleries opening across the state. Diageo picked up on the same theme. This isnt about Diageo, as all of our Tennessee whiskey is made with new oak, said Diageo executive vice president Guy L. Smith IV. This is about Brown-Forman trying to stifle competition and the entrepreneurial spirit of micro distillers. We are not sure what they are afraid of, as we feel new innovative products from a new breed of distillers is healthy for the entire industry, he said. Jack Daniels last year sold 11.5 million cases of it Black Label last year, a 5 percent increase from 2012. Dickel, the second-largest Tennessee whiskey producer, sold 130,000 cases in 2013. The standards and special branding of Tennessee whiskey are an outgrowth of the special designation granted long ago to bourbon. A half-century ago, Congress declared bourbon a distinctive product of the United States. By law, bourbon must be made of a grain mix of at least 51 percent corn, distilled at less than 160 proof, have no additives except water to reduce the proof and be aged in new, charred white oak barrels. Spirits that dont follow those guidelines cant be sold as bourbon. One example is Brown-Formans own Early Times, which is marketed as a Kentucky whisky because it is made in reused barrels. Billy Kaufman, the president Short Mountain Distillery in Woodbury, Tenn., said it is more difficult to distinguish spirits not meeting the Tennessee standard. If I made whiskey in Tennessee in a used barrel, what it would be called then? he said. Whiskey, made in Tennessee? David McMahan, a lobbyist representing Dickel and Popcorn Sutton Distilling, said the law passed last year would require all Tennessee whiskies to taste like Jack Daniels. Its not unlike if the beer guys 25 years ago had said all American beer has to be made like Budweiser, McMahan said. You never would have a Sam Adams or a Yazoo or any of those guys. But Tennessee craft distillers are divided about the state law. Charles Nelson, the CEO of Nelsons Green Brier Distillery in Nashville, said he supports tighter regulation. Holding ourselves to a higher standard will ultimately be better for all the people in the category, he said. If we lower the standards, it could lead to more products and brands that could lower the reputation of Tennessee whiskey. Whiskey is clear when it goes into the barrel. Its during the aging process that the whiskey acquires color and flavors. Jack Daniels Arnett said other distillers reusing barrels might resort to using artificial colorings and flavorings that wouldnt match the quality of the whiskey stored in new barrels. Weve been making whiskey a long time, and we know that would not uphold the quality that people expect from Tennessee whiskey, he said. So we wouldnt dare consider doing it, even though it would save us millions of dollars every year. Jack Daniels stores its whiskey in new barrels made at a Brown-Forman plant. Sanderson argues that the flavor and color of the whiskey is determined more by the charring of the inside of the barrels, which he said is a process that can be repeated. Consumers would ultimately decide whether the end product matches up. If theyre making an inferior product, the market will decide, he said.
Posted on: Mon, 17 Mar 2014 16:46:11 +0000
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