Can Tech Save the Bourbon Industry From Turmoil?
▼ Summary
– Many traditional whiskey distilleries prioritize manual operations over modern technology, viewing it as part of their heritage despite potential inconsistencies and costs.
– Relying solely on manual processes without technological control can lead to inconsistent whiskey quality, as noted by industry expert Mandell.
– Whiskey brands often do not distill their own products, instead sourcing or contracting production from other distilleries like MGP Ingredients.
– Contract distilling provides immediate revenue for distilleries, as clients pay upfront for whiskey that will age for years before sale.
– Mandell and Hargrove founded a new distillery to address industry problems, focusing on creating a modern system to meet high demand from non-distiller brands.
Walking through a traditional whiskey distillery often feels like stepping back in time. While modern facilities embrace automation, numerous producers proudly emphasize their hands-on methods as a core part of their identity. This commitment to heritage can sometimes come at a cost, with easily avoidable mistakes accepted as part of the charm, even when they impact the bottom line. According to industry veteran Mandell, relying solely on human skill without technological support can lead to noticeable inconsistencies in the final product. He argues that less control over the process ultimately affects the whiskey’s quality, a flaw consumers can detect.
The bourbon industry operates with a surprising level of interdependence. The name on a bottle’s label does not always mean the company distilled the spirit inside. Some brands, like Redemption Whiskey, do not operate their own distilleries at all, instead sourcing their entire inventory from large-scale producers such as MGP Ingredients in Indiana. There are two common paths for brands that don’t distill their own spirit: sourcing involves purchasing already matured barrels, while contract distilling means having another producer make the whiskey to your exact specifications. Both practices are widespread.
Mandell previously played a key role in launching the Bardstown Bourbon Company, a respected distillery known for producing its own labels while also performing extensive contract work for other brands. The contract distilling side of the business provides crucial upfront revenue, as clients pay for whiskey that will not be sold for years due to aging requirements. This financial model helped stabilize Bardstown in its early stages, especially after bringing on an expert to resolve initial quality challenges. The distillery’s sleek, modern facility, situated fifty miles from Louisville, Kentucky, resembles a high-tech data center more than a conventional production house, reflecting its advanced operational approach.
After leaving Bardstown following a private equity acquisition, Mandell and his colleague Hargrove quickly embarked on a new venture. Their goal was straightforward: to apply their accumulated knowledge and build a distillery and system entirely from the ground up. They asked what the market truly needed and which existing problems they could solve. The demand for their services proved substantial, driven largely by the booming number of non-distiller producer brands. This category includes many of the celebrity-backed whiskeys flooding the market, all of which require a facility to produce their liquid.
(Source: Wired)