Last July I shared my thoughts on proposed changes to TTB rules, namely expanding the ‘standards of fill’ to include the international standard of 700 mL. In short, most of the whisk(e)y world (and distilled spirits in general) use a 700 mL bottle size. The U.S. had adopted 750 mL (along with others, such as 375 mL, 1L, etc). Because this single market would require a different bottle and bottling process, it unfortunately limited exporting to that market to those who were willing to invest in all that entailed. While the major producers would sell enough in volume to make it worth while, this did restrict a lot of independent bottlers from exporting their goods.
I’m elated to share that the TTB announced today that effective (December 29, 2020), they will “publish a final rule in the Federal Register that, among other things, amends TTB’s regulations that govern wine and distilled spirits containers by adding seven new standards of fill for wine and distilled spirits.” For distilled spirits, the new container sizes are:
- 1.8 L
- 900 mL
- 720 mL
- 700 mL
Of those, the 700 mL is the one I’m most excited about. Given some current tariffs in place on single malt scotch (as well as the uncertainty of the COVID-19 pandemic), we may not see the floodgates open right away. But this is definitely good news for those who would like to see a broader selection of independent bottlings and other exclusives come to our shores.
Cheers!
Gary
While I do not disagree with the points you draw from these new TTB Standards of Fill; I must point out that the smaller sizes that will be available to US Distillers in the ‘home market’ almost certainly will result in an irresistible option to offer the US market some (or many) of these smaller sizes at the MSR prices previously used for the comparatively larger sizes we’ve become accustomed to buying. The greater profit of ‘more-bottles-per-barrel’ will be almost impossible to resist . . . at least in the long term. For a while some distilleries will decide that a competitive advantage can be had (while not investing in new bottling line equipment) by keeping the larger “American-Market” sizes; but, eventually shareholders and board rooms will demand the lager profit (smaller) sizes. This is, of course. merely an outsider’s view and may be entirely incorrect in the case of the large distillers who already have the smaller size options due to their overseas market penetrations.
Quite true, and I expect you are exactly right in what will transpire in the future. I would encourage savvy consumers to vote with their wallets. In the last 5 years, I’ve elected to not buy brands who raised their prices dramatically while doing nothing (or even reducing the age in some cases) to the product. I’ve also tried to buy more from distilleries who have kept prices damn near flat over the last 8 years (cheers to you Wild Turkey 101 Proof!) But they are the exception. I won’t be surprised if 20 years down the line, we don’t see 750 mL offered at all (or rarely). I can see some brands making this switch “in lieu of a price increase” (I would be pleasantly surprised to see any make the switch while LOWERING their price, but not holding my breath). Not to pick on any one brand (will try to spread the love equitably here), but for illustrative purposes – Buffalo Trace was $20 locally 7 yrs ago; now the same product/volume is $25 or $26 (when you can find it). That’s a 20% price increase, where keeping the price the same for 50 mL less would be the equivalent of a 6.67% price increase (or if BT would have moved from $20 to $21.33). Some brands have made more significant increases than that (e.g. Bookers) or have dropped age statements while keeping the price the same (e.g. Elijah Craig). I would hope that those who make the switch keep the prices the same a bit longer than they otherwise would, but as long as the market will bear it – they’ll charge what they can. At least now we’ll have more options to vote for, which may help in a competitive respect (or not, and we’ll just have more choices to drown our sorrows in!)