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Your ‘Craft’ Whiskey Is Probably From a Factory Distillery in Indiana

Modern-Day Snake Oil

The artisan whiskey industry has a big secret—many of the ‘small-batch’ distillers are actually buying their product from a large factory in Indiana.

Eric Felten

Updated May. 20, 2019 11:29AM ET / Published Jul. 28, 2014 5:45AM ET 
BEAST INSIDE

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Read the promotional materials for the Rancho de Los Luceros Destilaría and you form an image of a supremely artisanal effort. The distillery creates “small batch heirloom spirits handcrafted in New Mexico.” Each batch of their rye whiskies, vodka, and gin is “individual and unique,” and “each bottle is hand bottled and hand marked with batch and bottle number.”

These are the standard selling points of the craft-distilling movement, with its locavore lingo, terroir talk, and handmade hype. But, in the new crowd of micro-distillers, it is now standard for the alcohol being sold to come not from their own distinctive stills, but from a hulking factory in Indiana.

Lawrenceburg, Indiana (not to be confused with bourbon-locale Lawrenceburg, Kentucky) is home to a massive brick complex that cranks out mega-industrial quantities of beverage-grade alcohol. The factory, once a Seagram distillery, has changed hands over the decades and was most recently acquired by food-ingredient corporation MGP. It is now a one-stop shop for marketers who want to bottle their own brands of spirits without having to distill the product themselves. MGP sells them bulk vodka and gin, as well as a large selection of whiskies, including bourbons of varying recipes, wheat whiskey, corn whiskey, and rye. (They also make “food grade industrial alcohol” used in everything from solvents and antiseptics to fungicides.) Their products are well-made, but hardly what one thinks of as artisanal. And yet, much of the whiskey now being sold as the hand-crafted product of micro-distilleries actually comes from this one Indiana factory.

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