The Spirits Industry

Question 1

What are buyer’s own brands?

Answer 1

Refers to when a retailer sells own-label products.

They source spirits and have them bottled/labeled under their own brand to sell. Will often purchase a fully-finished product, as many of the retailers do not distill or own maturation facilities.

Question 2

What is a maturation specialist and give an example of a region where these specialists work?

Answer 2

• Maturation specialists do not distill their own spirit, but rather focus on the blending and maturation of the product.
• In Armagnac, there are many smaller professional distillers that will sell their product to a Maturation Specialist who will blend and mature the product to their specification.

Question 3

What’s the difference between ‘XO’ in Cognac and ‘XO’ on Rum?

Answer 3

• ‘XO’ on Cognac means matured for at least 10 years
• ‘XO’ on Rum means no guarantee of anything

Question 4

What’s the general definition of single malt Scotch Whisky:

Answer 4

• Must be made in Scotland
• Using malted barley
• Distilled using pot stills
• Distilled at a single distillery
• Matured for three years in oak barrels

Question 5

What’s the general definition of straight bourbon?

Answer 5

• Can only come from the US
• Must be made from at least 51% corn
• Matured in new, charred oak containers or vessels for at least 2 years

Question 6

Give an example of a distiller that might grow their own raw material:

Answer 6

A Cognac distiller that owns their own vineyards and grows their own grapes.

Question 7

Give three examples of where legal controls are placed on distillers for the sourcing (type and origin) of their raw materials:

Answer 7

1. Tequila
2. Cognac
3. Calvados

Question 8

What is Glenfarclas?

Answer 8

A medium-sized, independent single malt whisky distillery in Scotland that markets its own brands in both local and export markets.

They must work with a specialist importer in each market they want to be located in.

Question 9

Name the country of origin:

• Baijiu
• Soju
• Shōchū
• IMFL

Answer 9

• Baijiu - China
• Soju - Korea
• Shōchū - Japan
• IMFL (India Made Foreign Liquor) - India

Question 10

Name the country of origin:

• Radico Khaitan Ltd
• Luzhou Lao Jiao Co. Ltd
• Hite Jinro Co. Ltd

Answer 10

• Radico Khaitan Ltd - India
• Luzhou Lao Jiao Co. Ltd - China
• Hite Jinro Co. Ltd - Korea

Question 11

Name three major suppliers of spirit, who also may produce their own brands:

Answer 11

• MGP (USA)
• Greenall’s (UK)
• E&A Scheer (Holland)

Question 12

Per the W.H.O., what is the volume of a unit of pure ethanol?

Answer 12

12 mL of pure alcohol, which is the equivalent to 30 mL, or 1 US fl oz, of 40% abv spirit

Question 13

To the consumer, what does the term ‘craft’ imply?

Answer 13

Value linked to quality, as well as attention to detail, tradition, handmade, small-scale production, etc.

Question 14

True / False:

In Scotland, all of the malt used for malt whisky must come from Scotland?

Answer 14

False

The malt may be sourced from anywhere.

Question 15

True / False:

The vast majority of distilleries that produce flavored spirits make the base themselves.

Answer 15

False

Most of the distilleries that specialize in flavored spirits do not make their own base, but rather just focus on the flavoring aspect of production.

Question 16

Ultimately, where is the general definition of a spirit outlined?

Answer 16

At the local level, although it may be reinforced by national or international regulations or agreements.

Question 17

What are the four key stages of spirits production:

Answer 17

1. Processing raw materials
2. Alcoholic fermentation
3. Distillation
4. Post-distillation operations

Question 18

What are the two main types of large multi-national spirit companies in the world?

Answer 18

1. Those that have a multi-national outlook
2. Those that have sales focused on a small number of markets

Question 19

What is an independent bottler? Give an example.

Answer 19

Companies that buy-in spirits and bottle under their own name as well as that of the distiller.

In Mezcal there are many very small producers that sell their spirit to a bottler, who then blends and promotes the product for sale.

Question 20

What is or often can be the focus of larger companies that are using outside professional distillers to produce the bulk of their distillate?

Answer 20

Maturation and brand development

Question 21

What is the basic definition of whiskey?

Answer 21

A spirit made from grains.

Question 22

What is the legal definition of ‘craft’?

Answer 22

With few exceptions, there is none. And there is no consensus within the broader industry as to what it really should mean.

A few jurisdictions have begun to create legal definitions for the term, but these are not included in the textbook at this time.

Question 23

What is the potential length of the distillation season when using dry ingredients?

Answer 23

Can be year-round

And as a result, there tend to be less active distillers in the same category - because there is less demand on the stills and the season gets spread out over a longer period of time.

Question 24

What is the potential length of the distillation season when using fresh ingredients?

Answer 24

Usually very short (seasonal)

And follows the growing season/harvest, such as for distillation of fresh fruit. In a smaller category, therefore, many smaller distillers can work independently, but in a larger category, it is mandatory for a number of professional distillers to share the load during what amounts to a relatively narrow period of time.

Question 25

What are the W.H.O. guidelines for daily consumption of alcohol units for men and for women?

Answer 25

• Men - not more than 3 units per day, average
• Women - not more than 2 units per day, average
• Abstain from drinking alcohol at least once per week
• Try not to exceed four units on any one occasion
• Don’t drink and drive, when pregnant, or in certain work situations

Question 26

What percentage of the global spirits market do the main spirits from these countries represent?

China, Korea, Japan, and India

Answer 26

40% of the global market

Question 27

Where are the large companies that have a more local focus often located?

Answer 27

Mostly based in Asia and Brazil, often in countries dominated by locally produced spirits (baijiu and cachaça).

Question 28

Where do the large multinational companies typically come from?

Answer 28

They often are Western in origin and take heritage from the US and UK.

Question 29

Who is responsible for making sure that label claims are accurate and reliable?

Answer 29

The person or company that puts an item on sale - the label should relay all of the information about what is in the product, accurately.