Whiskey distillery tours often evoke a sense of tradition, with many establishments highlighting their manual processes as a key aspect of their heritage. While some modern distilleries adopt highly automated practices, others take pride in their artisanal approaches, even if this results in operational challenges. Distilleries that eschew technology frequently encounter errors that, while seen as part of the craft, can lead to financial strain due to inefficiencies.
Mandell points out that while the expertise of a master distiller is invaluable, a lack of technological aids can result in inconsistencies in the whiskey produced. “What many of the other guys get is just inconsistent,” he states, emphasizing that the absence of precise controls can adversely affect the quality of the whiskey.
In the whiskey industry, sourcing and contract distilling are common practices. Many labels do not produce their whiskey on-site; for example, Redemption Whiskey is exclusively sourced from MGP Ingredients in Indiana and does not have its own distillery. Sourcing typically involves purchasing pre-made barrels, while contract distilling entails creating whiskey tailored to a client’s specific needs.
Mandell is well-acquainted with the nuances of the industry through his work with Bardstown Bourbon Company, a distinguished distillery he helped establish in 2014. Bardstown not only produces its own whiskey but also engages in contract distilling for other brands, which is often where the profit lies. While whiskey requires years of aging before it can be sold, contract clients must pay upfront, providing financial support to the distillery. Mandell suggests that Bardstown’s ability to balance both operations was crucial for its success, especially in its early days when it faced certain quality challenges.
After Mandell and Hargrove left Bardstown following a private equity buyout, they quickly began developing a new venture. Mandell reflects on their approach: “What if we could start over, take everything that we learned, and create the distillery and the system from scratch? What’s needed out there? What problems can we solve?” This inquiry revealed numerous challenges and a significant market demand for high-quality whiskey production. This demand encompasses a broad array of brands, including many non-distiller producers and celebrity whiskeys now populating the market, such as SirDavis from Beyoncé.
