In Ontario, we’ve seen the growth of wine regions since the 1980s, a first wave of microbreweries in the 1990s, and a second, much bigger wave of microbreweries in the last five years.
Logically, it was a matter of time before the microdistillery took form. Today, microdistilleries are still in their infancy, but they offer a unique product, and consumers are beginning to take note.
“People are looking to drink better, not more,” says Berry Bernstein, co-owner of Still Waters Distillery, based out of Concord, Ont. “They’re looking for the unique products, high quality products, and price is not a huge concern.”
Just over three-and-a-half-years, Still Waters is Ontario’s first craft distillery, and seeks to create a product not usually offered by the other major distilleries.
Its flagship product, Stalk and Barrel single-malt whisky, was released in April to great fanfare in the Ontario spirit community. Ontario’s first contemporary single-malt, the first cask sold out within a month, at $70 per 750 mL bottle.
The strong early showing (despite not being sold at the LCBO) appears to demonstrate a deep desire amongst Ontario consumers for unique styles and local flavour within their spirits.
Alongside Still Waters’ single-malt, they’re also focusing production on Ontario’s first contemporary 100 per cent rye whisky. Although most Canadian whiskies, like Canadian Club and Crown Royal, are usually referred to as rye whisky, they oftentimes contain between two and 10 per cent rye mash, with the majority made up of barley and little separating it from the standard whiskies.
“We see everywhere a real increased demand for real rye whiskey,” says Bernstein. “Canadian, historically, just hasn’t been a type of whiskey that consumers have been drawn to.”
The early microdistillers aren’t focused solely on whisky. Still Waters also released both gin and vodka, while 66 Gilead Distillery, in Prince Edward County, has a massive array of offerings.
Unlike Still Waters, 66 Gilead chose to offer some of their products in the LCBO, as opposed to exclusive online sales. Their Loyalist Gin is now distributed throughout southern and eastern Ontario for $40 per 750 mL bottle. When it’s in stock, it can be found at the flagship LCBO on Rideau Street.
The gin is especially smooth, as to be expected from high-end gins, making a martini so good it could make James Bond feel like an altar boy. Priced cheaper than Hendrick’s, it’s a terrific indulgence.
The 66 Gilead roster also includes a whole wheat, rye, and pine vodka. Their first aged spirit, a two-year-old aged rum, sold out within a month and a half. Their first whisky is due to be released in the coming year.
Microdistilleries have the added benefit of being closely linked with the microbrewing and wine industries in this province, a luxury that earlier local alcohol producers couldn’t afford.
Much like the Vintners Quality Alliance and the Ontario Craft Brewers Association, microdistillers are organizing together in order to ensure a certain level of quality, and brand appeal, for their products. Called the Ontario Craft Distillers Association, the young group consists of just four distilleries in the province, all of which are along the coast of Lake Ontario.
This system is modelled after the distilling guilds that have popped up south of the border, in many states.
“We don’t want to have the situation that happened in the United States . . . there’s no aging regulations,” says Sophia Tanpazi, co-owner of 66 Gilead Distillery. “Some of the products that come out of some of these shady companies end up being terrible and ruin the business for everybody.”
In Ontario, whisky must age in a wooden cask for at least three years before it can be legally sold as whisky. These laws do not exist everywhere in the U.S., sometimes resulting in whisky that has just touched wood before going to sale.
Instead of microdistilleries competing amongst each other for a limited number of consumers, more consumers are switching over to the high-end microproducts from the mass-produced kinds.
As an added bonus, the market for spirits is expanding. From 2000 to 2011, spirits have gained five percent of the total U.S. market for alcohol, from 29 per cent of the market to 34 per cent, according to the Demeter Group, an investment bank from San Francisco. There appears to be little rationale for infighting between the microdistilleries, which helps encourage the growth of the guilds.
Taken together, microdistillers are still an extremely small percentage of the industry, even smaller than microbreweries. Nonetheless, it’s only a matter of time before Diageo, Jim Beam, and Bacardi will be forced to take notice.
