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Led By American Whiskey, Private Barrel Spirits Surge At Retail

September 29, 2023

Private barrel spirits are driving gains at retail stores as off-premise operators look for ways to offer exclusive labels at an affordable price. American whiskies lead the charge, but many retailers are also experimenting with private barrels of Tequila and rum, as consumers seek out one-of-a-kind offerings.

One barrel of whiskey can create anywhere from 150 to 250-plus 750-ml. bottles, and many distilleries offer special labels for retailers who buy a full barrel so that the exclusive selection is clearly labeled as one-of-a-kind. “The single barrel program at Frugal MacDoogal has been a huge success,” says store founder and owner Charles Sonnenberg. With its location in downtown Nashville, Tennessee, Frugal MacDoogal moves a big amount of American whiskey, and private barrel offerings are a major draw. Sonnenberg says the store averages 20 private barrel labels at any given time, led by Bourbon but also including rum and brandy. The special bottles retail anywhere from $45-$150 a 750-ml.—usually priced about $10 more per bottle than a standard label from the same distillery—and most sell out in about three months, but some big-name labels go much faster.

Some of Frugal MacDoogal’s recent offerings have included store-picked barrels of Bulleit Bourbon ($60 a 750-ml.), Cardinal Spirits High Rye Bourbon ($70), Nashville Barrel Co. rye ($80-$90), and Starlight Distillery Bourbons finished in Armagnac and triple sec barrels ($80-$82). Beyond American whiskey, the store has also purchased entire barrels of Rolling Fork Single Cask rum ($80) and Nashville Barrel Co.’s Barrel Aged Agave spirit ($67).

The Pascale’s portfolio of three beverage stores in greater Syracuse, New York has a robust private barrel program. Pascale’s Liquors in Liverpool, New York generally offers four to five private barrel whiskies at any given time, averaging roughly 20 per year; this year was the first time the store also added a Tequila and rum, both of which did well. The private barrel offerings generally range from $35-$135 a 750-ml. bottle, and most sell out in two or three months.

General manager Nick Pascale says private barrel labels like his Elijah Craig 94 proof sell out in about ten weeks, which is about three times faster than the standard Elijah Craig label. But specialties like Old Forester Barrel Proof Single Barrel can be completely depleted during pre-sale before they even hit store shelves.

The notion of scarcity among whiskies is fueling the private barrel trend. For Wally’s Wine & Spirits, with locations in Beverly Hills and Santa Monica, California and Las Vegas, private barrel selections oftentimes require more consumer education, but the effort is worth the reward. Wally’s spirits buyer Daniel Franks says the company usually stocks about 12 offerings a year, spanning from whiskies by WhistlePig, Old Weller, and Great King Street to Gosling’s rum ($55-$225 a 750-ml.). Market Watch has more on the private barrel spirits market.

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