Washington Monthly - September/October 2015 - 122
preferences (Washington preferred brandy, and Jefferson snobbishly eschewed
whiskey for the higher-brow wine)-
Mitenbuler picks up bourbon's narrative around the Civil War. By that time,
whiskey was a widely consumed beverage (though it was also still occasionally used for cleaning wounds). The book
moves quickly through the 1800s, briefly
discussing the Whiskey Trust of the late
1880s and its attempts to monopolize the
industry before being pursued by the U.S.
government under the Sherman Antitrust
Act. The bulk of the book, though, focuses
on the whiskey magnates of the twentieth
century, and their looming legacies in today's consolidated whiskey industry.
At the center of Mitenbuler's story is
Prohibition, on its face a huge obstacle for
the bourbon industry, but also a boon for
the underground bourbon economy and
its champions. During Prohibition, entre-
ty to solidify their control over the bourbon industry. Consolidation in the industry began to accelerate. Between 1933 and
1958 the number of distilleries dropped
from 130 to seventy-six as the bigger companies expanded through acquisition. By
the end of that period, the top four distilleries controlled more than 75 percent
of the market. And few attempts were
made to reel in the power of these giants.
In 1952, the House Judiciary Committee
held a hearing on whiskey monopolies,
but nothing came of it. In the postwar era,
whiskey was booming. Not only was whiskey patriotic, but the whiskey lobby had
grown in strength over the prior decades.
Soon, Americans' devotion to their favorite spirit would be codified into law.
Worried about losing his foothold to foreign producers, Rosenstiel used his lobby shop, the Bourbon Institute, to convince Congress that bourbon deserved a
trade designation to preserve its uniquely American provenance. In 1964,
Congress passed a resolution declaring bourbon "a
distinctive product of the
United States," protecting the domestic market
from foreign imitations.
(Bourbon companies can
be, and are, owned by foreign companies and headquartered overseas, but
production must happen
stateside.) The legacy of
this protection is still
felt: today, nearly 95 percent of bourbon
is produced in Kentucky. Over 40 percent
of that production is controlled by Beam
Suntory, producer of Jim Beam, Maker's Mark, Old Grand-Dad, Old Crow, Old
Overholt, and Knob Creek, among many
other spirits.
Giving an account of the power brokers in the bourbon industry inevitably
means a history that features almost exclusively white men. But there is a taste
of diversity in the script of bourbon's history, to be found in the prominent role of
Jewish immigrants in the early bourbon
boom. Today, the bottles on liquor store
shelves bear names like Craig, Beam,
Harper, Daniels, Walker, or Williams. But
We bourbon drinkers have
consumed the industry's
marketing ploys-terms
like "craft" and "single barrel,"
it turns out, mean virtually
nothing. And that legend on the
label, detailing the namesake's
hardscrabble success story, is
almost certainly made up.
preneurial types such as Lewis Rosenstiel,
who would become one of the most powerful men in the industry, bought closed
distilleries and their whiskey stocks to
prepare for repeal, which they considered inevitable. In the meantime, they
took advantage of a Prohibition loophole
that allowed doctors, dentists, and veterinarians to prescribe up to one pint of
100 proof spirits every ten days. High-end
doctors would give patients bourbon that
was bottled and crafted essentially the
same as before Prohibition, except with
a four-word caveat on the label: "Unexcelled for Medicinal Purposes."
When Prohibition was repealed in 1933,
men like Rosenstiel seized the opportuni122
September/October 2015
a representative ode to bourbon's greats
might include Bronfman, Lehman, Shapira, Abelson, and Wertheimer, in addition to Rosenstiel. In the industry's early
days, however, it was assumed that bottles sporting these names wouldn't sell to
a nativist and anti-Semitic American citizenry. But Mitenbuler dedicates ample
inches to discussing the largely unrecognized contributions of this cohort, one of
the great gifts of this book to the historical record of American bourbon.
T
he notion of an industry that is able
to marry the economic worldviews
of Jefferson and Hamilton is certainly pleasant to imagine. But the consolidation of today's industry would suggest
that for all practical purposes, Hamilton's
vision has won out. As consolidation has
swept many American industries, so has
the whiskey industry been concentrated to just a few companies. Today, thirteen distilleries produce nearly 95 percent
of all the whiskey consumed in America,
and those distilleries are owned by eight
companies. (That percentage was virtually 100 before the recent whiskey renaissance saw the opening of many truly independent distilleries.) The distilleries
sell their product to many brands you've
heard of-one of the biggest, the unromantically named Midwest Grain Products Ingredients, sells its whiskey to Templeton, Bulleit Rye, and others.
Mitenbuler asks the right questions
about today's whiskey industry-centrally:
Is big inherently bad? As the bourbon industry has grown, has it lost touch with its
image of "independence, self-sufficiency,
and aversion to arbitrary rules?" But
when he answers these questions he focuses mainly on how such consolidation
might affect quality. Large-scale bourbon
producers, he argues, are still putting out
high-quality products-in many instances, better tasting than the smaller-batch
distilleries. And this settles the point for
him. "The size of a still, big or small, pot
or column, has far less impact on a whiskey's quality than the skill and know-how
of the distiller operating it," he says. So
long as the giants still employ top-notch
distillers, the quality of our whiskey
won't be in jeopardy.
Table of Contents for the Digital Edition of Washington Monthly - September/October 2015
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