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THE WORLD OF LIQUOR

P 11 ]Fri ri India's Most Widely Read Alcobev Magazine December 2014, Vol6, No 5

urbon on the upswing

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ourbon whiskey is emerging as a new choice for a growing number of whisky lovers globally as well as in India, albeit a bit slowly. Indians’ changing whisky habits have created

opportunities for the whiskies from different parts of the world. And, the barrel-aged American whiskey Bourbon, primarily made of corn and carrying a subdued caramel flavour, is definitely getting experimental consumers who have so far been hooked to Scotch or desi whiskies.

The most significant indicator of Bourbon’s growing presence in India comes from the move of the world’s third largest whisky powerhouse, Beam Suntory, to bottle its flagship Bourbon, Jim Beam, in India. This is a rare instance of the largest selling Bourbon being bottled outside its home market US, underscoring the significance attached to India, the biggest consumer of whiskies. The 200-year-old Jim Beam sells 7 million cases annually, competing with Scotch whiskies worldwide.

The development on the Bourbon front has been noticed by both the national and international liquor business and F&B people with whom Spiritz interacted for this story.

Of particular mention are the views of two veterans of international liquor business, James Espey, a staunch Scotch man and Sazerac CEO Mark Brown, a diehard Bourbon man. Both concur on Scotch’s current supremacy of the global whisky market but also see good prospects for Bourbon.

In the words of Brown, “Scotch whisky has established a formidable lead in the race to become the consumers’ choice for whisky. But we believe ultimately product quality, taste, approachability and mixability of Bourbon will enable us to erode that advantage.”

For Espey, “Scotch is the gold standard for whisky all over. Whenever markets open up, be it China, Brazil, or Africa, it is always Scotch whisky that people first go for.” But taking a realistic view of Bourbon’s recent growth, he says, “In more recent years, however, we have seen some real craft Bourbons emerging and people are suddenly realizing that there are some wonderful Bourbon whiskies and like all fine whisky.”

Though Espey is “convinced that at some point in time India will be the world’s No. 1 Scotch whisky market,” he doesn’t discount Bourbon prospects in the country where “there is a great future for quality imported whisky, in which Bourbon will play its role.”

Both Brown and his company’s International Sales Director Guy May also visualize a great Bourbon story unfolding in the Indian market. About their experience in India, May tells, “In the whiskey category, our Benchmark Bourbon has appealed to Indian consumers who are interested in entering the Bourbon category.”

From the Indian industry we also get inputs which point to an Indian Bourbon story in the making. Raphael Rodrigues, Food and Beverage Manager, Holiday Inn New Delhi Mayur Vihar Noida sums up the contours of this story in these words: “The number of consumers looking for newer variations of whiskies is growing steadily. The sweet and versatile Bourbon blends are now competing with Scotch whiskies and Indian whiskies.”

Mixability is one important characteristic of Bourbon which is attracting women and youth towards it in hordes because women love cocktails and the youth look forward to experimenting with their whisky. Neeraj Kumar, Director, Marketing & Sales – Beam Suntory, explains this phenomenon: “Bourbon whisky is emerging as a great alternative to other whiskies for new consumers who prefer mixing whisky with cola, ginger ale and

in cocktails. The Bourbon category is growing thanks to great support from mixologists and bartenders across India’s trendy bars, who use popular Bourbons like Jim Beam and Maker’s Mark while creating whiskey cocktails.”

Bourbon’s cocktail advantage is also highlighted by Ravindra Kumar, GM – Corporate Food & Beverage, The LaLiT: “Bourbon is not a very strong flavoured whisky as compared to Scotch whisky. Hence, it’s easy for bartenders to marry different flavours with Bourbon and come up with excellent classics on par with Manhattan, Old Fashioned, etc.”

The easy-going Bourbon taste is also finding favour with lots of Indian whisky lovers. Ankur Chawla, Beverage Manager, JW Lounge & Oval Bar, Akira Back, JW Marriot Aerocity, Delhi, elaborates on the taste aspect: “Bourbon is probably the easiest whisky to adapt the taste buds to. It’s commonly appreciated as subtle, sweeter and easy to drink than Scotch. It has less complex aromas which makes it popular amongst new drinkers.”

Young drinkers and their increasing presence in night clubs are a big push

for Bourbon growth, as Sandeep Singh, Assistant Director – F&B, The Leela Ambience, Gurgaon, tells, “The young generation and the well travelled people do have an inclination towards Bourbon whisky. Scotch connoisseurs generally do not prefer to have Bourbon. Their general reaction is that Bourbon is for youngsters and the real whisky for men is Scotch and single malts.”

The start of bottling by Jim Beam of some of its products in India is a sign of good things in future for Bourbon. There can be no better way to explain the import of this development than the words of richly experienced Espey, “Jim Beam clearly has a vision for India. Its bottling locally in the country will make it much more affordable and I am sure they will do well. If they establish a category for Bourbon in India or elsewhere, it will open the door for the more expensive smaller brands to ride on their coat tails as people trade up.”

The tidings seem to be in favour of Bourbon and with the less expensive Bourbon being made available easily in India, Scotch might be looking at a serious competitor in the years to come.

Vijay Chawla

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What is Bourbon whiskey?Bourbon is the popular of native whiskey of the USA. Traditionally, it is distilled in and around the present-day Bourbon County in Kentucky. The region takes its name from the Bourbon dynasty, a royal lineage that ruled various European countries intermittently during the past 500 years.

While Bourbon whiskey has its roots in Kentucky, and continues to be primarily produced there, it is now manufactured in distilleries all over the United States. Whiskey manufacturers must meet the following law-ordained requirements to advertise their whiskey as Bourbon:

• Produced in the USA.• Made of a grain mix of at least 51% corn.• Distilled at less than 160 proof (80% ABV).• No additives allowed (except water to reduce proof where

necessary).• Aged in new, charred white oak barrels.• Aged for a minimum of two years.

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A GROWTH STORY IN THE MAKINGBOURBON

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n India, Bourbon whisky depends a great deal on new whisky consumers and mixologists and bartenders for its growth. That’s the impression one gets while talking to Neeraj Kumar, Director, Marketing & Sales – Beam

Suntory. Kumar explains, “Bourbon whiskey is emerging as a great

alternative to other whiskies for new consumers who prefer mixing whisky with cola, ginger ale and in cocktails. The Bourbon category is growing thanks to great support from mixologists and bartenders across India’s trendy bars, who use popular Bourbons like Jim Beam and Maker’s Mark while creating whisky cocktails.”

According to Kumar, Bourbon’s versatility is a great pull for “new consumers who prefer the Bourbon flavour over the traditional Scotch whisky taste. Due to its great versatility Bourbon can be enjoyed by mixing it in many ways – with water, ice, soda, cola, ginger ale and as a cocktail.”

At a time when acceptance of Bourbon is growing in India, Kumar is “excited at the prospect of Jim Beam building this

category within Beam Suntory’s India portfolio. As the world’s No 1 Bourbon, Jim Beam whiskey is positioned well to create this category in India. We have introduced Jim Beam white label at an attractive new price across key markets like Kolkata, Bangalore, and Gurgaon and will progressively go to other cities.”

At present, Beam Suntory offers Jim Beam and Maker’s Mark Bourbons in India, and its Red Stag and Devils Cut are sold at duty free stores in the region.

Regarding the efforts for popularizing their Bourbon products, Kumar tells, “We are focused on making sure that bartenders and mixologists have awareness and are trained to offer the best Jim Beam can offer.” As part of Bourbon promotion, they have showcased the Kentucky Chew food pairing across select on-premise accounts. Initially Beam Suntory will focus on the top 15 cities and will expand its reach gradually.

In the USA, Kentucky distillers are coming up with premium small-batch Bourbon offerings or putting new twists to their recipes and flavours. When asked about Suntory plans to replicate these offerings in India, Kumar responds, “It’s still early days. We have seen great interest overall with the flavour innovations made by Jim Beam in the past few years. We will be keeping a keen eye on this trend for India in the coming time.”

Neeraj Kumar

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Bourbon in India’‘Jim Beam best placed to grow

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ourbon whiskeys have a good following amongst female drinkers. This observation, which may be music to the ears of Bourbon importers, comes from Sandeep Singh, Assistant Director – F&B, The

Leela Ambience, Gurgaon. One possible reason for the female liking for Bourbon could

be its use in cocktails which women prefer to have instead of straight drinks. “Bourbon whiskey is a wonderful mixer for cocktails. It mixes well with a wide range of mixers as compared to Scotch whisky. It is smoother in taste, so for beginners it’s a good whisky to start with,” explains Singh.

The Bourbon push in India is mainly coming from the youth, as Sandeep says, “The young generation and the well travelled people do have an inclination towards Bourbon whiskey. Scotch connoisseurs generally do not prefer to have Bourbon. Their general reaction is that Bourbon is for youngsters and the real whisky for men is Scotch and single malts.”

Though fascination for Bourbon is growing, Singh feels,

“Bourbon whiskey is still very much a good bar drink and so is restricted to only a set of few people.” Apart from Indians’ traditional love for Scotch, another factor responsible for this situation is “There are not many Bourbon brands easily available in the market so as to enable people to try and develop a taste.”

However, Singh sees good prospects for Bourbon growth. “We are considered more of whisky drinkers than wine/beer drinkers. India has immense potential for Bourbon growth. The only way to be in the market is that people should be aware about Bourbon brands. It can happen through good marketing and conducting training workshops for industry people and consumers.”

When asked about tips for developing a taste for Bourbon, Singh tells, “Generally people like to have Bourbon with coke. Some people like it with a cube of ice and little water. I think the best way to try Bourbon is to have it neat so that you can get the real flavour of this whiskey.”

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‘The young riding the

Sandeep Singh, Assistant Director – F&B,

The Leela Ambience, Gurgaon

Bourbon bandwagon’

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n India whisky is no more synonymous only with Scotch, feels Ankur Chawla, Beverage Manager, JW Lounge & Oval Bar, Akira Back, JW Marriot Aerocity, Delhi. The reason given by Chawla is the recent growth

of Bourbon whiskey which “is something that nobody can deny. I have seen my guests lately even asking for a particular brand of Bourbon, which was never the case earlier.”

Chawla attributes the growing popularity of Bourbon to increase in the knowledge of whisky drinkers and their tremendous global exposure. “Our guests know much more and even are ready to try much more than they used to,” tells Chawla.

According to Chawla, many of his guests are fascinated by Bourbon taste and notes. “Once I asked one of my regulars for his reason to have Bourbon over Scotch, his reply was he wants his whisky to be a little subtle, sweeter and easy-going than Scotch,” reveals Chawla.

However, he feels, “Our palates are, to a great extent, biased towards the peculiar flavours of Scotch. Changing

that is something which might not happen for all the guests. Also, it’s more a matter of an individual being more open to try something new that Bourbon has to offer.”

Still Chawla feels, “Bourbon is probably the easiest whiskey to adapt the taste buds to. It’s commonly appreciated as subtle, sweeter and easy to drink than Scotch. It has less complex aromas which makes it popular amongst new drinkers. However, Scotch lovers generally find Bourbon a subtle whiskey with fewer complexes than Scotch.”

How do Chawla’s guests prefer to have their Bourbons? He replies, “A few Bourbon brands as part of their marketing strategy have popularized the classic way of drinking Bourbon with Coke/Diet Coke. The same way has also been accepted by consumers at large. However, I would still put my bet only on ice.”

When asked about the factors which brought the Indian whisky lover closer to Bourbon, Chawla lists them as consistent brand presence in the market, aggressive marketing, right pricing, regular trainings for bartenders and staff of the hospitality outlets, and word of mouth. “At times Bourbon drinking also becomes a fashion statement when one wants to show off,” he feels.

Among Bourbon brands that are popular in India, Chawla names Jack Daniel’s No. 7, Jim Beam Kentucky, Jack Daniel’s Silver Select and Makers Mark Kentucky.

Chawla sees a huge potential for Bourbon in the Indian subcontinent and terms the bottling of some Jim Beam products in the country as the right step to realize this potential. “I am sure of the fact that volumes would go up heavily as cost-wise it would become more affordable (due to the bottling in India). I would not be surprised if more companies start following Jim Beam,” tells Chawla. However, he cautions, “It is critical to maintain quality standards of Bourbon products in India to keep the brand value consistent.”

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‘Our Guests Know A Lot About Bourbon’

Ankur Chawla, Beverage Manager,

JW Lounge & Oval Bar, Akira Back, JW Marriot Aerocity, Delhi

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he young drinkers should be the target group for popularizing American Bourbon whiskey in India. One gets this clue while talking to Raphael Rodrigues, Food and Beverage Manager, Holiday

Inn New Delhi Mayur Vihar NoidaTells Rodrigues, “Although the premium Scotch market

in India is growing at 20 to 25 per cent, the younger section of drinkers prefers more of non-traditional whiskies such as Bourbon. With the advent of lounge and night clubs, the whisky drinking has shifted to more of easy drinking mixed or long drinks.”

Rodrigues has noticed this change in the Indians’ approach to whisky drinking at his establishment. “We have seen a predominant growth in our customers’ preference for Bourbon over other whiskies. At our American style restaurant, there has always been a demand for Bourbon.”

Listing the factors which contributed to Bourbon growth, he says, “The number of consumers looking for newer variations of whiskies is growing steadily. The sweet and versatile Bourbon

blends are now competing with Scotch whiskies and Indian whiskies. The freshness of Bourbon and the subdued caramel sweetness and flavour appeal to a lot of whisky drinkers. Also Bourbon is nowadays easily available off the shelf in most retail outlets and prices are very competitive even when compared to a few Indian whiskies.”

Rodrigues terms bottling of Jim Beam Bourbon in India as an important development. “Jim Beam bottling in India will definitely reduce prices and also ensure constant availability which is a concern with imported liquor. India being the largest consumer of whiskies by volume will surely opt for Jim Beam which is selling in retail at competitive prices,” he says.

Among Jim Beam Bourbons, those popular among Rodrigues customers are: “Jim Beam, Jim Beam Black, Maker’s Mark and also Jack Daniel’s though not a Bourbon but due to its sour mash characteristics.”

Regarding his customers’ choice about Bourbon accompaniments, Rodrigues tells, “Our customers tend to have Bourbon with cola, ginger ale, on the rocks or a revelation is to try it with apple juice and lots of ice.” According to him, the Scotch lovers who “taste Bourbon for the first time react negatively as they do not find the luxury of smoothness and peatiness which are characteristics of Scotch.”

For Scotch connoisseurs, switching to Bourbon is a bit difficult. Explaining the reasons for this, Rodrigues tells, “Scotch drinkers are more tuned to the taste of Scotch. They attribute their drink to a feeling of prestige and luxury. Whisky drinkers in India associate fine whiskies with two attributes — “age” and “smoothness” in taste. All of this makes it hard to showcase fine Bourbons in India — they’re almost unknown in social circles. Bourbons don’t require the long maturity of Scotches and hence they don’t market their age.”

TRaphael Rodrigues, Food and Beverage Manager,

Holiday Inn New Delhi Mayur Vihar Noida

‘fascination for new whiskies

boosting Bourbon’

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ou name any major spirits category and it’s unlikely that Sazerac doesn’t have a product in that category. Sazerac is the third largest drinks group in the US, which owns nine companies and 250 products across different spirits categories. Its present CEO Mark Brown has seen Sazerac grow from just a 10-brand company (during his first stint) into

a huge conglomerate. During his first stint at Sazerac in the 1980s he progressed to be the vice president of sales

and marketing. This period saw Sazerac increasing its US footprint and developing a wide-ranging portfolio that included two Bourbons: Eagle Rare and Benchmark, both acquired from Seagram in 1989.

In 1992, Sazerac also acquired the Buffalo Trace Distillery. Around this time, Brown shifted to Brown-Forman’s Select Brands as senior vice president and COO. During the five years he spent at Brown-Forman, Brown worked for establishing Jack Daniel’s in the undeveloped markets like China, Russia, Brazil, Africa and India. This stint also made him realize that whisky is universally seen as a high-end, aspirational product.

In 1997, Brown returned to Sazerac as its CEO. In his new job, Buffalo Trace Distillery and Bourbon are among his focus areas, which he considers as the core of Sazerac’s business.

Sazerac CEO Mark Brown has seen his company grow from a small entity into a huge con-glomerate during his two stints with it. In this interview with Bishan Kumar, Brown talks about Bourbon’s inherent advantages which would enable it grow stronger in competition with Scotch in the international market.

Here is Bishan Kumar’s interview with Mark Brown.

You believe that Bourbon will take a disproportionately large share of the predicted huge expansion of the world whisky market in the next two decades. Which factors form the basis of your belief? I think the following factors will enable Bourbon grow substantially in the global whisky market: • Overall appeal and popularity of

American consumer products, like Coca Cola.

• The appeal of Bourbon itself, which is approachable, mixable, contemporary, and of high quality.

• The incredible quality story of how Bourbon is made, especially the use of only new oak barrels; no colouring or flavoring is allowed.

How do you view Bourbon’s competition with Scotch in the expanding whisky markets

worldwide? Clearly Scotch whisky has done a wonderful job of building on the advantage that the British Empire gave them during the early part of the last century. Scotch whisky has established a formidable lead in

the race to become the consumers’

choice for whisky. But we believe u l t i m a t e l y p r o d u c t quality, taste, approachability and mixability of Bourbon will enable us to erode that advantage

How do you view Scotch as Bourbon competitor in the USA?Really no competition. Scotch at one time was popular in the United States. Today, it has become a much smaller category and with the exception of single malt whisky has not seen growth for many years.

How easy or difficult is it to make a non-American whisky connoisseur, who is not initiated into Bourbon, believe in the qualities of Bourbon like it being very approachable and friendly whiskey, modern image, very mixable and flexible?

We believe it is relatively easy to convert consumers once we have the opportunity to tell the production story, sample them on the whiskey and demonstrate the mixability of Bourbon.

Bourbon Advantage: American tag, mixability, quality

Sazerac CocktailThis is claimed to be America’s first cocktail. Its origin paved the way for the birth of the Sazerac company. These days it’s made in the following way:

Ingredients• 1 cube sugar• 1½ ounces (35ml) Sazerac Rye Whiskey or Buffalo Trace

` Bourbon• ¼ ounce Herbsaint• 3 dashes Peychaud’s Bitters• Lemon peel

Method• Pack an Old-Fashioned glass with ice.• In a second Old-Fashioned glass place the sugar

cube and add the Peychaud’s Bitters to it, then crush the sugar cube.

• Add the Sazerac Rye Whiskey or Buffalo Trace Bourbon to the second glass containing the

Peychaud’s Bitters and sugar.• Empty the ice from the first glass and coat the glass with

the Herbsaint, then discard the remaining Herbsaint.

• Empty the whiskey/bitters/sugar mixture from the second glass

into the first glass and garnish with lemon peel.

YProduct quality, taste, approachability and mixability of Bourbon will enable us to erode Scotch advantage

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The Sazerac empire spans nine companies and 250 products across different spirits categories. The vast Sazerac portfolio has 33 Bourbons, 48 liqueurs and speciality spirits, 46 vodka brands, 26 rums and 24 Tequilas among other products. Some of these products Sazerac distributes under contract in the US by its Gemini Spirits & Wine subsidiary.

The invention of what is called America’s first cocktail laid the ground for the birth of Sazerac. In 1838, Antoine Amedie Peychaud, who operated a pharmacy in New Orleans, used to prepare a drink by mixing brandy, absinthe and a dash of his secret Peychaud’s Bitters for his friends. Later this quaff would come to be known as the Sazerac cocktail. The cocktail immediately became popular at the city’s finest coffee houses, which was the term for drinking establishments those days. The cocktail received its name from the highly popular Sazerac Coffee House, whose owner Sewell Taylor institutionalized the drink at his establishment by using only Sazerac de Forge et Fils brandy, which he imported and sold exclusively.

In 1869, Thomas H. Handy purchased the Sazerac Coffee House and began to acquire and market brands of liquor. He bought out the rights to Peychaud’s Bitters in 1873. In the 1890s his company began to bottle and market the Sazerac cocktail, now made with rye whiskey instead of brandy. In addition, the company operated the Sazerac Bar on Royal Street. Later, Handy’s former secretary, C. J. O’Reilly, chartered the Sazerac Company. Ever since (except for a stint as a delicatessen and grocery vendor during Prohibition), the Sazerac Company has distilled an ever-increasing line of fine spirits. Today, as an independent, American family-owned company Sazerac is the proud owner of some of America’s most venerable distilling companies.

Companies in Sazerac’s portfolio: Sazerac, Buffalo Trace Distillery, Gemini, A. Smith Bowman, Glenmore Distillery, Barton Brands, Fleischmann, Medley, Mr. Boston.

Spirits categories in under Sazerac umbrella: Bourbon, Canadian, Shooters, Cordials & Liqueurs, Blended Whiskey, Rye Whiskey, Wine, Vodka, Gin, Tequila, Rum, Brandy & Cognac, Scotch, and Cocktails.

The Sazerac Empire

The Indian whisky connoisseurs generally find Scotch smoother and more palatable than Bourbon. What steps should Bourbon producers take to make these connoisseurs say ‘yes’ to Bourbon and start loving it? The Indian whisky consumers are among the most sophisticated in the world with a long history of enjoying great whisky. We believe that this will eventually lead to more experimentation with American whiskey which in turn will lead to the discovery that many Bourbons are very smooth, eminently palatable and very enjoyable. This is similar to

the circumstances surrounding the current growth of Bourbon whiskey in the United States.

What gives you hope of Bourbon going to “erode Tennessee whiskey’s current dominant but more rural image position.”Consumers are evolving and becoming more sophisticated. As they evolve, they are demanding more sophistication from their brand choices. We believe that Bourbon can compete effectively in this market.

Today, Scotch has become a much smaller category (in the USA) and with the exception of single malt whisky has not seen growth for many years

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‘India exciting market for Sazerac’

he Buffalo Trace Distillery is a prized possession of Sazerac. It has continuously operated for over 200 years,

including during prohibition. Spread over 388 acres, the distillery’s architecture has imprints of four centuries. It has nearly 120 buildings, the oldest dating back to 1792.

Guy May, International Sales Director, Sazerac Company, describes the Buffalo Trace Distillery as “world’s most award winning distillery; no distillery has won more awards in international competition than the Buffalo Trace Distillery.” Its products have won over 500 accolades across the globe. The

latest honour, according to May, is that the distillery has been named as a “National Historic Landmark of the United States, one of only 2,577 properties so designated by the United States government.”

At the three Sazerac distilleries including the Buffalo Trace Distillery, Bourbons are crafted to offer consumers the broadest choice of whiskey experiences. Their brands age up to 23 years with varying taste profiles, carefully built through the use of multiple recipes and different ageing warehouses.

May is happy that “American whiskies, in particular straight Bourbon whiskies, continue to receive critical acclaim and excite whisky consumers in India and globally.” An international star performer of Sazerac comes from the Buffalo Trace Distillery. “As the best balanced Bourbon in the world it is no surprise that Buffalo Trace Straight Bourbon Whisky continues to be our international star performer,” tells May, adding “The breadth and depth of our Bourbon portfolio allows us to offer brands with various taste profiles that appeal to consumers globally including

our award winning labels, like Eagle Rare, EH Taylor, 1792, Weller, Antique Collection and Pappy Van Winkle.”

The Sazerac portfolio also has some good products which are simply bottled unfiltered and uncut. May tells about these products: “We market several whiskeys that are bottled uncut/ unfiltered, examples being George T. Stagg Rye Bourbon, William Larue Weller Wheated Bourbon, Thomas Handy Sazerac Rye and E.H. Taylor, Jr. Barrel Proof. These whiskeys appeal to connoisseurs and whiskey enthusiasts who enjoy bold whiskeys as well those who like to decide what proof to drink their whiskey at. We have been delighted with the consumer response to these rare whiskeys.”

About their experience in India, May tells, “In the whiskey category, our Benchmark Bourbon has appealed to Indian consumers who are interested in

T

Guy May, International Sales Director, Sazerac

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entering the Bourbon category. These consumers may currently be Indian whisky or Scotch whisky consumers but they rarely limit themselves exclusively to one segment of the whisky category.”

May describes the Indian market “an exciting one with growing middle class and educated consumers.” However, he finds current protectionist barriers

limiting their ability to interact with Indian consumers though he is hopeful of this situation “changing in the future which will allow us to expand our presence in India.”

May is confident that “India will become a large market for Bourbon whiskey and we are very much looking forward to being a part of that

growth story.” Sazerac has also set its eyes on

the market of other spirits in India. “We have just begun marketing our Taaka Vodka in India and we believe there is a consumer ready to trade up from locally produced vodka to affordable high-quality imports,” May informs.

We believe India will become a large market for Bourbon whiskey and we are very much looking forward to being a part of that growth story

Kentucky Straight Bourbon Whiskey has the following distinct features:

• At least 51.0% corn• Distilled to not more than 160 proof • Stored at not more than 125 proof • Stored in charred new oak containers • Aged for at least four years • No additives • No pre-barrel filtration• No colouring • Made in Kentucky

At the Buffalo Trace Distillery, the following process is followed to produce Kentucky Straight Bourbon Whiskey :

Milling• Grains reduced to a meal by hammers• Filtered through a milling screen Cooking• Boil water to 240 degrees F• Cook corn meal for 2 hours• Add rye or wheat as it cools• Add malted barley last• A sweet mash is created• Pump the mash to fermenter

Fermenting• Add in previously distilled mash or sour mash• A ‘sour mash’ is created; all Bourbon is sour

mash• Add yeast• In 3-5 days, the yeast eats the sugar creating a

7.5% alcohol ‘beer’ and carbon dioxide, which is pumped off during fermentation

Distilling• Fermented beer is pumped into the beer still• Meets steam rising from below• Alcohol is vapourized from the beer• Alcohol is condensed into a 120 proof liquid• Alcohol is then distilled again in a ‘doubler’ up

to 135 proof• Alcohol becomes whiskey-designate• The whiskey-designate is water white colour at

this stage Barreling• Whiskey is pumped into 53 gallon white oak

barrels• Barrels are charred on the inside• Bungs are made from poplar or walnut Ageing• Filled barrels are stored in ‘ricks’ in warehouses• Ricks promote airflow and are unique to

Bourbon• Warehouses have brick or metal sides• Whiskey in a metal warehouse ages more

rapidly• Whiskey in a brick warehouse ages more evenly• Top floors age the whiskey quickly• Bottom floors age the whiskey slowly• Best ageing floors are typically the middle floors• Average warehouse holds 25,000

to 40,000 barrels• During the 1st year of ageing 10%

evaporates• Each year thereafter a further 3%

evaporates• After 10 years 37% of the barrel

has evaporated• Below 45 degrees F, the whiskey

stops ageing

Guy May, International Sales Director, Sazerac Company, eulogizes their Kentucky Straight Bourbon Whiskey in these words, “As the best balanced Bourbon in the world it is no surprise that Buffalo Trace Kentucky Straight Bourbon Whiskey continues to be our international star performer.”

Making of Kentucky Straight Bourbon Whiskey

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W hisky is an exciting category in its own right. It is usually well controlled which ensures

authenticity. Scotch whisky, with which I have been associated for 45 years, is tightly controlled and it is the gold standard for whisky all over. Whenever markets open up, be it China, Brazil, or Africa, it is always Scotch whisky that people first go for. I therefore call Scotch rightly the gold standard.

It is exciting to see emerging quality whiskies from many countries, including India, where you have a number of exciting single malts. Japanese whisky is doing well globally. Irish whisky is in short supply. There are now whiskies emerging from Tasmania and even South Africa.

Essentially a whisky is a ‘style’ of product with real flavour and nurtured like a fine wine in a cask for a number of years, unlike vodka, which, in a nutshell, “when it is cold, it is sold”.

When people cannot get the authentic item, whisky-type products are sold, and India is probably the most outstanding example of this trend because of the heavy regulation and import duty there. In India, about 150 million cases of local whisky are sold. A lot of it is passed off as Scotch or Scotch-types, for example, Bagpiper.

So when barriers are removed, people trade up or switch to Scotch. Therefore I am convinced that at some point in time India will be the world’s No. 1 Scotch whisky market.

EMERGENCE OF BOURBON Ten years ago you could not give Bourbon away. It was simply out of favour with the consumer. In more recent years, however, we have seen some real craft Bourbons emerging and people are suddenly realizing that there are some wonderful Bourbon whiskies and like all fine whisky, old, quality Bourbons are in short supply.

The people with vision, such as my friend Mark Brown, who is the CEO of Sazerac, and therefore of course Buffalo Trace, have taken a long-term view, quietly building quality products for the discerning consumer. I have confidence that as part of the repertoire of whiskies, Bourbon will do well and clearly, especially in the USA.

Jim Beam clearly has a vision for

Liquor industry veteran, business writer and mentor James Espey OBE is “convinced that at some point in time India will be the world’s No. 1 Scotch whisky market.” However, he feels that for Bourbon to have good future in India and else-where, strong foundations need to be laid.

India. Its bottling locally in the country will make it much more affordable and I am sure they will do well. Beam is what I call a quality standard brand. It will never be a top-end brand because of its price points and positioning, but it is a very successful brand in the USA and some other markets. If they establish a category for Bourbon in India or elsewhere, it will open the door for the more expensive smaller brands to ride on their coat tails as people trade up.

After all, it is always the way with emerging societies. Using cars as an analogy, you start with a basic car, for example, a Tata or whatever and trade up through the ranks to the more expensive imports, for example, BMW, Jaguar and Mercedes, and if you are very rich to a Daimler or Rolls Royce. The same principle applies to fine wine and spirits.

SCOTCH VS BOURBONI believe Scotch whisky is truly a worldwide category, always the benchmark and will remain so. In contrast, Bourbon is very small in Asia and is not nearly as widespread as Scotch. In India, the full potential of the Scotch whisky category could not be developed due to the high 150 per cent import tariff and other barriers to trade. But

Scotch whisky has a historical resonance and consumer appeal in India (that Bourbon can’t match), which is waiting to be tapped once products become more accessible and affordable to Indian consumers.

In worldwide exports also, Scotch whisky has an edge over Bourbon whiskey. In 2013, total Bourbon and Tennessee whiskey exports were valued at $1.01bn. In contrast, Scotch whisky exports were £4.3bn or roughly $6.5bn; with a much wider geographic spread of markets.

According to the International Wine & Spirit Record (IWSR), Scotch whisky represented 28 per cent of the global whisky market in 2012. This placed Scotch whisky second to Indian whiskies in terms of volume (49 per centshare) but a long way ahead of US whiskies (including Bourbon), which represented 10% of the global market, followed by Canadian (6 per cent), Japan (3 per cent), and Ireland (2 per cent).

For those with patience, who are prepared to lay down foundation stones, there is a good future for Bourbon and all whisky categories. They need to follow a long-term, sound strategy. In India too, there is a great future for quality imported whisky, in which Bourbon will play its role. What is important for Indian consumers is to have the opportunity to taste the full raft of quality spirits from all over the world without having to pay unfair prices because of the prevailing

exorbitant duties.

Scotch on strong footing,

Bourbon lacks global base

If Jim Beam establishes a category for Bourbon in India or elsewhere, it will open the door for the more expensive smaller brands to ride on their coat tails as people trade up

James Espey

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