CATEGORY FOCUS
RY E ’ S
THE LIMIT
AS WHISKEY LOVERS CLAMOR, SUPPLIERS SCRAMBLE
TO KEEP UP—AND DISTINGUISH THEIR BRANDS
BY JACK ROBERTIELLO
D
emand is not a problem. It
seems that no matter what
hits the shelves, it sells. It’s
an enviable position for any
spirit, and it encapsulates the unrivaled
comeback tale of rye whiskey. According
to figures from the Distilled Spirits Coincil,
rye sales exploded—609% from 2009 to
2014—with growing supplier revenue
jumping from $15 million to $106 million
over the same time period, representing
over $300 million at retail. And last year,
once again, rye sales leapt by nearly 20%.
Key to rye’s current popularity is enthusiasm
among bartenders, which caught most
distillers by surprise. A bartender movement
led Wild Turkey to reverse plans to lower the
proof on their iconic 101 down to 80. Seen
here: Wild Turkey Rye Swizzle.
Bulleit, comes from the MGP Distillery in
Indiana—a recent Cowen Insight report
stakes MGP’s share of rye sold in the U.S.
at a surprising 70%.
If not from Indiana, a good portion
of ryes arrive from Canada including Lot
No. 40, Crown Royal Northern Harvest
Rye, Alberta Dark and others. (Canadian
law allows distillers there to call “rye”
any whisky made with a low percentage
of rye—most of the brands emerging are
high rye content traditionally used for
blending into Canadian whisky.)
Bartender Love
Rye is still a very small piece of the
American whiskey trade, about 675,000
cases. But Canadian rye also increased by
about 100,000 cases last year. Numerous
brands—from Whistlepig and High
West to Templeton, Hochstadter’s and
others—continue to emerge.
Meanwhile, the big Kentucky
distillers increase their rye output
while at the same time managing
recent
expansions
bourbon
production. Much of the rye sold
under a long list of names, including
The boom and the accompanying
enthusiasm, especially among bartenders,
caught most distillers by surprise. As
recently as a few years ago, Wild Turkey
was poised to reduce the proof on their
long time rye icon, Wild Turkey 101.
The fight for a stay of execution, led
by California bartender Erick Castro,
helped convince brand owner Campari.
“If they had killed it there would have
been a lot of unhappy bartenders,” said
Robin Coupar, Global Whiskey Brand
Ambassador, Campari USA.
It’s a sign of how important the bartender has been in the return of rye, and
most brands retain tight allocation, focusing on on-premise and specialty retailers.
“When I started managing Russell’s
Reserve in 2010 or so, that’s when rye
was starting to grow, and something was
happening driven by bartenders
on the East and West coasts,”
Coupar says. “Now value is
increasing faster than volume,
so producers and brands are
able to take a little bit of a price
increase because the demand
is high and the availability is
limited.” Campari launched
a very limited barrel Russell’s
Reserve rye this year, a non-chill
filtered 104 proof expression. This
spring marked the second time that
Michter’s Distillery released their
US*1 Barrel Strength Rye. “To
enter the distillate for our US*1
Rye and our US*1 Bourbon into
the barrel at 103 proof instead of
a higher, more industry standard
proof is very expensive, but our
goal at Michter’s is to produce
the greatest whiskey possible, regardless
of the cost,” says Michter’s President,
Joseph J. Magliocco.
Points of Distinction
Communications Director for Heaven
Hill Larry Kass points that some confusion
still reigns about what rye is. “Ours are
traditional American-style three grain,
51% rye, quite different from the high
rye content blending ryes.”
Coupar agrees: “The formula for
a lot of those ryes is very high—95%
with other malted ryes so they’ll be
big and bold and spicy. At Wild Turkey, we still use a significant amount
of corn, so Russell’s Reserve is spicy and
bold but with a mellow sweetness.”
There is much talk in the spirit
business about the “smoke and mirrors” used to sell the brands that
are positioned as craft but come
from the massive Indiana distillery.
That’s unlikely to change much, as
MGP is expanding capacity.
“Brands are able to take a little bit of a
price increase because the demand is
high and the availability is limited.”
But others are poised to benefit from
the opportunity to charge more: this
month, Booker’s Rye hits the market.
“I’m so proud to honor my dad, Booker
Noe, with the special release of one
of his greatest experiments, Booker’s
Rye,” says Fred Noe, the 7th generation Master Distiller at Beam Suntory. “Dad saw the temperamental
rye grain as a challenge—small, but
tricky to work with. He finally got it just
right when he laid down these barrels
late in his life in 2003.”
Beam Suntory already has longtime stand-bys Old Overholt and Jim
Beam Rye as well as Knob Creek Rye
and Alberta Rye Dark Batch Whisky.
Rob Mason, Beam Suntory Vice President, US Bourbon, points out that
Knob Creek has been the fastest growing rye over the last 52 weeks per Nielsen
numbers. Overholt is actually one of the
ryes that has the biggest momentum, a favorite in the bartender community in
terms of quality and value,” he adds.
Heaven Hill added the sixyear-old 110 proof Pikesville
last year at about twice the
price point as the established
Rittenhouse. “We knew there was an opportunity there and we’ve seen Pikesville
be successful to date,” says Senior Brand
Manager for Whiskeys at Heaven Hill,
Susan Wahl. “We’re in the midst of
an expansion, but both ryes are still
allocated products because the demand is just so high. We’d love to
be able to push over more to the offpremise secaor but we haven’t had
the supply to give us that luxury.” ■
SCOTCH IN THE RYE GAME
How about this for a signal that demonstrates how coveted rye has become as
a taste profile: “I am pleased to present
the first Johnnie Walker Rye Cask finished
Blended Scotch Whisky,” said Master
Blender Jim Beveridge. Johnnie Walker
Select Casks – Rye Cask Finish has Cardhu single malt at
the heart of the blend, matured
for at least ten years and then
rested in first-fill American Oak
ex-rye whiskey casks, creating
a complex new whisky with
rich layers of flavor starting
with creamy vanilla notes and
transitioning to a spicier finish.