The Scotch Malt Whisky Society has been in operation since 1983

If you’re a bourbon drinker, you’re likely acquainted with the idea of sourced whiskey. This is where a distillery or non-distilling producer purchases and resells whiskey that they didn’t distill. This practice is utilized in whiskey-making countries worldwide, but it’s often associated with American whiskey. Although sourcing has become more accepted, there are arguments against it due to its lack of authenticity, implying that selling someone else’s product isn’t as genuine as making it oneself.

This viewpoint is predominantly a result of today’s whiskey market. Sourcing has always existed in the whiskey industry, and many of today’s most sought-after heritage brands are sourced products. Despite this, the modern whiskey enthusiast demands more clarity from producers. Over the past decade, distilleries and non-distilling producers have replied appropriately, frequently providing information on mash bills, barrel entry proofs, and where the whiskey was aged.

While this additional production data suffices for most whiskey enthusiasts, many sourced products are still mysterious, particularly those that are blends of straight bourbon or rye whiskies from multiple locations. If you’ve seen a whiskey bottle label indicating that it was distilled in Indiana, Tennessee, or Kentucky, you have just enough information to realize you don’t know the whole story. A new trend of transparent whiskey production has emerged in the U.S., inspired by a successful business model long-used in Scotland.

No two barrels of whiskey are ever the same.

The practice of independent bottling of whiskey is akin to sourcing, the difference being the selling company usually does not distill the whiskey themselves. Nonetheless, unlike most sourced whiskies, there is complete transparency about the source distillery prominently displayed on the label. However, why would a distillery permit someone else to sell their brand of whiskey? This can be explained by the unpredictable nature of the whiskey-making process. It often happens that two barrels filled with the same spirit and stored in the same conditions produce end products with distinct tastes. Due to this variability, sometimes, the taste does not meet the specific distillery style.

Such barrels which do not conform to the profile may be procured by independent bottlers in a mutually beneficial transaction: the distillery is able to get rid of unsuitable barrels while the bottler benefits from having the distillery’s name on their label. Distilleries often let their official brand name be replaced with an independent bottler’s trade name. For instance, one might not see a lot of independently bottled whiskey from Balvenie or Laphroaig, but there are plenty of “Burnside” and “Williamson” available. Surplus or experimental casks are sometimes sold to independent bottlers as well, but these are not necessarily substandard barrels. Instead, their flavor might not match the branding of the distillery. This practice of selling surplus barrels is becoming increasingly scarce with rising global demand for whiskey.

Once procured by an independent bottler, they can manipulate the barrel’s contents as per their wish. Some barrels are quickly bought and sold, yet most continue to mature in the warehouses. It’s common to transfer many barrels to secondary casks ahead of bottling, thus adding new dimensions of flavor to the original spirit. The secondary maturation of some barrels could be pivotal in transforming a mediocre release into a market-worthy product. Some bottlers also mix together a small number of barrels from the same distillery for an independent bottler release.

The concept of independent bottling in the United States presents a unique opportunity for the numerous distilleries producing whiskey across the country. A small-scale distillery crafting exceptional whiskey in locations such as Ohio or Montana may not possess the necessary marketing budget or distribution network to drive their brand beyond their local vicinity. An independent bottler can significantly shift this dynamic. By launching products that highlight the source distillery’s name on the label, these smaller distilleries are given a chance to reach a national audience, with the independent bottler taking on the complicated task of marketing, selling, and distributing the whiskey.

There are two primary enduring entities in the American independent bottler sector. The United States division of Scotch Malt Whisky Society (SMWS) has been functioning since 1993, providing American single malt enthusiasts with distinctive barrels of scotch whisky for over three decades. Although the SMWS has since expanded to include bourbon, rye, rum, gin and armagnac among other spirits, it continues to focus predominantly on sourcing and selling scotch.

Single Cask Nation was established in 2011 by self-described whisky aficionados Jason Johnston-Yellin and Joshua Hatton. Much like the SMWS, they majorly concentrate on scotch whisky but have adapted to include other styles such as bourbon, rye, rum and American single malt. Both organizations source whisk(e)y globally, with a special emphasis on Scotland, hence leaving a large segment of the craft American whiskey market largely unexplored.

Lost Lantern’s Midwest Collection

Thanks to a rapidly-growing whiskey consumer market, there is a new generation of independent bottlers focusing exclusively on smaller American distilleries. Vermont’s Lost Lantern is the torchbearer of this new-wave, American IB movement. Founders Nora Ganley-Roper and Adam Polonski are passionate about finding great American whiskey and began operations with a two-year, coast-to-coast road trip in search of the right barrels. Similarly, Two Souls Spirits, based in Florida, partners with producers across the country to select and release single barrels from distilleries that don’t have a national footprint.

Both companies emphasize transparency, with detailed articles about their processes, technical specs on every product page and an extremely active social media presence. Between these two producers, distilleries from non-traditional whiskey making states Wisconsin, Iowa, Ohio and New Mexico have gotten national exposure. Lost Lantern and Two Souls go so far as to give some of their releases descriptive titles, setting the stage for each expression’s flavor profile. Two Souls’ latest bottling from Wollersheim Distillery is called “Wisconsin Waffles,” featuring waffle and maple syrup tasting notes, and Lost Lantern’s “Gentle Giant,” from Balcones Distillery in Texas, showcases a softer whiskey from a distillery known for big, bold flavors.

Unlike traditionally sourced American whiskies, there’s a lot of variability in the independent bottling world. With an ever-evolving lineup of single barrels from distilleries across the country, don’t expect to find two IB expressions that taste exactly the same. What IB bottles lack in consistency, though, is made up for with unique flavor sets that you may not otherwise find from your favorite distillery’s standard range. More importantly, for the craft producers around the US, independent bottlers connect small distilleries to the consumers most likely to appreciate their products, no matter where they live.