The Three Types of Craft Distilleries: Big, Small, and Faked

Photocredit: Glenford Jameson

The word ‘craft’ has connotations associated with it that are drawn from personal experiences and expectations. Individual definitions of craft whisky range from it being a meaningless marketing phrase, to the honest belief of a traditional whisky making process. The truth is somewhere in-between.

During last week’s podcast, Matt Jones was our guest (Matt is the Canadian Brand Ambassador for Beam Suntory). I asked Matt about the lawsuits directed at Maker's Mark (owned by Beam Suntory) over the words ‘hand crafted’ and ‘craft whisky.’ His response was excellent—He’s glad it’s starting the conversation.

The conversation is one that favours Maker’s Mark Distillery. Matt Jones calls the distillery the smallest distillery out of the big guys. He went on to say the distillery is the model of inefficiency; they employ people where automation is possible. On the podcast, he went on to describe each step where that's true (Matt also provides cocktail recipes and cooking tips! It's definitely worth the listen). It’s clear that Beam Suntory holds a confident position in this debate. 

Many, though, would not consider Maker’s Mark a small upstart craft distillery. It’s not. But this is where the conversation gets muddled.

Big Distilleries vs Small Distilleries

Big distilleries are excellent at making great whisky. They have it down to a science. New small distilleries go through plenty of growing pains that becomes evident in the whisky that's sold. Arok’s comments on small craft distilleries are perfect:

Out of all the ones I tried, I remember a handful that I really liked. There are very few would I want to spend my money on a second time. I know how the process works. I know that economies of scale play a big part in the “craft price,” but there weren’t many that I felt were…well…good. Much less good enough to justify an inflated price.

It’s important to support smaller distilleries. It is also important to keep expectations reasonable. This is where local economies can help their distillery through the early years of production. Not all small distillers are actually that, however.

True Craft vs Faked Craft

Smaller distilleries can compete against the big guys with a unique product and an audience willing to pay extra for craft. It’s harder for these smaller distilleries to compete against fake craft distilleries because they’re competing for the same small audience.

True craft and faked craft is a problem. Eater had an excellent article on how labeling makes this competition difficult. Comments from Ben Lyon (Lyon Distilling Co) are excellent: 

Lyon suggests a few key improvements. "If sourced, identification of the actual distiller would be present," he says. He also wants to see any artificial flavorings listed on the label, noting that the TTB allows "up to 2.5 percent 'harmless coloring or flavoring materials'" to whiskey with no mandate to declare it on the label.

In the United States especially, it’s possible for a company to buy whisky from a big producer, add some flavouring, create a fancy label, and ship out a product that claims to be from a unique distillery that does not actually exist. When the origins of whisky aren’t included on the bottle, that’s a problem. When non-spirit additives aren’t mentioned, especially flavouring agents and syrups, that’s a bigger problem.

As a consumer, if your definition of craft whisky leans toward those romantic notions, research before making the purchase is key. I don't suspect that the laws will change anytime soon, though the rise of true small distilleries might change that in time. 

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