253 - OKI Relaunch, Craft Bourbon Bust, and Return of Age Stated Knob Creek on Bourbon Community Roundtable #44
Manage episode 261824991 series 69890
Today’s podcast featuring the roundtable talks about the controversial relaunch of the OKI brand. We examine the potential motivating factors behind New Riff selling the label and if it’s a pure money grab by the new company that owns it. We then look at the current landscape of craft distillers and if they will survive the COVID-19 conditions as over 43% of all craft distillery workers have now been laid off or furloughed. Lastly, we see an age statement return to Knob Creek.
- You can now buy Barrell Craft Spirits products online and have them shipped right to your door. Visit BarrellBourbon.com and click Buy Now.
- Receive $25 off your first order at RackHouse Whiskey Club with code "Pursuit". Visit RackhouseWhiskeyClub.com.
- This week’s Above the Char with Fred Minnick talks about buying whiskey for cheap during the pandemic.
- OKI is being relaunched with new ownership. Why would New Riff do this and is it a money grab?
- 118 craft distillers surveyed recently, 42% said they do not believe they will able to stay in business for more than three months with COVID-19. Is the craft boom going to bust?
- The return of 12 and 9 year Knob Creek. What does this mean for private barrel selections?
- Thanks to Blake from bourbonr.com, Nick from BreakingBourbon.com , Brian from sippncorn.com, and Kerry from Subourbia for joining.
0:00 There's two things you can count on on the roundtable. That's I'm gonna be here and that my Internet's gonna go out.
0:17 Welcome back because it's Episode 253 of bourbon pursuit. I'm one of your hosts Kenny. And on our news this week, we selected a barrel of wheat whiskey from old elk. But we're also joined by special guest and master distiller Greg Metz, you might recall back from Episode 154, because he was also the previous master distiller for that big factory in Indiana we call MGP virtual barrel picks, they might be the new normal for a while, so we're looking forward to bringing more of those to you via live streams. So make sure that you are subscribed to our YouTube channel, so you don't miss a single one of them. Now onto the news. Will it distilleries master distiller drew Cole's Veen has been named a finalist for the coveted James Beard award.
1:00 Award for Outstanding wine, beer or spirits producer. The James Beard Foundation awards honor the best in food dining from cookbooks and rising shifts to the best restaurants and of course distilleries in the US. Time magazine even called it the Oscars of the food world. Drew Colvin first joined Willett distillery back in 2003. And overtime, he's developed mash bills that extend the company's bourbon and rye portfolio, which earned him for semi finalists nominations for the James Beard award. However, this is the first year that he's actually been named a finalist. So hats off to drew congratulations and awesome work on the recognition. The winners for the James Beard awards will be announced on September 25.
1:42 The 2020 release of the mixers 10 year old single barrel Kentucky straight bourbon whiskey will go on sale this may of 2020 it is 94.4 proof and it will sell for suggested retail price for around $130 in the US new bottles of larceny barrel proof and alarm
2:00 Craig barrel proof will be coming soon to a shelf near you both bearing the code B five to zero. The letter B means it's the second release of the year. digit five means it was released in the fifth month of the year, which is May. And the last two digits, you guessed it 2020 denote the year. The new batch of Elijah Craig barrel proof will come in at 127.2 which is on the lower end of the spectrum for the line. And the larceny barrel proof is now in its second release when you bottle that 122.2 proof and that's just one point lower than the initial first release, comprised of barrels ranging from six to eight years old. The larceny barrel proof will have a retail price of around $50 whereas the 12 year old Elijah Craig barrel proof will be around $80 you can look for both of these coming to a whiskey quickie in the near future. For those that enjoy the shutter Bock, we're from Texas comes a collaboration with bow Cody's and their new Texas Bach. It is a malt whiskey made from the exact recipe
3:00 shiner Bock beer, utilizing the breweries Nashville and proprietary lager yeast strain, to what they call create that remarkable flavor profile. It was Asian first fill American oak barrels for at least two years and made within Nashville of over 51% malted barley, about conus. Texas Bok will be bottled at 50% ABV and will be priced around $40. It will also be available for sale at the distillery and retailers throughout Texas and Oklahoma for a limited time and keep it on that Texas trailer bourbon. The garrison brothers bourbon distillery out of high Texas is releasing their garrison brothers bowl Maria bourbon. This bourbon is aged for four years in staves that have been dry aged for at least 25 months in the Ozarks. Then the liquid was transferred to a second new American barrel and aged for another year. Of course we all know is re barreling. It is finally bottled for this second release at 115 proof the 2020 bull Maria release
4:00 We'll be around 6000 bottles with a retail price of around $160. Now with more release News, New riff is doing their spring 2020 special release with the new riff back setter bourbon and rye. For this release, new rep really focused on sour mashing process and use the back set from the pizza malted barley in their mashing of their standard bourbon recipe. as they've mentioned, it resulted in a smoking flavor that is hauntingly unique with layers of peat envelopes a creamy spicy bourbon and rye. The back setter to pack will be listed for a total of $99 and 98 cents. And for today's podcast, we're featuring the roundtable it's another yet potentially controversial topic where we talk about the relaunch of the okay AI brand and we examine some of the motivating factors behind it not only just from New Roof but from the new owners as well. We then take a look at the current landscape of craft distilleries and if they will survive the current COVID-19
5:00 conditions. As a personal note, please make sure you're going out there and you're supporting your craft distillers. You're going to hear more about it in the podcast today. And lastly, we also talk about the return of H statements that we're seeing on a brand of knob Creek. We're all excited to see that now as well. Joe from barrel bourbon who wants you to know that it's gotten a whole lot easier to get their unique cash drink whiskies from around the world, just visit barrel bourbon.com and you can click the Buy Now button bourbon to your door. It's as easy as that. Up next is Fred minich with above the char, so continue to stay safe, and we'll see you out there soon. Cheers, everyone.
5:40 I'm Fred medic, and this is above the char. This is not going to be a pleasant above the char if you're someone who is eagerly waiting for the prices to drop because of the pandemic. Some time ago, I was having a conversation with somebody and I saw it also on Facebook and Twitter. This is a considered
6:00 A theme amongst people in the bourbon community talking about how they cannot wait for the bourbon to drop in price to take advantage of the pandemic. I thought to myself at the time, you know, it's it's not a very nice thing to think because if we drop in price, that means people are going to lose their jobs. That means businesses are going to be going bankrupt. That means the bourbon boom that we've known that's kind of helped support this podcast and other cottage industries such as Mint Julep tubers, and r&r limousine Pegasus,
6:38 such as the travel industry that has become Kentucky bourbon trail. That means if all those prices start dropping, and all those wholesale barrels go out on the market for far less than they were, oh boy, yeah, you can maybe get a 160 $5 bourbon for something like 40 bucks, but you know what, and also means somebody can't feed their face.
7:00 Family, that means somebody is going to be out of work that means that the industry that we have known and love that has been thriving and growing is on its way to a major, major decline. But when I first saw that I was just kind of just kind of like ignored it and kind of moved on. And then people like jack rose and silver dollar started putting up their products for sale out of survival. And I was like, wow,
7:29 okay, I get it. We're going to be okay, we're going to be okay. But as many of you know, I am also an active
7:38 an active vintage, you know, buyer and I'm always looking for the market for like, you know, rare gyms. I was having a conversation with somebody
7:48 about a week ago. And I was talking about like, all the lots that are up for sale. And he says, You know what, I'm going to wait just a little bit longer, a little bit longer. When people
8:00 People are much more desperate.
8:03 And I don't know why that bugged me so much, because that is a part of business when you are someone who was looking to buy something you do want to buy when the person is, you know, willing to sell for the least amount. And that just bugged me. And I'm not saying that we should. We should be overpaying for things in the vintage market. But I believe in fair markets, I believe in fair market value. I believe in paying for a rare bottle of dallying bottle and bond.
8:35 I believe paying for what it's actually worth and not waiting for someone to they can't feed their family. I think right now what we have seen in bourbon, to a lesser degree, but what we have seen with this pandemic, we have seen people for who they really are. We have two sides that are constantly bickering and fighting over how we should deal with this and blaming one another all the time. And then you have the
9:00 Majority of America right there in the middle trying to figure out what to do. And it seems we also have those who cannot wait for you to hit rock bottom so they can buy up your collections. So, if that's you, or if you know someone like that, I asked you to please not be that way to change your mind to think of this as like a moment of a human just being human. If somebody comes to you, you know, for you to buy their collection, or to buy a bottle, you know, even if it's out, you know, encourage them to do illegally, of course, but be fair about it. Be fair about it, because you don't know what that money can mean to that person's family.
9:48 And that's this week's above the char. Hey, if you have an idea for above the char during this pandemic, hit me up on Twitter, Facebook or Instagram, just search for my name, Fred MiniK. Cheers.
10:04 Hey everybody and welcome to the 44th recording of the bourbon Community Roundtable. We've got a lot of people joining us live tonight as we discuss a good popery of What's New in bourbon news. And thankfully, we won't have to talk much about COVID because that really hasn't really impacted much in the bourbon world. Everything is just kind of status quo. There's a few hints of releases coming out however, I think it's actually a good thing that hasn't happened because it keeps people away from going out and running and chasing bourbon right now in a time when you shouldn't be probably doing that. So everybody's kind of being a little safe. Ryan has your purchasing habits for bourbon decrease now? Yeah, all my funds have allocated towards to go margaritas swirl Margarita.
10:51 We do those carry out Margarita is like three times a week. It's like when we first started they would just give you the Margarita was in a straw and you're like, Oh well, you know
11:00 I guess I'd have in the car on the way home and then and then then they went to we can't give you a straw and you're like, Okay, so I start bringing out straws. And then they went to you have to order an appetizer when you get it. So now it's a, which is fine. So just get the chips and walk with it. But the swirl Margarita mojitos if you're in mobile, excellent. There you go. So that's what you've been spending your money on. I actually bought my first bottle in a while today I saw I went to my local store to go and buy some things. Oddly enough, I had to get more tequila because we are running low because of margaritas and such and considering we just kind of had, you know, Taco Tuesday and everything like that. And, you know, cinco demayo. So I think the one thing that I did buy was the the makers 101 that new like fancy box. So look for that in a whiskey quickie coming soon at some point when we can Yeah, exactly. So let's go ahead and let's, let's kick it off tonight because we've got a lot of good topics as we start diving into this. And so I'm gonna go with the person that that
12:00 In the middle towards the bottom you start with Brian Harris sipping corn everybody where you blog and then let's start with a fun fun question night indeed believe in ghosts yes I absolutely believe in ghosts and maybe I'll write a there's some whiskey blogs that I might need to do on on ghosts but they're they're true find me at sip and corn mostly on Twitter also Facebook and Instagram and online the the website is sip and corn calm you can also find it at bourbon justice calm. Thanks for having me again guess of course. And let's go to our good friend Carrie over here Carrie. How's it going? Good. Thanks guys for bringing me in tonight. Carrie from suburbia calm. It's up to you our bi a. You can find me on Twitter at bourbon underscore gamer and Instagram at suburbia. And yes, I absolutely believe in ghosts. And sometime when we're off on a tangent, I'll tell you all about the stories growing up in a house in Atlanta, that was definitely haunted.
13:00 Okay, well, I'm sitting on pins and needles can't wait.
13:05 Call me later, right? Yeah.
13:07 All right, Nick, your turn. Hey, everybody. Glad to see everybody tonight. I'm Nick one of three founders of breaking bourbon. Find us online at breaking bourbon calm and check us out on social media. All at breaking bourbon. We're on Instagram, Facebook, Twitter, Patreon and now, tick tock so throwing up some videos up there too. And you gave in. I'ma be like, yeah, I joined you guys. We joined you guys, but I guess I'll burst the bubble here. I'm not a believer in ghosts myself. I like a good ghost story. But that's about as far as I go. So all right, Blake, you're up, buddy. All right. I'm Blake from burner and toolbox calm. You can find me on Instagram, Twitter, Facebook, that's Bo you are Bo n r and then seal boxes. S e lb a CH
14:00 And I'm actually you know, let's see. Where's the vote Ed? I don't know for split but I'm with Nick on this one. Yeah, that can't can't go down that goes throughout. You know, maybe it was too many like, corny tours as a kid through St. Augustine, Florida, which is about 30 minutes from us that that did be in But no, if, you know, they've made 10,000 TLC and discovery show TV shows about it, they still can't track it down it goes, I'm gonna go ahead and say they don't exist. So
14:31 few more of these Bourbons, so and you never Yeah, you're right. It doesn't exist, but I can go to Instagram and see that it does exist. So that's
14:41 20 says the truth is out there. Ryan, did you believe in ghosts? Uh, sure. I don't know. Yes, Ghostbusters. Like one of my favorite like movies. So like, I gotta believe in it. You know, I had the whole you know, backpack and like thing you slide out and catch them. So right yeah.
15:00 I'm all for them. I mean, it just kind of makes me wonder if like bourbon and Ecto cooler would be a good combo then. Hey, I'm all for it. I mean even remember Ecto cooler that was like the the with Slimer. Like that was that flavor back in the day? Oh, shit, I was good. All right, so let's kind of move on to our first topic because I think this is one that is a little polarizing. And so this is something that has recently happened is that okay, I the brand that was originally owned by new roof and kind of what put new roof on the map is really kind of recalls they were putting out anywhere between 10 to I think like 14 or 15 year old 36% higher I MGP towards the end of it. We've had Ken Lewis of new riff on the podcast before telling his story about how he bought those barrels when he was still when he owned the party source up in Northern Kentucky. And then he finally found a way to be able to turn that into another business and then sell those as a way to kind of you know, really got
16:00 To get the launching point going for a new roof now what we found out is that the is that new roof has sold off the brand. And it is now being owned by two people. Then it also started the
16:14 blank. We're just about before we started the what were the brands where they started ramus Yes.
16:21 Yeah. What was the other? I don't know. We just we just totally blanked and we're terrible. I'm terrible hosts that I shot.
16:27 volstad except the one. Well, it was there's the Jordan grants George Freeman. I really want I know of offhand, but exactly the MGP burn. Yeah, MPP bought it from them. They got 16 from them. So let's kind of break this down a little bit because the one thing that that I'm kind of looking at this I look at it in the first aspect and I'll kind of throw this out there is why would new riff want to sell? Okay, I Well, I mean, I think that you know, they've kind of made it clear that they want to be all about the district.
17:00 They waited those four years. Okay, I served this purpose. So why not cash in on it? You know, I don't know what the you know usually go on like a base of
17:11 sales multiples and that kind of thing for a brand. So this is probably a little bit different, but we talked about it a little before of, it's kinda like the black Maple Hill, you know, black Maple Hill was this old brand. That
17:24 I guess was it originally with kbd? Or will it in a, you know, the people out of California bought it and it dropped out of quality? Then it moved to Oregon in. I can't tell you how many people say, Hey, I found a bottle of black Maple Hill and it's like, well, is it in a short squat model? Because you're not going to want to drink it for 100 bucks. Right? But that but that business model works, you know, people they've heard about this brand, it's got a little clout in the community.
17:51 So why don't I go ahead and and, you know, put some more bourbon in it. But I get that i think i think my my question is
18:00 Why would why would new ref and why would Ken Lewis actually want to get rid of something like they had something for so long it was it was successful. There's nothing that said they couldn't revive it years down the road. Why would they just take it and sell it to somebody else like it? That's one part that I'm still trying to figure out how to understand here. So I think they I think originally actually dug up I was looking around at websites actually dug up a website that's that's still out there. And it's new riff I think their old website I'm going to share it up here on on YouTube but it's got a whole kind of page dedicated Okay, I I'm not sure this is supposed to still be up or not on the web. But you know, I almost feel like they've kind of at this point realized their success with new roof is so strong that that idea of ever going back that okay, I brand as part of new roof. Maybe they've just gotten to the point where they said we just we just don't need it. That's not part of the vision anymore. You know, the idea was it was always going to be a short term brand.
19:00 I think but I get it, you kind of hold in your back pocket just in case you know, 10 years 15 years down the road, you may want to reintroduce it. It's almost as if now they're looking saying you know what, we're not going to do anything with it. We still like the brand if we've got people that are interested in taking that brand to a new height, we don't want it go ahead guys. You guys take it and we're doing our thing over here. So I think it's a lot attributed to numerous success that they've had now in the idea that there they probably don't plan on putting any resource into Okay, I or didn't for a long time and they're saying if somebody else is going to so be it, take it we'll take a little money and be done with it. Yeah, I agree with that. I mean, they think about the single barrels that had a lot of success in 2019 and a lot of them were new riff I mean they're they're proud of what they got with good reason. To me you know, think of another example Who else could do this and it's smooth Ambler. It's like smooth Ambler getting rid of old scowl once they have their own distillate. That's that's a bigger scale, I think and that would be really surprising if they ever did that.
20:00 That's the same idea once you're once you're proud of your own distillate and your own product you move toward that and and help keep the lights on by selling a brand did that did okay I ever get distributed outside of Kentucky Ohio and Indiana
20:18 the small that it wasn't much outside was it? I don't think so. I think Yeah, I was like the tri state area was what they had like 50 barrels in total right or it wasn't like there was massive amounts was there dudes a finite number of barrels they started with and that was always the idea was it was just going to fun there next thing you know it's never going to be a brand that continued in it was never going to be a brand new we're going to go try to source more to somehow continue at least that's what the how the story goes. Yeah cuz new is made its way now and it's coming to Georgia. And yeah, I feel I kind of with Brian. On that whole thing. You put your initial investment into that that one company but once you see that you
21:00 your heart and your soul is in the product that you're making and the label that you're proud of. It's like, what's the point of keeping behind? You know, I mean, money speaks at the end of the day, right? So, you know, you make money from selling that label, why not? Yeah. And then the last time we were there, I mean, they got a ton of like, expansion going and building stuff. And it's like, they probably could have used the cash. You know, the capital. I mean, I don't know how lucrative of a deal it was just to sell the brand off. But it might be to to meet some short term cash needs that they need to, you know, keep growing the new roof brand and it's like, Hey, you know, Hell, I can't tell you how many Okay, I bottles I passed on like, just because I was like, I just MGP again, you know, who? Stupid me But uh, yeah, I mean, I don't know. I mean, it probably. I don't know how valuable that brand is really. I mean, it's somewhat noticeable. But I'd say in the grand scheme of thing it's not, you know, that well known of a brand in the grand scheme of things. I mean, we as hobbyists, we know, aka Okay,
22:00 All right, I want to go out and ask 20 people, you know, if they've heard of it, they haven't heard it yet. I can tell you people were like, okay, that, okay, bring it,
22:10 bring it to a big market and see if anyone knows anything about it. And yeah, I don't think they would, I think they're gonna have to put a lot of effort into it to really get the snowball rolling again and take it anywhere from from where it kind of is sitting right now, you know, beyond that, the tightly knit enthusiast market, but I don't think it has that massive, you know, appeal of like other big brands, but it's an easier story to tell of, you know, where it came from, and people kind of, oh, have you heard a new riff and you know, it kind of it. For me, it's just an easier segue for retailers to explain to customers why they're charging $120 per bottle, but yeah, we'll see. And so I kind of want to put a thought in about, you know, the whole sales aspect because I look at this, as let's rewind the clock back like
23:00 I'd say a while ago, you know, when other brands were basically doing mash trading of labels and distilleries to basically stay afloat. And Ryan, you're probably right. Maybe this was something to get a quick cash grab, because who knows in 10 1520 years, if anybody's gonna care about it, but it could also be in 10 2015 years, when people like us for like, holy shit, it's back like, Oh my god, right? Like, we would have like a party about it. This is just kind of like, Oh, this seems a little weird, right? I mean, yeah, it's weird. And it's like, if it's just two guys doing it, and you look at a business venture out of it, like how much do you really think they paid for it? 10,000 20,000 If you really think they paid like $50,000 for this brand. Oh, I was thinking at least 100,000 I was thinking 100 myself too. I was thinking I was I was also thinking New Roof might they might have told this story. You know, these guys might have told a story. This is our plans with it. And that could have been something that the folks at New riff kind of said okay, we're kind of seeing the vision.
24:00 And we're, it's not just about the money, it's about the idea that you're going to do something with this brand that we're never going to do and that we don't want to do, and don't have any plans to do. And that might have been part of it too, because they did talk about kind of retelling that story and, you know, doing some things with this brand to kind of revitalize, which obviously, they need to do. But that may be part of it as well be really interesting to know what was paid for it. Yeah, gosh, I wouldn't think I just couldn't imagine paying more than, like, 25 $30,000 for it, but maybe I'm wrong. I don't know. I just think I think I see. I'm trying to think of like a I'm just trying to think of like percentage of business that limited releases are you know, for for Okay, or anyone and it's not that much and then you're trying to think about the margin you make on that and I'm like, okay, that just doesn't seem like a valuable that much. Like, I wouldn't pay much more than that to to profit off that name, I guess but maybe I don't know. I'm an idiot. So who knows? When they're when the bottles come out and see how expensive they are? Then you'll know how much Yeah, you'll figure it out. Really quick.
25:00 Yeah. And so that kind of like tails and dovetails in the next part because we we look at this from our perspective and our perspective as enthusiasts and also keep this in mind. Nobody gave a shit about Okay, I until the MGP. hype train started. Right, right. I mean, it was around for a while some people were getting some bottles, they were 1213 years old people like that, then all of a sudden the MGP chasers came around, cleared those out, then kept going and moving to the next distillery until every distillery is basically cleared out of this high aged MGP. So one thing that people have to understand is that this will not be the same product as you had before. And if you want it to be that, maybe you should not buy a bottle and wait additional 10 years, and maybe it'll be there because we all know that what's available in the market today that you're going to get from a GP is probably around five years old. If you're lucky, maybe six. And so I guess we we look at this and we think like okay, if you are going to be under new ownership with this, how like what is that price point do you think that you need to be at
26:00 Do you look at this as like a pure speculation of just like, hey, let's just ride the coattails of a brand that was known by a bunch of people in a bourbon community in the tri state area, and then try to make a national brand out of it. But what's that? What's that price point got to be at to be able to do that? And how do you stay competitive against everybody else in the market? Who's pushing MGP? Because you're not you're not you're not unique anymore? Let's keep it to say they're gonna be MGP, though. I mean, oh, you know that? Yes, because it says it in the press release that they are sourcing. 36% high right. MGP to do this brand, they're not steering away from what it was before. Yeah, you gotta be at like $100 or more. I think $40 is a good price point for if you're looking for something that you want to say I want to take it national, I want this to be just about every state or every state. It's somewhat similar to other Bourbons out there, you're going to buy it because the flavor because the label, maybe the story a little bit, but I think $40 is kind of that sweet spot where you're not
27:00 so high that people are just going to ignore it and bite your high enough that they're going to look at it as an elevated brand out there so if they're putting out a $40 bottle and it's hitting everywhere I think with the right marketing behind it and a decent flavor decent age I think they I think they could do it and make it something like like smooth Ambler we're seeing that coming coming back now and that's at that price point. For example, you know if they want to go higher if they want to go into this 70 hundred dollar range they're gonna have to really we've quite a story I mean, think Kentucky owl kind of you know, they're gonna have to source some stuff that we didn't really know was available to source or that was, you know, kind of a surprise to kind of hit those higher numbers or they go above 100 but be interesting to see if they kind of go towards that limited premium side or if they go towards that make it available to everybody side on that lower price. I think you guys underestimate the ridiculousness that people will pay. Yeah, or ridiculousness. Well said I always think of my head.
28:00 Is that heaven store? bourbon. That was that total wine? I think it was like 399 or 499 I'm sure it was sourced from somewhere. Maybe MGP have a bootleg one. Yeah, the one that was like it was like, seven years. It was like 27 years old. No, not that one. It wasn't that old. But it said something like, here's heading included a guitar string from somebody and had a leather bound notebook and and it was 499 and I'm thinking nobody's gonna buy that this is bullshit. And a week later, all three of them were sold out. You know, I think it's, it's, this is the ideal market. If you want to push into you know, marketing bullshit. This is the market for it right now. People are gonna buy what you put out. And all you need to practically do is charge a high price. Yeah. And a fancy bottle. Fancy bottle has got instant prestige and there might not be anything to it. Yet
29:00 Yeah, as the comment is right now just put a horse on the bottle and it's
29:05 that's it. I think this is a mark. It's a perfect mark. Well, you know, Douglas Pendleton put it in the chat. Price dries perception. And that is extremely true in today's market. It's like, well, it's under dollars. It's gotta be better than the bottle. That's $50 Yeah. Why would they only charge 50? If it's worth 100? Yeah, cuz they had to pay $200,000 for the brand, right?
29:30 It just went out and he says the price is double Blake. Yeah, just double. Yeah, I mean, the one thing that I see this and this is just from a pure whiskey perspective, is that we've we've seen this story before. And we've seen and we've tasted this whiskey before. And we know a bunch of different places that are putting out five year MGP 36% high rye, sorry, all it's not ready yet. In my opinion, it's still not there. And I think there's still going to be a lot more time that needs to go into the barrel to actually make this live up to the hype.
30:00 what it was before and so you're gonna have the same exact people that are getting burned by the same products and then it's just gonna be history repeating itself. Yeah. Are y'all ready for the big reveal? It's me and Kenny who bought it?
30:17 totally get it
30:21 opens and it's $1,000 is that is that pursuit release 340
30:27 Yeah, episode
30:29 together. Yeah, we're getting our own boxes that have like hydraulic lifts in it that just like raise it up three inches so you can take it off its pedestal. They're they're holograms of Kenny's tic Tock videos.
30:42 We've got to take the sticker game to the next level, right? We've just had to figure out how to do that to make people really want to know what's what took the sticker game to the next level and is underappreciated is gifted horse. It was a terrible whiskey. But did you know it was Scratch and sniff? Yeah, I don't know if everybody I can't believe you.
31:00 Nobody I can't believe no one else has done that after that because it's such a crazy funny idea to me. I want a bottle just so I can have a scratch and sniff label again, like I don't even care that the whiskey sucks. I want gifted horsetail. man you love orphan barrels, I do like a round table Buffalo Trace for a gifted horse. It's worth $140.
31:23 Get on it, man. Make it happen if you can. Alright, so let's let's kind of move on to the next subject because this one is it's kind of a sore subject. This is definitely dealing with COVID and everything that that's been going on because according to a survey that has been released by the distilled spirits Council of the United States, as well as the American distilling Institute, with a survey of 118 craft distillers they found that two out of three have worried not only about the short term, but also the long term survival of their business. And 42% believe that they will not be able to stay in business for more than three months, and another 21% of worry that they will go out of business for the next three months. And I believe
32:00 We've also said that 43% of all craft distillery workers across the US right now have either been laid off or furloughed. So we look at this right now that we're potentially in the craft boom bust. Now, the the question for you all that I kind of have with this is that in a capitalist sort of mentality and opportunity here, why aren't more big players in this game, trying to swallow up craft distilleries? For dimes on $1 right now?
32:33 Before before y'all Sorry, guys, y'all know a lot about this, but I just have a question do they say? I mean, did they say why? They're struggling because it seems like the spirit tree is booming, right?
32:47 Yeah, local distilleries, they own their yard. So like they really depend on tours and, you know, local events and tourism. You know, I was I was digging into that more to carry because everywhere you're seeing is how
33:00 All sales are up, and you've seen it all over the place, if you're not seeing it on the news, seen it with people, you talk to just your friends and family and so forth. You know, I was looking at that too and started digging around a little bit about that, and kind of found this this whole kind of changing dynamic of this idea that people aren't buying on premise now that they're buying from the online retailers or some of the big brick and mortars you know, for the most part, and that's that hurts. They're basically the these craft distillers or major margin is what they're selling on premise with their bars, the restaurants, the stuff they're selling directly with the bottle, so where they're seeing their profit is basically dried up, even though they might be still selling some of their product. But then a lot of that stuff being bought online is the big name, lower price kind of stuff that people are just, you know, kind of repetitively buying. So all this crap stuffs going to the wayside. And these guys are sitting on a lot of them and insane amounts of debt that they need to service and it's a very short it's really pretty sad. I hope they don't
34:00 Go under to the you know, to the extent that it looks like they could, but it's a very short window for them to either survive this thing or not survive this thing.
34:08 I didn't think about how much is that how much of their revenue is from people coming in and on site? So they make a lot of their profit derivative. Yeah. 30% is a pretty conservative estimate for most craft distilleries have tasting rooms.
34:25 And, you know, they have a bar and that kind of stuff, it could be even higher. And, you know, so all that's just gone out the window. So they're kind of making up with it with hand sanitizer trying to, you know, do what they can into next point. You know, whenever people are buying for a pandemic, they're grabbing, grabbing fodder grabbing. Yeah, I think I think that's a good point. It's like, people are drinking more, but they're not, you know, like one seven fives of like Evan Williams, and that's what they're, you know, that's what most people are grabbing for. They're not going for the higher price craft stuff. And so it's a and do it like
35:00 You know people are buying alcohol but you know, restaurants and bars are like zero. And so they you know, a lot of the tastes like you all said the tasting rooms and visitor centers, you know that these guys depend on or just it's gone from to zero and so and I don't really think they're getting any help either I mean the PPP stuff goes to two employees and a little bit to rent and that's not their expenses I mean they they have a lot of suck sunk and expenses that they're just not really getting anything from the government on here. Yeah, you know, their revenue and they've still got a, you know, fun that Vendome still and their construction costs and everything else there. I mean, it's it's serious. I agree with Matt. Matt's comment there that hand sanitizer production has kind of caught up now. Yeah, yeah. So what do you they don't need to do that anymore, either. Yeah. And they struggle with that, too. A lot of regulations were tricky. A lot of them ended up making it and not even really being able to sell it.
36:00 They just, you know, made it a lot of pro bono. And a lot of cases that really wasn't a moneymaker per se. I think they just got stuck in a place where they didn't really need to produce whiskey and they were trying to help and, you know, trying to keep staff. Yeah, and a lot of these places have a pretty low staff count to, you know, to Brian's point. There's not a lot of people that work in a small craft distillery, usually, a lot of times, it's actually just the owners, maybe that are that are working there. You know, and they're there. A lot of times they have just an incredible amount of debt to service that even in a perfect world when everything's going well. It's a hard business. So you just you just pull out one little piece, you know, it's like a thing of Jenga pull out one piece the whole thing's gonna topple. And it's very, very well could be the piece I'd be curious Blake, what you're seeing on the sealed box side, from the, you know, kind of like the online sales side there and people approaching you from the craft distilleries. I mean, what's kind of been your feel for these folks that you are
37:00 pretty well. Yeah. So a lot of them are, you know, definitely feeling the feeling the effects of it. Most are making it but most are making it we got it. Yeah, no, no, I'm like, What can we send Blake an arrow or something? Like, uh, I think it's I think it's fun for my computer. Oh,
37:20 it's a ghost behind you, Blake. I left the podcast almost two years ago and Blake's internet still stayed the same.
37:30 So true. True. I, you know, I, I would say as much
37:35 as this has been damaging for so many small businesses and restaurants and bars and distilleries, and etc. I kind of feel like maybe we're getting close to good news starting to prevail and hopefully coming out of this thing within a month. I mean, you start to look at at least here in Georgia, we buckled down March 14 is when pretty much everybody
38:00 Went indoors and
38:02 our hospitals are at a very low rate right now. And I'm just hopeful that we can kind of come back out now and support these craft distillers I know that right before everything hit the fan. wilderness trail was distributed here in Georgia. And I kinda was just very curious to see how their sales went. And my local store had bought a couple cases of their they had the weeded the regular bourbon and the the rye. And all of it has to has sold pretty well. He said he's ordered more of it. So hopefully, we can get out of this thing and get back to these craft distillers. This is the one thing that that kind of strikes me a little bit. So I'm sitting here I'm trying to read the chat. And there's some people that are saying like, oh, like, it doesn't matter, like their whiskey sucks. It's too young as to whatever. Like this is the this is the moment this is the movement that we need, unless you want to keep drinking the same whiskey from the same six distilleries for the rest of your life. And I think that
39:00 Blake made a very good point in his presentation that he did at whiskey from home during that that online conference and saying that if you're buying craft whiskey, you're not trying to buy something that is just as good or comparable as the big guys. Instead, what you're doing is you're trying to get something that makes you drink or taste something different, right? Like you're finding either new grains, you're finding new ways that the they you know, they put it like a different age proof or they you know, they did whatever it is different because we all know that if you go to heaven Hill, or you go to a beam, you go to these different places. They've got, you know, like one, two, maybe three or four recipes, and they are cranking out stuff like on that still 24 hours a day. They're not changing. They're not experimenting, right? And so it's it's really hard for you to sit there and try to figure out like, okay, like, I hope your palate or your taste doesn't change over the next 1020 years because that's essentially what we're going to get. And I know it's been a bad rap on a lot of craft distilleries that they get, you know like in this, this, basically
40:00 pigeonholed in this part where they said like, oh, sorry, Your whiskies too young. It's two, three years old. And it's, you know, it doesn't meet my flavor profile. I get it. I'm kind of with you there. But we've got to be able to give them a chance to be able to get to the point here at 5678 910 years old when this whiskey is really going to start being mature and it does taste phenomenal that we've got a lot of options out there as consumers. So yep, yeah.