The Boutique Era

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Like many people I know, I’ve spent the last year and a half of lockdown getting into new hobbies.

I’m not traveling. I’m not going out to eat very often. I’m not exploring the city’s cocktail culture. Hence, I’m spending that money on other interests.

The two genres that have specifically sucked me in during COVID are cigars and watches, which pretty much makes me the most basic dude on the planet right now. Both industries are exploding, and my Instagram feed is like an endless feast of new makes, models, and sizes. New watch. New cigar. New watch. New cigar. Keep scrolling.

But here’s the thing: much like American whiskey right now, almost none of these new brands are actually creating their product from scratch. Rather, they’re taking the components of another company’s product and putting their spin on it.

That’s not to diminish the value of what they’re bringing to market, but rather to say that, as a consumer, a little bit of homework can go a very long way. Do some research into where these products are being sourced and you can find some spectacular deals.

My current obsession is the Venice Beach-based Vaer, started in 2016 by two guys named Ryan Torres and Reagan Cook. They’re purchasing automatic movements (the guts of the watch) from ETA SA in Switzerland, as well as Miyota in Japan, and creating sleek, elegant designs from those core components. I’ve purchased one of each model thus far, and I’ve been so pleased with the result that I sold my 2002 Rolex Submariner last week (for a tidy profit) and have never looked back. The Vaer D5 looks just like it for about 15% of the price, and my A12 Dirty Dozen still gives me the Swiss-made street cred.

My other obsession is the Paulin Neo C, manufactured in Glasgow just down the street from the warehouse where I purchase most of my single casks abroad. These three Scottish sisters are using Seiko’s robust NH35A movement from Japan, applying a minimal modernist design to a fantastic engine. Their aesthetic is simply divine.

Are these companies making watches? It depends on how you look at it. Barrell Bourbon, to use a whiskey example, is using American whiskies from Kentucky, Tennessee, and Indiana to design products for a new generation of drinkers. Sure, they’re using components that are already on the market (often in cheaper formats), but they’re creating something that speaks to the modern consumer (more so than Dickel No. 12). Are they making whiskey?

If I had to think of a direct comparison, I would equate the movement of a watch to the mash bill recipe of a whiskey. Go online, and there are countless websites that list the various available mash bills from different distilleries, breaking them down by producer. Watch movements work the same way. It’s usually the first thing a serious consumer wants to know about when examining a new product. Is it from MGP? Is from ETA? The answer helps us understand what we’re dealing with qualitatively from the get go.

Cigars are no different.

My friend Matt Booth has an amazing line of cigars called Room 101, and you’ll find one in my mouth just about every Friday. That being said, Matt doesn’t manufacture his own cigars. They’re made for him by various producers, from A.J. Fernandez in Nicaragua to Rocky Patel in Honduras. Matt puts his spin on the blending and the branding, but he creates none of the source materials.

Ten years ago, consumers were passionate about distillers. They went out of their way to purchase products from the same people who farmed and literally produced the source materials that created the liquid in their glass. Today, however, the game has completely changed. Consumers have accepted the fact that there are manufacturers and there are brands. In fact, they pride themselves on understanding both sides of the market and being able to wax eloquently about which brands source from the best manufacturers.

Yet, unlike the history of blended Scotch whisky, where consumers held brand loyalty to a specific non-descript recipe, today’s drinkers are only loyal to transparency. The education is part of the experience. They want to know all the intimate production details. Just like watch fans enjoy debating and discussing the merit of certain movements, whiskey drinkers like to do the same with specific mash bills, and cigar smokers with specific tobaccos.

This is the modern boutique market. And it applies to almost everything.

Modern boutique brands are like translators. They speak consumer and, in many cases, they’re helping old manufacturers find new fans in a crowded marketplace by putting a modern touch on a classic tradition.

-David Driscoll

Amazing Rosé Bubbles, Sub-$15

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I’ve been telling anyone who will listen this week about my new favorite wine in the store: the M. Bonnamy Crémant de Loire at $14.99.

I don’t like comparing non-Champs bubbles to Champagne because there’s really no comparison, but let’s say this: the least expensive good Champagne in the store is $29.99—the fantastic Paul Laurent. But is it twice as good as the M. Bonnamy? That’s up for you to decide.

Made from 100% Cabernet Franc, this wine is also 100% methode traditionelle meaning the second fermentation to create the bubbles occurred in the bottle, like true Champagne, not in a stainless steel tank with a CO2 gun. Hence, you get refined bubbles, a creamy mousse, and serious elegance.

What you don’t get is the brioche and minerality of a true Champagne, but for $14.99 I ain’t complaining. This wine is clean, fresh, tasty, and it tastes way more expensive than it is.

With mask rules back in effect, crowded bars seemingly less enticing, and my backyard patio looking more and more like my future office, I’m in for a case of the M. Bonnamy. As my late colleague Jim Barr liked to say: “This will be my house wine for the month.”

-David Driscoll

High Plains Drifter

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How do you turn four pretty good rye whiskies into one pretty fantastic rye whiskey?

You give them to one of the best—if not the best—American whiskey blenders of our lifetime: former Four Rose’s master distiller Jim Rutledge.

As someone who always wanted to make a rye whiskey, but who worked for a distillery that only made Bourbon, I have to imagine that finally getting that chance to blend several different recipes into one stellar marriage was a pretty thrilling experience for Jim.

And he definitely stuck the landing. Let’s look at the breakdown.

The new High Plains Rye uses whiskey from four different American distilleries:

  • MGP in Indiana

  • Middle West in Ohio

  • Kentucky Artisan in Kentucky

  • New York Distilling Co. in New York

It’s bottled at 48.5% ABV and we sell it at Mission for $54.99.

Having had the chance to taste it this week, I was tremendously pleased with the result, and it adds further evidence to my current belief that rye whiskey is a much more exciting category than Bourbon right now.

On the nose, it smells like a number of small production, 100% rye mashbill whiskies on the market right now, where the rye is absolutely front and center. There’s oak in the background, but it’s more akin to sticking your head in a bag of rye bread.

However, the palate deviates from that singularity and moves into a balance of sweet baking spices, toasted oak, rye grains, and a lovely sweetness from the wood. The finish is like a warm blast of all that goodness you get to revisit after every sip: cloves, brown sugar, cinnamon. The more I drink it, the more I want to keep drinking it.

Jim Rutledge was the first master distiller I met when I started in the industry, and I’ve always admired both his character and his whiskies. Hence, I have a sentimental soft spot in my heart for this release, but personal bias aside: this is a fantastic rye.

And it’s a further testament to the idea that a whiskey, when well blended, can be far greater than the sum of its parts.

-David Driscoll

Predictions For The Future

With summer pretty much ruined for the foreseeable future thanks to extreme heat, wildfires, drought, and other climate-induced dangers that seem to be getting worse rather than better, I’ve been thinking nonstop about the future of both our planet and our industry.

Spoiler alert: I’m not optimistic about either.

That being said, my lack of optimism about the wine and spirits industry is based entirely on my position as a professional, rather than a consumer. Things will be fine for those of us who like shopping for booze, but I don’t a see a bright future for independent retailers in particular, or specialty retailers who rely on their product knowledge for their position.

Here’s why:

  • Across the board, the internet has made subject matter experts less and less relevant. Now, with the rise of social media influencers, critics and experts have never been less important. An amateur Instagram account that whores itself out for free samples, and generates 100k+ followers while doing so, is now more important to suppliers than most retail buyers. Why? Because few retailers are actually out there driving sales and doing their own marketing to consumers. As a result, retailers are becoming less important to suppliers and producers. They’re simply the point of sale, nothing more.

  • In addition to the loss of status for retailers, third-party marketing sites like Drizly are moving retailers further and further away from the customer. When you purchase alcohol from one one of these sites, you’re still purchasing from a store like Mission, you just don’t know it. More importantly, the store doesn’t know you either. That means the third-party marketing company controls the relationship with the consumer, which is more valuable than anything. I know small retailers in LA that are 100% dependent on these companies at this point, facilitating sales that they have no control over, losing both consumer awareness and margin in the process.

  • With product selection at an all-time high and no end in sight to the amount of new brands entering the market, customers have never had more selection than right now—which means they’ve never been more discerning, as well as overwhelmed! While alcohol sales continue to grow overall, the amount of sales happening at any one location is thinning out.

  • As more customers begin to treat bottles of alcohol like a one-time only vacation (meaning: “I’ve already been to Paris, so next year I’m going to Greece”), brands have to create new adventures as fast as they can to get repeat business. While it may work for the brand, it’s exhausting the capacities of small retailers who wind up with dozens of specific batches and barrel numbers that don’t sell evenly.

I don’t see consumer interest in whiskey slowing down anytime soon, but I do see consumers narrowing their focus. That means the boutique side of the market is becoming saturated.

I believe that boutique burnout is what led to record sales this year for LVMH, Diageo, Campari, and other huge drinks companies that have grown like Amazon during COVID. As of this morning, Diageo is up 16%, posting sales of $17.7 billion.

Why does that matter?

Find me a small, independent retailer that makes a healthy profit selling Diageo products. With Total Wine, Costco, and other big box stores offering low prices based off volume purchasing and scale, there’s no way they can compete.

That’s not a problem so long as enough consumers are willing to support alternative brands or pay a higher price now and again, but that’s not what’s happening right now.

Fear often leads us back to the familiar. With inflation, COVID, social violence, drought, anxiety over finances, and a general malaise about the workplace from our country’s working class, it’s no wonder the most familiar brands are thriving.

-David Driscoll