At 150, Jack Daniel's inspires host of whiskey makers

LYNCHBURG, Tenn. — The cultural and economic significance of Jack Daniel's Tennessee Whiskey is hard to overplay.

In the year the company celebrates its 150th anniversary, it stands on top of the still-heap as the best-selling whiskey brand in the world.

From the iconic square bottle and black label to the aw-shucks small-town ethos, Jack Daniel's has proven to be a marketing juggernaut even if it kidnaps the cool from customers like Frank Sinatra from time to time. Sure, in-state rival George Dickel once had Merle Haggard as a pitchman, but no other spirit comes close in its ability to harness vibe while appearing to stay humble.

When state laws melted in 2013, small distilleries sprang forth to grab Jack's coattails and try to catch some of the stardust left in its Tennessee whiskey trail. Like most contemporary distillery start-ups, they found it easier to buy aged product and rebrand it than wait three years for their own product to age.

Jack Daniel's nixes Clay Travis deal over 'Confederate' controversy

Worse, many found a shortcut in selling hackneyed "moonshine" products of un-aged white whiskey. Cheap to produce and hard to swallow, many distilleries had to lean on syrupy flavor additives to choke down the raw hooch.

Despite losing the nomenclature battle, for now, distillers grudgingly admit that  the words "Tennessee" and "whiskey" on a bottle are like a liquid gold standard on shelves around the world. The global recognition of Jack Daniel's doesn't just help the state, either. Jack has been a pied piper for bourbon, generally associated with Kentucky, as well.

Every time it plants its flag in a new territory, it helps lead other American brands through the open doors. For the serious drinker or whiskey aficionado, Jack Daniel's is the gateway drink.

Tennessee whiskey is booming

Two dozen distilleries, some still awaiting permits, are members of the Tennessee Distillers Guild. That includes Jack Daniel's in Lynchburg, celebrating its 150th year.

Source: Tennessee Distillers Guild

In Tennessee, more than two dozen whiskey distilleries dot the landscape, from Memphis to Gatlinburg. Some are even making Tennessee whiskey the way George Dickel, Jack Daniel and Charles Nelson agreed on more than 100 years ago.

The upstarts are also making creative whiskies using other grains, like Corsair's quinoa spirit, Prichard's rum, vodka and the aforementioned "moonshine" in a broad array of flavors.

"The biggest hurdle is sitting on barrels of stuff," Will T. Cheek said. A Nashville lawyer who helped establish the Tennessee Distillers Guild, Cheek said to expect a lot of very good, very interesting 3-year-old whiskeys to start hitting the shelves in the next year.

Jack Daniel's opening store outside Lynchburg home

Cheek expected most distilleries to find success.

"I think the failure rate will be low because the barrier to entry is so high," said Cheek, who estimates average start-up costs at $1 million to $2 million. Deep pockets are needed to keep a distillery operating for the first few years because of the complexity of getting business permits, the time needed to get a still delivered and the months required to age most traditional whiskeys.

That's why so many make unaged products or buy from other manufacturers and relabel.

Jack Daniel launches barrel hunt for 150th anniversary

Because aging the product takes a long time, a producer is anticipating what the market will bear years ahead. Overproduce and you have a glut.

To say Jack Daniel's is confident about the future is not an understatement. Its new $103 million modular facility, built behind a ridge out of view of the crafted small-town image, shows a company betting on expansion.

Jack Daniel's owns 10.4% of whiskey sales in the U.S. and parent company Brown Forman reported at the end of this fiscal year that the Jack Daniel's portfolio of products grew 6%, according to Chicago-based market research company IRI, founded in 1979 as Information Resources Inc.

Jack Daniel's plans $140 million distillery expansion

Having now displaced rival London-based Diageo's flagship Johnnie Walker as the best-selling whiskey in the world, Jack Daniel is seizing this 150th milestone to further push its brand awareness. As part of its marketing push, the "little company" in Lynchburg hid 150 barrels around the world, inviting winners of the scavenger hunt to Lynchburg for a private birthday ceremony.

Given Jack Daniel's export prowess, it was no surprise that U.S. Trade Ambassador Michael Froman addressed area distillers while in Nashville promoting the Trans Pacific Partnership.

Charlie Nelson of Nelson's Green Brier Distillery, whose great-, great-, great-grandfather ran what was the state's largest distillery in the late 1800s, hosted the ambassador.

Fireball whiskey maker drops suit against Jack Daniel's

"It was our initial plan that we were only going to sell overseas," Nelson said. After looking at the tarriffs, he and his brother Andy Nelson reworked the plan to start in Nashville and sell domestically, but exporting is something they are interested in doing eventually.

When asked if selling his own Tennessee whiskey in the shadow of Jack Daniel's seemed like a good proposition, Charlie Nelson could only laugh and say, "Well, yeah."

Follow Jim Myers on Twitter: @ReadJimMyers

Jack Daniel's trivia quiz

1. While we are told that blood poisoning caused the loss of Jack's leg and ultimately his life, what is the myth behind the infected toe that supposedly started this grim sequence?

a. He was shot in a poker game.
b. A mule cart rolled over his foot.
c. He kicked an iron safe.

2. Jack's real first name is:

a. John
b. Jasper
c. Jacob

3. In 1885, the biggest distillery in Tennessee was:

a. Jack Daniel's
b. Green Brier
c. George Dickel

4. Jack entered the 1904 St. Louis World's Fair because:

a. The Tennessee Centennial Exposition of 1897 wouldn't let him enter.
b. At the time, St. Louis consumed more of his product than any other city.
c. He was considering opening a distillery called "Mountain Dew" in the Ozarks.

5. Which of the following are correct?
A. Jack Daniel's is a bourbon
B. Bourbon can only be made in Kentucky
C. Tennessee whiskey must be aged at least 4 years

a. B & C
b. A & C
c. A only

6. Jack Daniel's Tennessee Whiskey is aged in used Scotch whisky barrels. True or False?

a. True
b. False

7. Which music star sang, "Before I leave, brush my teeth with a bottle of Jack"?

a. Kid Rock
b. Frank Sinatra
c. Kesha

8. Which of the following is not in Jack Daniel's recipe?

a. Rye
b. Wheat
c. Barley

9. In 1987, Jack Daniel's  lowered the proof of its iconic "Black Label" from 90 to 86. What year was it watered down to 80 proof?

a. 2001
b. 2002
c. 2003

10. How many people have worn the mantel of Jack Daniel's "master distiller" in the last 150 years?

a. 4
b. 6
c. 7

Answers: 1. c; 2. b; 3. b; 4. a; 5. c; 6. b; 7. c; 8. b; 9. b; 10. c