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Cost highway: American whiskey’s affordable focus

As premiumisation slows, American whiskey brands are rolling out more affordable options with mixability in mind.

American whiskey
American whiskey brands are pivoting towards affordability

*This feature was first published in the November issue of The Spirits Business magazine.

In the spirits sector, premiumisation is slowing down. Pandemic‐related conditions that saw consumers with more disposable income and leisure time have changed, with inflation, overstocking and other market factors causing a shift in purchasing trends. A Q4 2023 SipSource report declared that premiumisation is ‘dead’, with bottles at the US$50‐plus price tier down by 6.8% from January to December 2023, while those at the below‐US$50 price tier were down by 5%.

“Some consumers are going back to the tried and true, and recognise with the current environment, they don’t have the purchasing power,” says Susan Wahl, vice‐president of American whiskey at Heaven Hill. “They’re still collecting, but they might be doing that a little less often, and they’re bringing in an everyday item on a more often basis, recognising that the quality really is there in that price range.”

American whiskey makers have responded to these trends by releasing or reimagining a number of more affordable expressions since June, typically priced between US$20 and US$30. These are often whiskeys geared towards the on‐premise, at‐home mixing, and entry‐level drinkers.

Jim Beam American whiskey
Lower-priced whiskeys tend to be geared towards at-home mixing and the on-trade

Supply and demand

According to Wahl, there is more of a dichotomy in the marketplace than before, especially over the past six months. The Heaven Hill portfolio includes premium brands like Parker’s Heritage and Old Fitzgerald, which perform well, but also cocktail‐friendly budget items such as Evan Williams Bottled in Bond. “The spirits industry is seeing a bit of a hiccup in its sales,” Wahl says. “There is going to be a supply‐and‐demand issue, where more barrels are out there today than demand, and that is going to lead to innovation in all parts of the category, including this more approachable price point.”

As American whiskey brands like Jim Beam, Green River, and Uncle Nearest invest in this more affordable price band, they are doing so without sacrificing quality. In June, Beam re‐released its Black Label Bourbon, adding a seven‐year age statement, raising the strength to 45% ABV, and pricing it at US$25.

American whiskey
Green River 1885 was made with bartenders in mind

Master distiller Fred Noe said it was important to him to have a product that anyone could afford. His son, Freddie, also master distiller, has called it the Swiss Army Knife of Bourbons, able to be enjoyed neat, on the rocks, or in a cocktail. “There’s people who give 25 bucks for one drink, and you get a whole bottle of high‐quality Bourbon,” Fred says. “You can pay a lot more and get a hell of a lot less.”

Fred recalls one customer who, at a bottle signing, asked how many they were allowed to buy. “I said, ‘All you want, this isn’t allocated.’ The word ‘allocation’ comes in a lot with Bourbons they enjoy but they can’t drink every day because of what the bottle costs. You can drink this every day.”

In July, Green River Distillery added to the mix with 1885, a four‐year‐old straight Bourbon bottled at 42.5% ABV and priced at US$22 for a one‐litre bottle. The whiskey was specifically designed with bartenders in mind.

“It’s our only product available in one‐litre size, and that was designed for that premium well,” said Bardstown Bourbon Company president Pete Marino. Bardstown Bourbon bought Green River in 2022. “We want people to become acquainted with our brands. This is a great way for them [to do so] if they’re coming into the whiskey space.”

When building cocktail menus, bars prioritise high‐value spirits that drive flavour but not cost, with brands like Old Overholt and Heaven Hill’s Rittenhouse Bottled in Bond, both rye whiskeys, having served that purpose for years. These budget whiskeys then play well on the shelf to consumers looking to tighten their spending, and behind the bar, where they can be featured in cost‐ effective cocktails.

Nearest Green Tennessee Whiskey “doesn’t taste like reduced-priced whiskey at all”

“We control the process 100% grain to glass, so we can be more nimble, and we can produce whiskeys at a very welcoming price point,” Marino says. “As we continue to mature and evolve as an organisation, we are taking a good long look and a long‐term lens on our portfolio to make sure that we show up in all of the segments that make sense.”

In October, Uncle Nearest announced the release of Nearest Green Tennessee Whiskey, bottled at 42% ABV and priced at US$30. It is an entry‐level expression that encourages inclusivity and versatility.

Master blender Victoria Eady Butler says the producer wanted to create an accessible whiskey for those not looking to spend US$50, but still searching for quality. “But once you sip it, you will see it doesn’t taste like a reduced‐price whiskey at all,” she says.

The on‐premise and the rise of home bartending played a factor into creating the whiskey as well, which Butler says was released ahead of schedule to meet current market conditions. “We wanted to give bartenders and those who enjoy a good cocktail at home something less in price
to make those cocktails with,” Butler says. “And also an everyday sipper.”

Certain things, such as classic cocktails and hard times, are less drinking trends than drinking staples, and this new surge of whiskeys caters to both. Premiumisation spiked during the pandemic, and while brands will continue to invest in prestige labels, there’s no doubt the pendulum is starting to swing in the other direction.

Rittenhouse Rye cocktail
Rittenhouse Rye owner Heaven Hill will monitor to see if the trend has staying power

“There’s a lot of cyclicality that is at play across many categories,” Marino says. “People are choosing to drink differently, so they’re coming in and out of different price tiers. When they’re drinking in their favourite bar or at home, they might look for a little more value.”

It’s not that premiumisation will be completely abandoned, there’s just more balance as brands adjust to dips in sales. Marino says Green River has received reorders for 1885, which is currently in nine markets.

Here to stay?

Wahl says Heaven Hill will continue to look at purchasing data to determine if this trend has staying power, but the producer does not plan on changing anything to do with Evan Williams Bottled in Bond or Rittenhouse now that there are more players in the space.

“For us, it’s less about the competitive nature of what’s happening in this moment, and more about the long‐term view for our brands. We’ve been playing in these spaces all along,” she says. “We might speak louder about it now than we had in the past.”


How do you see consumer habits shifting in response to market factors like inflation and slower growth rates?

Ryan McFarland – chief commercial and strategy officer, Drinksology Kirker Greer

“Global megatrends creating a shift in habits include premiumisation, sustainability, convenience, and wellness. While these continue to fuel interest and growth, factors like inflation and slower growth rates mean it’s also important they’re affordable. We see price sensitivity coexisting with a growing interest in premiumisation – especially among younger and more affluent consumers. That’s why our focus is on accessible premiumisation, and meeting that with award‐winning packaging and liquid for those willing to pay more for certain qualities and a whiskey they value, whether for mixing in cocktails, or enjoying neat. Our Bowsaw American whiskeys lend themselves well to lower‐ ABV cocktails due to their strong flavour profile that continues to work well as a flavour modifier when diluted with other lower‐ABV ingredients.”

What is the current mood surrounding the pending* American single malt regulations?

Miles Munroe – master blender, Westward Whiskey

“We’re done holding our breath. We were part of the original American single malt whiskey commission that wrote these standards of identity. That was in 2016, and since then, there’s been universal support. We’ve been told many times, everything is all set, but still no word. So we’ve stopped asking, and that’s all right. Ultimately, we do think it’s important to define this new category, for the protection and integrity of the category, but also for the consumer, so people understand what we’re doing. We did make a concerted effort this year to really put the pressure on representatives and the TTB and let them know that we’re still here and that we’re still all dedicated to making this happen.”

*Since this article first went to print, the American single malt regulations have been published.

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