What’s Next for U.S. Spirits? Considering an Industry on the Cusp
Plus, cocktails enter their cheese era, how the fed is sidelining small farmers, the legacy of Baron James on the block, plus the rest of the Good + Tasty scoop
Uncertain Future for U.S. Spirits
The US spirits market has been served a head spinning cocktail of historic events. For years, producers have been contending with the general, well-documented downturn in consumption. Since 2021, Bloomberg reports that shares of the world’s top spirits, wine and beer producers have lost a combined $830 billion amid rising concerns over health.
But this year, demand abroad for US spirits declined to all-time lows in Canada and Europe after President Donald Trump repeatedly threatened to make Canada the 51st US state, and imposed tariffs on both Canadian and European goods.
In the first half of this year, US wine and spirits were ripped from the shelves of retailers, and removed from bars and restaurants. They were replaced with products that vaguely resembled the MIA.
Today, producers and trade groups in the US, and industry pros abroad are all still reeling from the emotional and logistical hangover of severing ties with long-term business partners, and in many cases, friends.
But for many abroad, it was more than warranted, because Trump’s behavior felt as unexpected and grotesque as an unwarranted slap in the face from an old friend.
“For the average Canadian, this behavior just felt like deeply disrespectful treatment of your friend to the north,” says Craig de Blois, who worked for years with US wineries and spirits brands as an importer and agent, and president of Ontario’s Noble Estates Wine & Spirits. “We’re friendly and understated people, but we’re also up for a fight. Certainly if it feels like a fight to defend our lives. At this point, there’s no end in sight to the boycott.”
Cocktails Have Entered Their Cheese Era
Looking back, the dawn of the cheese-cocktail era feels inevitable. After surviving the sugar-laced Sex and the City-inspired ’90s, when cocktails were more like quaffable cupcakes than adult beverages, we arrived at a more adult place. Since the turn of the millennium, classic cocktails — made with a little more flash and aplomb and definitely better ingredients than your grandfather’s Old Fashioned and Martinis — have dominated.
And in the last decade, cocktails have taken a turn toward the culinary. There are smoky drinks, fat-washed drinks and cocktails dominated by salad ingredients. But unlike some of the other Instagram-ready savory cocktail trends — think fish sauced-spiked milk punch and ham-infused bourbon — cheese-based drinks and spirits are often about a lot more than creating something pretty and yummy.
Leave it to the French to ferment an elegant liqueur from a sharp and salty sheep’s milk cheese aged in limestone caves, known everywhere by its dewy appearance, green mold veining and rich tang.
“It began when I was creating ideal pairings between classic French cheeses and my fruit spirits,” says Bernard Baud, president of Distillerie Massenez in Alsace, France. “I worked with Xavier Thuret, a gifted fromagerie. We created a pairing for several Michelin-starred restaurants where we would put a stick of Comté in a shooter and then pour our raspberry eau de vie over it. When we created one with a spoonful of Roquefort and a pear eau de vie, people went completely crazy. And I thought, ‘Let’s take it a step further.’”
The resulting spirit, Liqueur de Roquefort, took two years to design, test and perfect through a series of macerations, filtrations and infusions that are kept secret but include a lot of Roquefort, neutral alcohol and patience. “To me, it is a wonderful addition to the playground of mixology,” Baud says. “I selected Roquefort specifically because I see it as a flagship of French gastronomy. Linking our spirits with this cheese felt very exciting. We launched in the U.S. in 2023, and the response was outstanding. Chefs use it regularly, and in a cocktail with creme de cassis in whiskey, it is unlike anything you’ve tasted.”
It’s Hard To Make Money in Restaurants. These Wines Help
Jeff Bezos and Elon Musk, aside, it seems everyone on the planet is walking a financial tightrope right now.
The cost of living has skyrocketed since the pandemic, and wages haven’t kept pace. Recent data from Bank of America Institute found that nearly a quarter of U.S. households are living paycheck to paycheck.
This obviously leaves less cash for dining and drinking out.
According to a recent report from YouGov, 37% of U.S. diners are eating out less than they did a year ago, with 82% noting that restaurant prices have increased in recent years. Only 28% believe restaurant prices are fair.
But, just as diners are feeling the crunch, so are the industry pros who are running these increasingly expensive hospitality outlets—which are already squeaking by on notoriously thin margins (roughly 3% to 5% on average).
“Core costs for restaurants have increased for nearly everything, including rent, electric, gas, food, wages, insurance,” says Jill Weber, a professional archaeologist and founder of the Philadelphia-based restaurant group Sojourn Philly. “And this is affecting everyone, not just restaurants. People are spending a little less, particularly on luxuries. Eating out is a luxury.”
In an attempt to lessen the squeeze, savvy beverage directors are recalibrating their drinks programs to serve their own bottom lines while prioritizing guest’s palates. Here’s how.
For Those With Cash To Spare, and a Bare Cellar: Rothschild Superstar Vintages Are on the Block
When Emperor Napoleon III ordered a classification of the best Médoc wine estates in 1855, only four of the selection from Bordeaux’s finest terroir were deemed worthy of being classed First Growth, and Château Lafite was among them. Thirteen years later it was bought by Baron James Rothschild and his surname was added, although he didn’t get to enjoy it for long as he died the same year.
Baron James was an extraordinary man — amasser of fortunes, thrower of parties, a bon vivant who hired the greatest chef of the era, Marie-Antoine Carême, and gave him carte blanche — but Château Lafite Rothschild may be his finest legacy.
The Bordeaux classification has barely changed in the intervening 170 years: of the first growths, the only addition was Château Mouton Rothschild, owned by another branch of the Rothschilds, in 1973. And, even in a difficult Bordeaux market, Lafite Rothschild’s reputation remains strong, which makes an auction that involves multiple old vintages, from two unimpeachable sources, as exciting today as one of Baron James’s dinners would once have been.
The first part of this landmark Sotheby’s auction (which will culminate in the first sale to take place in their new space, La Cave, at their flagship Paris auction house) involves historic vintages from the Pauillac cellars of Château Lafite Rothschild itself. The rest are from the private cellars of a member of the Rothschild family. All were meticulously checked by the auction house at the Château and labelled, capsuled, engraved and proof-tagged to ensure exemplary traceability.
There are bottles from the 19th century, including an 1870 (est. €45,000-60,000), which predates the dreadful phylloxera louse that destroyed so many vineyards and changed the landscape of European wine. There is a magnum of the 1895 (est. €48,000-€65,000), which puts me in mind of the joke attributed to Churchill that a magnum is the perfect size for two people, as long as only one of them is drinking. The 1912 (est. €7,000-€10,000 per three bottles) is another of the vintages featured, as are multiple bottles from three 1920s vintages.
ORGANIC FOOD
Report: Federal Food Contracts Fund Large Corporations, Sidelining Small Farmers
Friends of the Earth, today released a new report, Feeding Concentration: How USDA’s Commodity Food Purchasing Favors Industrial Agriculture, which analyzes the U.S. Department of Agriculture’s (USDA) $4.8 billion in food procurement for Fiscal Year 2024. The report finds that nearly half of all USDA food spending went to just 25 companies, with poultry giant Tyson Foods receiving the largest share despite a history of workplace safety, labor, environmental, and food safety concerns.
The findings emphasize that USDA’s purchasing practices continue to concentrate power among a small number of multinational corporations, limiting opportunities for independent producers and undermining goals of fair competition, sustainability, and public health.
Key findings include:
In FY 2024, USDA’s Agricultural Marketing Service (AMS) spent $4.77 billion on direct food purchases, with nearly half (46%) directed toward animal products.
USDA’s top 25 vendors received 45% of all USDA food spending.
Tyson Foods was the top supplier, receiving $238 million (5% of total spending and 43% of all poultry contracts).
Market concentration was evident across nearly every category: in 10 of 13 food categories, just five companies controlled the majority of spending — including 83% of pork, 76% of cheese, and 72% of poultry contracts.
“This report builds on our 2023 analysis of federal food procurement and shows that little has changed,” said Chloë Waterman, a senior program manager at Friends of the Earth and the lead author of the report. “USDA’s food purchasing decisions directly shape what ends up on the plates of millions of children, families, and seniors. By directing so much spending to just a few large corporations, USDA is missing opportunities to support healthier food and a more diverse, resilient agricultural system.”
THE JET SET
This Luxury Hotel Is Powered by Trees
A family-run inn that began as a miners’ tavern in 1567 has become one of Austria’s most remarkable alpine escapes.
Halfway up the majestic Wilder Kaiser mountain range, my guide Lois Manzl – who was born and bred right here in Tyrol – decided he wanted to play his trumpet for a while. Dressed in lederhosen he belted out a traditional alpine song as I caught my breath and felt sweat trickle down my body. I thought about the reward Manzl had promised me at the end of the climb: a 300-year-old hut sitting just at about 5,000ft (1,524m) above sea level, below the enormous petrous cliffs of the mountain.
In autumn 2024, the Hauser family installed a state-of-the-art power plant called “Stanglwirt BIO-Energie”, created by Tyrolean-based company SynCraft. The technology converts wood chips from naturally fallen local timber into wood gas, which produces electricity and heat – and even creates biochar, a nutrient-rich soil enhancer. It’s the first hotel on the planet to use the technology, and after a year of testing, Stanglwirt announced the system now fully powers the property. “It’s both carbon neutral and climate positive,” said said Balthasar’s daughter, Maria, who is part of the 18th generation of Hauser innkeepers.
ARTICLES I’VE RECENTLY PUBLISHED:
Uncertain Future for U.S. Spirits (Wine Searcher)
Cocktails Have Entered Their Cheese Era (InsideHook)
It’s Hard To Make Money in Restaurants. These Wines Help
How Lakes Quietly Shape the World’s Most Captivating Wines (Food & Wine)
How New York Winemakers Are Pushing Sustainability Beyond the Vineyard (New York Wines)
Redefining Quality, Efficiency, and Sustainability in the No-Lo Alcohol Space (Wine Industry Advisor)
Democratizing Wine Labels and Standardizing Product Imager (Wine Industry Advisor)
WineWallet Creates Community and Redefines DTC (Wine Industry Advisor)
What’s Winning in a Losing Wine Market (The Drinks Business)
Sweat the (Right) Small Stuff To Maximize Sustainability and Efficiency in the Vineyard (Wine Industry Advisor)
(Most) Fizz Flatlines Ahead of the Holiday Season (Wine Searcher)