We hate being lied to. Even when we get most but not all of the facts and a lie isn’t even in play, we get suspicious and want answers. The most recent instance of this that I’ve paid attention to is in the bourbon industry, where information is suddenly more important than the taste of the booze.
If you’re unfamiliar, what I’m talking about is the fact that while the numbers are rising, there aren’t that many large distilleries in the United States. The number of craft distilleries is rising, but not as quickly as the number of new spirits companies. Why? It’s quite simple, plenty of new companies are what Chuck Cowdery began calling NDPs, or Non-Distiller Producers.
An NDP is simply a company that buys barrels of bourbon from someone else and bottles it themselves with their own branding and story, or contracts with a distillery to purchase whiskey from them after the distillation process. This has been going on for a really long time, with some of the companies being very honest and open about those facts, while others have simply lied or hid those facts and created a mythology surrounding their juice that can, and now has, led to trouble. And it wasn’t until this year, when NPR ran a story on the subject, that the issue seemed to go mainstream.
Templeton Rye out of Iowa is the example that is in the news the most now. The owners get their whiskey from MGP in Lawrenceburg, Indiana, like many NDPs, but have never disclosed that information on their bottle. Instead, Templeton have spun a web of marketing about how Al Capone preferred their product and how it is produced in Iowa, tugging at the heartstrings and pride of the locals. This is a great marketing idea, if you can get away with it, but Templeton was recently sued for their label, and while remaining indignant about some things (in a recent video, one of the owners likens their relationship with MGP to “They supply flour and eggs and we bake the cake.”), they have agreed to make the change to their label. And by the way, the cake analogy couldn’t be more dumb. He should have said that MGP bakes the cake, sends it to Iowa and they put the cake in a box after adding some sprinkles. Templeton also notes that they have always let it be known that they have a “distilling partner in Indiana” and if you just go to the website you can get that information. I don’t know about you, but I’m willing to bet most consumers don’t check out distillery websites before purchasing, ensuring that the majority never knew about this partnership.
A recent look into customer responses to this episode in Iowa were mixed. Many customers responded with a hearty, “who cares where it’s made, it tastes good!” While a smaller but growing percentage claimed they were done as customers after feeling duped into buying something they thought was a purely local product.
That small but growing group are the ones that want the truth and nothing but the truth. They are educated consumers who spend their money with a little more intent than others. They would rather pay a little more for a local product or invest in a company that they have a personal relationship with than to empty their pockets for big box retailers or faceless corporations. And those people suddenly feel armed and dangerous in whiskey conversations. I noticed this at WhiskeyFest in San Francisco this month when three separate times during breakout seminars someone in the audience asked a question about MGP. “Is that made in Lawrenceburg?” Or “I bet that’s actually from Indiana.” These people mean well, and sometimes they’re right, but come off looking silly if they push their agenda amongst industry professionals.
I guess I side with both groups on this issue. I like to know where the whiskey in the bottle was distilled and if I’m buying from an NDP or not, but have zero aversion to the NDPs that are out there and open about their methods. I’ll be really honest, some of the best Rye Whiskey I’ve ever had comes from MGP in Indiana, and they make some great bourbon as well.
So don’t tell me that you “bake the cake” or use an ancient family recipe that’s a secret. I don’t mind a good story and can appreciate great marketing. After all, tons of whiskey buyers pick a bottle out based on what it looks like anyway. But if you break the trust of a consumer, the way Templeton has for some, there are way too many great bourbon whiskey options out there to turn to instead. Nobody wants to support shady marketing practices, regardless of how the stuff inside the bottle tastes.
