George Washington’s Distillery Sparks 778% Jump in Rye Whiskey Volume, 900% Increase in Sales

      The reconstructed George Washington’s Distillery is being credited with soaring rye whiskey sales for the entire industry.

The distillery opened 10 years ago, after a major reconstruction effort led by the Distilled Spirits Council.   Since 2007, when the reconstructed distillery opened at Historic Mount Vernon, some 400,000 persons from around the world have visited Gristmill and Distillery site.

Since 2009, rye whiskey volumes have grown 778%, from 88,000 cases to nearly 775,000 in 2016. In value terms, that translates into a 900% jump in revenue from slightly more than $15 million in supplier revenues in 2009 to nearly $160 million in 2016.

The Council projects rye whiskey growth to continue in the double digits through 2017 fueled by large suppliers such as Bulleit, Jim Beam and Wild Turkey, as well as many small producers that have sprung up since the reconstruction of George Washington’s Distillery.

“American rye whiskey is retaking its rightful place among the world’s great distilled spirits, a place that was lost to Prohibition,” said Kraig R. Naasz, president/ceo.  “The growth of rye whiskey has also benefitted American farmers, and underscores what George Washington knew, that producing distilled spirits is the essence of value-added agriculture.”

In addition, at the request of the Council, the U.S. International Trade Commission (USITC) recently established a new export code for U.S. exports of bottled rye whiskey, a recognition of the re-emergence of American Rye Whiskey as a notable spirit not only in the United States but also abroad. The new export code will allow the U.S. government to track exports of “American Rye Whiskey,” similar to how Bourbon exports are treated.

Since 2008, when Virginia legalized spirits sales at the distillery, Mount Vernon has sold more than 23,600 bottles of whiskey and brandy and 8,000 whiskey gift sets raising almost $1.5 million in revenue, which benefits the ongoing preservation and restoration of Mount Vernon and its educational programs.

In 1797, George Washington’s farm manager, James Anderson, convinced his employer that producing whiskey made from corn and rye grown on the estate would be a natural complement to his milling business. Washington was initially skeptical but soon granted permission to build the 2,250-square-foot distillery, making it among the largest whiskey distilleries in early America. By 1799, Washington produced 11,000 gallons of whiskey, worth the then-substantial sum of $7,500. The distillery ceased operating in 1814 when the building burned.

Reconstruction of the distillery was funded largely by the Distilled Spirits Council and Wine & Spirits Wholesalers of America.  In retrospect, opening of the distillery represented the final move in removing the taint of Prohibition from the distilled spirits industry.

Just slightly earlier, Wine Institute’s John DeLuca had led an effort to publicize the fact that wine, when consumed in moderation, was associated with positive coronary benefits.

Between the reconstruction of George Washington’s Distiller and Wine Institute’s work on the health front, along with industry support of legislation to curb alcohol abuse, the image of beverage alcohol was completely reworked.  In the popular mind, “Demon Rum” no longer exists.

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