If you've been browsing whiskey Reddit or your other choice of social media, you may have seen people referring to some whiskey as being "sourced". Sourcing simply means that the final brand or producer purchases the initial distillate from another company. There are a growing number of such "Non-Distiller Producers" (NDPs) in the US. Typically these NDPs will blend and bottle different distillates and may age or finish them as well. This is not a new concept as rectifiers (those who bought whiskey from producers and "rectified" it) have been around as long as whiskey has existed in America. Some of the biggest brands we know today started as rectifier companies, including Four Roses. On the other hand, bad actor rectifiers added adulterants and put out shoddy products, spurring the creation of the Bottled-In-Bond Act and other quality regulations. While we have replaced the term "rectifier" with "NDP" in the common parlance, the practice continues to grow and thrive with many non-distiller producers turning out excellent whiskey.
What value do Sourced Whiskey Producers add?
Whiskey is much more than just distillate. While the input ingredients, water, yeast, and distillation process can have a major impact on the finished product, much of the flavor in whiskey comes later. NDPs can show off their skill in numerous ways including:
- Barrel Aging - A company sourcing unaged distillate has a huge number of options open to them for designing the flavor of the final spirit. They can chose the entry proof, barrel char, aging period, and aging location. NDPs in different areas may have radically different climates which can seriously change the rate at which the spirit ages and the degree of chemical extraction from the barrel.
- Finishing - The producer may chose to add a second barrel finish to the maturing whiskey, often a sherry cask, second differently charred oak cask, or something more exotic. This can be done with any whiskey, even that which was already aged when sourced.
- Blending - Some make the argument that blending is the highest and greatest form of a producers skills. If you've read our guide to blending, you understand the huge amount of skill it takes to taste and curate batches of whiskey, not to mention the operational expertise required to sample, track, and quality control many barrels over time. Without impeccable blending, product quality will vary significantly from batch to batch. While many enjoy single barrels for that reason, consumers expect consistent flavor profiles from major flagship products.
- Bottling - Similar to barreling, the NDP can chose the dilution from barrel or batch to bottle. The real advantage they have here is in being able to design unique or bespoke marketing under a brand of their own. Perception is reality and consumers, particularly younger generations, increasingly buy from brands they connect with most.
As you can see, sourced producers can have a huge degree of control of the majority of the whiskey production process. That being said, some NDPs will buy aged whiskey and do little more than slap their own label on it. Understanding what portions of the process a producer undertakes is a constant game of cat and mouse between whiskey enthusiasts and an every increasing number of NDP brands.
Why does Sourced Whiskey exist?
While rectifiers principally existed to aggregate the supply of numerous small producers (many farmers converted corn to alcohol for ease of storage and shipping) in the early days, the model still has a great number of advantages in the mature spirits markets of today.
- Startup Costs & Market Entry - Whiskey takes time and money. Distillation equipment, lab testing, and quality control are all very expensive, not to mention real estate and rickhouses for aging. Major distillers are able to run their operations around the clock to maximize the use of the equipment and decrease the required payback period. Even if a firm has enough capital to make all of those purchases, it will be four years at a minimum before any of the juice meets the requirements for straight whiskey without an eyesore low age statement. Sourcing whiskey allows a brand to focus on specific areas of the value chain like product design or brand creation. Some distillers start out producing vodka or other unaged spirits out of the gate, but sourcing whiskey allows for a company to start building its brand and flavor chops early. There is always the option to begin distilling operations later and many companies go on to do so
- Niche Appeal - Sourced whiskey companies can have relatively little overhead, particularly if they are primarily blending and bottling aged spirits. This means that they can address much smaller markets profitably than say a Jack Daniels or Maker's Mark which seek to distribute product the world over. A small producer can also take on more brand risk than an established company would by engaging with a celebrity to sell to their following.
- Simplified Supply Chain - Procuring high quality grains, yeast, and even barrels can be a logistical nightmare for a young company. It may be easier to contract with a major distiller who already has the network and volume discounts already in place than to build all of that infrastructure and supporting processes.
- Flexibility & Speed to Market - A new product can be created almost overnight. NDPs can source and blend whiskey from multiple distillers with wild variation and possibilities. They can take advantage of gluts in the supply at bigger producers to buy juice cheap and offload it as a distinct product. Similarly they can make up for shortages by sourcing similar tasting whiskey from various producers. Not being tied to a single master makes for significant flexibility. A producer can always start their own distillation operations at a later date as they mature, and many do just that.
- Refined Focus - While there is skill and art in the fermentation and distillation potion of the process, much of those steps are dictated by science. It is very difficult to redeem bad distillate. Allowing a distiller to deploy their expertise here frees the NDP to concentrate on other areas and removes one of the major points of potential waste or failure.
In short, NDPs are able to take advantage of the distillers economies of scale while being unshackled by the slow processes and dependencies of a major brand. Distillers in return can offload excess inventory or concentrate on production instead of investing in marketing.
How to know if you are drinking NDP Whiskey
Look for phrases like "Produced by," "Bottled by," or "Distilled by." If it doesn't mention distillation, it is likely sourced. There has been public outrage around the lack of disclosure on the labels of sourced whiskey, so some brands are increasingly providing this information on the label. In that case, you may see both the distiller and final brand mentioned. Corporate hegemony in spirits is definitely a thing, so don't be alarmed if you see multiple companies mentioned on a label. Additionally, major companies like Diageo may contract out additional distillation work to meet capacity constraints or support products under their own labels without the production overhead. Both large companies and small craft producers can create NDP products. If you really want to know the source of a bottle, look up the brand and product on the TTB's COLA database. At the end of the day, all that matters is that you enjoy what's in the glass. As long as the juice is good, I wouldn't dwell too long on its origin.
The Contract Distiller Masterclass - Midwest Grain Products
Also known as "MGP", this Lawrenceburg, IN based company has long partnered with small brands to make their whiskey dreams a reality. They offer twelve different recipes for distillates ready made or you can work with them to create a custom mash bill. If starting with one of their standard recipes, the minimum order is only four barrels! Though they now own some brands in-house, MGP gained a large portion of the sourced whiskey market when other distillers had to conserve stocks to feed demand for their own brands during the Bourbon boom. With the purchase of LuxCo in 2021, they now own:
- Blood Oath
- Daviess County
- Everclear
- Exotico
- Ezra Brooks
- Minor case
- Nicholson
- Pearl
- Penelope
- Rebel
- Remus
- Rossville Union
- St Brendan Irish Creme
- The Quiet Man
- Yellowstone
Additionally, the are known to produce (and this is just a sample, there are more than 50 brands using MGP Distillate):
- Angel's Envy Finished Rye
- Barrell (Some)
- Bower Hill Rye
- Bulleit Rye
- Chattanooga Whiskey 1816 Reserve (Chattanooga Whiskey Co.)
- Dark Arts
- George Dickel Rye
- High West Double Rye and some blends
- James E. Pepper (some)
- Metze's Select Indiana Straight Bourbon
- Pinhook Bourbon
- Rebellion Bourbon (Market Street Spirits – newer batches)
- Redemption Bourbon & Rye (Bardstown Barrel Selections)
- Sagamore (though they now distill their own)
- Smooth Ambler Old Scout Ten Bourbon
- Smoke Wagon (some)
- Templeton Rye
- Tin Cup
- Whistle Pig Old World Rye
- White Heart Bourbon
- Widow Jane Rye
- Willett Rye
Other NDPs of Note
MGP gets a lot of heat for its ubiquitous rye recipe that gets bottled everywhere, there are other titans in the contract production market.
Bardstown Bourbon Company
Established in 2016, Bardstown Bourbon Company operates the distillery of the same name in addition to the historic Green River distillery and has a robust contract distilling program. They are reported to have more than 40 mash bills under production in a given year. Distillate has been used in:
- 15 Stars
- Belle Meade
- Blue Run
- Calumet
- Chicken Cock
- Cyrus Noble
- Four Gate
- High West (Some)
- Hirsch
- James E. Pepper (Some)
- Jefferson's
- Kentucky Owl
- Lucky Seven
- Pursuit United
- The Wiseman
External documents claim that there are more than 30 brands included in their contract partner program so the above are just a sample. Bardstown's main plant registry is DSP-KY-20037.
Tennessee Distilling Group Ltd.
This somewhat secretive group provides contract distilling, storage, and bottling services to a large list of clients. Information on them is scant as revealed by their rather minimal website. They provide contract distillation services on a turn key basis. Brands using their services historically include:
- Bib and Tucker
- Big Moustache
- Brother's Bond
- Creekside
- Elvis
- Fugitives
- Kirkland Tennessee Whiskey
- Heaven's Door
- Jon Pardi's
- Knobel
- Monk's Road
- Nearest Green
- Pidgeon River
- Rattle & Snap
- Redemption
- Silverbelly
- Sweeten's Cove
- Stillhouse
- Uncle Nearest
- Yellow Bird
The plant registration for COLA lookup is DSP-TN-21029 and this information was gathered through a corresponding search.
Outro
We don't list all of the many brands using sourced whiskey but at this point you know that it doesn't really matter. NDPs can still showcase skill and create truly impressive bottles in the same way that full stack distillers can put out some absolutely terrible products. Seek producer information only to slake your curiosity. Cheers.