Bloomberg: Your Next Investment Bourbon Should Be a Brandy

Illustration by Nico H. Brausch

By Christopher Ross

June 18, 2024 at 6:27 AM UTC

Bourbon collectors, I feel your pain. What was once a niche hobby for booze geeks has become a forbiddingly expensive and competitive endeavor, what with the annual Pappy Van Winkle lotteries (and heist) and secondary markets where a $2,000 bottle of 20-year Eagle Rare can leap to $14,000 in just five years.

Still, if you love the hunt for artisanal, rare spirits, have you considered pivoting from grains to grape? The warmth and woodsy flavors of single-barrel, full-strength cognac and Armagnac can closely resemble the taste of bourbon, at a more attainable price point.

“Folks who’ve had the opportunity to taste these bottles notice, wow, there’s that concentration, that similar profile of combining fruit and structure from the wood,” says Greg Faron, co-founder of new importer Bien Élevé in Washington, DC. Some vintage brandy can compare in flavor to glut-era bourbon, he says, referring to the 1970s-to-early-’90s period when distillers cleared out older, languishing whiskey stock under younger labels.

Bien Élevé joins established importers PM Spirits and Charles Neal Selections—plus upstarts such as Bhakta Spirits, from the founder of WhistlePig whiskey—as part of an expanding network of bottlers and retailers working with aficionados to build a ground floor for collecting these complex liquors.

Their biggest obstacle? The French.

See, when it comes to investment bourbon, what’s most sought-after are single-vintage bottles, ideally single-barrel, bottled at cask strength—offering a premium of intensity and purity and rarity, traceable to a specific location and point in time. But that’s exactly the opposite of how French brandy is traditionally produced.

Distillers at major cognac houses such as Hennessy and Courvoisier believe the beauty of their craft lies in artful blending; they lock up eaux-de-vie (unaged spirit distilled from grapes) from hundreds of growers to do so. There are strict brandy-making rules around grape varietals, distillation and minimum aging time in oak barrels, but blending isn’t actually a prerequisite.

“I’m French, so I can say this: The French feel they are the guardians of a tradition, which makes them not innovate whatsoever,” says PM Spirits founder Nicolas Palazzi, one of the first importers to bring unblended, collector-bait brandy to the US.

The Cognac region, Palazzi says, is particularly disincentivized to put out the kind of artisanal spirits that US buyers are clamoring for. If a producer decides to set aside a barrel for aging as a vintage cognac, a member of the Bureau National Interprofessionnel du Cognac (BNIC) must be present for its sealing. To open that cask for any reason, including if it’s leaking or damaged, they need to pay for another inspector to come out and oversee the breaking of the wax seal.

Moreover, Big Brandy doesn’t see much long-term strategy in single-barrel bottlings, as it’s only able to achieve its current sales volumes by blending spirit from different casks; the ultrapremium $4,000 Rémy Martin Louis XIII may contain as many as 1,200 eaux-de-vie, some as much as a century old. There are precious few growers in Cognac who don’t sell to the mass-market houses.

Steve Ury, a well-known former bourbon blogger, takes a cynical view of the Kentucky gold rush, so he turned his gaze toward France. He says his steadily growing Facebook group, Serious Brandy, now counts more than 3,000 members. He says American buyers have had to train smaller brandy producers to fill that desire gap between collectors and the conglomerates.

“Their first instinct was, you blend everything, you water it down to 40%—that’s what people want,” Ury says. “And we had to go and say, ‘No, that’s not what we want. We want to see those barrels. Just put ’em in a bottle. We don’t need you to do anything else.’ ”

There’s casks all over the place, all over France, sitting in garages and sheds.

Cognac houses Pasquet and Grosperrin are among producers that have gotten the memo, as well as L’Encantada Armagnac, he says, which can be “very bourbon-like. It’s dark and oaky because they don’t do as much treatment to it, they just sort of leave it in the barrel.”

Reid Bechtle, a collector in Virginia, agrees. He was so enchanted when first tasting L’Encantada’s Armagnacs in 2015 that he and fellow members of his private whiskey club—1789b, which buys whole barrels of spirits—foresaw the untapped demand and purchased three on the spot. Now, he says, L’Encantada’s fame has grown, and its small-batch, orange-wax-topped bottles command such a cult following that it’s often impossible to find at retail. “What we used to buy for $60 is now $300.”

For your own collection, this month PM Spirits is releasing a L’Encantada discovery box ($211) featuring 200‑milliliter independent bottlings of brandy distilled by three different domaines over three different decades: 1999, 2001, 2012. Dozens of years in barrel reveal beautiful tertiary aromas of dried citrus, tobacco and resin.

Cognac Frapin, a family-owned producer founded in 1270, focuses mostly on traditional aged blends, but it, too, is coming around, with help from Palazzi. A 1994 vintage released in May is a first for the maison: single-estate, single-cask, full-proof. Balancing the richness of the wood with subtle orchard fruit, vanilla and leather, it costs $265. Only 500 bottles were made.

Similarly, Bien Élevé imported a single-cask 1967 Cognac Lheraud Bons Bois ($640), perfumed with exotic spice and dried figs and elegantly rounded on the palate. “It’s become more of a focus in France, finally, for single-barrel picks,” says Faron, the Bien Élevé co-founder. Just a dozen of the 132 bottles of the Lheraud Bons Bois were allocated to the US.

I wouldn’t be surprised if major producers started earmarking exceptional casks as well, given that collectible, traditional blends have stalled. The compound annual growth rate by volume of ultrapremium-and-above French brandy was down 2% globally from 2018 to 2023, compared with ultrapremium bourbon’s 22% growth, according to IWSR, a global beverage alcohol data specialist.

“With French brandy, the extraordinary and extensive histories—over 700 years for Armagnac alone—and the tremendous ageability of these spirits, arguably far greater than most whiskeys, should mean that the possibilities for finding great spirits are near endless,” says Nima Ansari, a buyer for Astor Wines & Spirits in New York who stocks about 20 bottles of boutique brandy. Cognac can age longer than bourbon or American rye because of a cooler climate and less char on what are usually older, larger barrels.

But the ultimate factor may be the love of the hunt. As in the early days of searching for bourbon “dusties” on liquor store shelves, there’s a sense of undiscovered treasure out there, if you know where to look and strike quickly when opportunities arise.

If a vineyard hasn’t presold all its grapes to a brandy house, some farmers might have their own spirits distilled for consumption among friends and family or as an investment. “Every farm is a potential producer,” Ury says. “There’s casks all over the place, all over France, sitting in garages and sheds.”

In other words, there’s a lot of potential boutique brandy out there—and it’s all rare. Consider: If an importer comes across the private stash of an elderly couple, buys it and releases 170 bottles, it might be all that family farm ever produces.

For collectors who get a thrill from acquiring a truly one-of-a-kind spirit, it’s tough to put a price on those bragging rights. At least for now, though, a couple hundred bucks ought to do it.

Liquor.com: The 11 Best Vermouths for a Negroni, According to Bartenders

Take the guesswork out of your vermouth choice with these expert recommendations.

ermouth is frequently a forgotten cocktail ingredient. When it comes to classic Martinis or Manhattans, it’s often overshadowed by the base spirit.

However, if you consider that the Negroni consists of equal parts gin, vermouth, and aperitivo, your choice of vermouth suddenly becomes more important.

“Vermouth is the often-overlooked instrument in the symphony of a well-crafted Negroni,” says Stevan Miller, the bar lead at Michelin-starred Esmé in Chicago. “It orchestrates a delicate dance between the boldness of the base spirit and the bitterness of your chosen aperitivo. Vermouth is a diplomat. It harmonizes the diverse elements at play.”

We consulted bar pros from around the country to share their preferred sweet vermouths to use in a Negroni. Try one of these recommended bottles for your next cocktail hour.

Best for a Dry Negroni: Navazos Palazzi Vermut Rojo

Robby Dow, bar director of Olivero in Wilmington, North Carolina, is excited by the emergence of sherry-based vermouths. This particular bottling, a favorite of his, is a collaboration between Nicolas Palazzi of PM Spirits and sherry broker Equipos Navazo.

“The duo serve as a guiding light for sourcing and importing some of the best products from around the globe,” says Dow. “This vermouth is no different.”

It’s a great choice for those who may have grown weary of the juicy, vanilla-forward Italian styles of vermouth, he says. “Navazos Palazzi Vermut Rojo comes across much drier and more savory with notes of juniper, anise, and coriander, with a subtle off-dry sweetness from the oloroso sherry,” says Dow. “These savory elements are a perfect marriage when stacked up next to Campari and a nice bold London dry gin.”

Distillery Nation – Sipping Success: Exploring Artisanal Spirits With Nicolas Palazzi

podcast ·Nov 29, 2023

In the latest episode of The Distillery Nation Podcast, featuring none other than Nicolas Palazzi, the mastermind behind Brooklyn-based PM Spirits. As the owner, importer, and wholesaler of some of the most exquisite spirits in the market, Palazzi takes us on a journey through the nuances of his craft in this captivating episode.

Ever wondered how someone finds their way into the spirited realm? Palazzi shares his fascinating journey, revealing the passion and determination that fueled his entrance into the spirits industry. From humble beginnings to becoming a prominent figure in the world of artisanal spirits, his story is nothing short of inspirational.

Choosing the right distributor can make or break a brand in the competitive spirits market. Palazzi provides valuable insights into this crucial aspect of the business, offering tips on navigating the complex landscape of distributor selection. For aspiring distillers and entrepreneurs, this episode is a treasure trove of practical advice on building successful partnerships that can elevate your brand to new heights.

PM Spirits is renowned for its discerning taste when taking on new projects. Palazzi delves into the criteria that guide PM Spirits in selecting the next venture. From the uniqueness of the product to the story behind it, learn what sets apart a project that aligns with PM Spirits' vision and ethos.

The episode is not just a conversation about spirits; it's a masterclass in entrepreneurship and the art of crafting exceptional libations. Whether you're a seasoned professional in the industry or an enthusiastic consumer eager to learn more, this episode promises to leave you with a newfound appreciation for the craftsmanship behind each bottle.

Tune in now to The Distillery Nation Podcast and join us as we uncork the secrets behind PM Spirits with Nicolas Palazzi. Cheers to a spirited conversation that will leave you craving the exquisite taste of artisanal spirits!

The Agave Social Club: PM Spirits and Nicolas Palazzi

I speak with PM Spirits founder Nicolas Palazzi about his journey into bringing incredible spirits to the market. We discuss and taste their super small batch PM Spirits Tequila Blanco as well as talk about some of the other brands they are working with. To learn more about PM Spirits, you can go to https://www.pmspirits.com

Wine Enthusiast: Why Spanish Brandy Needs a Rebrand

There are many garish bottles on liquor store shelves, but none do more peacocking than Brandy de Jerez. Surely, you’ve noticed the bottles I’m talking about—even if, like most people, you’ve never bought one. Most Spanish brandies boast crimson or gold labels. One dons a pretty ribbon, while a rival sports an intricate faux-gilded pattern. Some are affixed with regal wax seals, while others announce their presence in fancy Renaissance-Faire-ish fonts. Then there are the courtly names themselves: Carlos I, Cardenal Mendoza, Gran Duque d’Alba.

“Subtlety isn’t the middle name of Jerez’s brandy men,” once wrote spirits critic F. Paul Pacult in his encyclopedic guide, Kindred Spirits.

In the past, I’ve described Brandy de Jerez as that buddy who tries just a bit too hard—the one with the flashy watch, the giant belt buckle, the ridiculous gold chain or too much cologne. Sometimes, when I open a bottle, I feel as though I should be wearing a ruffled collar, like a courtier of Philip IV. Regardless, I happen to enjoy Brandy de Jerez. I believe, for instance, that it works better in many classic brandy cocktails than Cognac. But I often feel like the odd one out with this opinion.

My big takeaway? Spanish brandy is in desperate need of a rebrand, and there has mercifully been a small movement toward change in the right direction. But before I get into the signs of hope for Spanish brandy, it’s important to consider the larger state of affairs.

Last year, François Monti, a drinks writer based in Madrid, called out Spanish brandy in his industry newsletter, Jaibol. The rant was prompted by Monti’s outrage over a historic Brandy de Jerez brand’s attempt to reinvent itself as a drink to be mixed with Coca-Cola. Brandy de Jerez, Monti writes, is an appellation “not very clear about where it is going.”

It remains a fact that fewer and fewer people drink Brandy de Jerez. Since 2008, total sales have dropped from 45 million liters to around nine million liters, with consumption dropping 30 percent between 2012 and 2016 alone. During the last decade, exports fell an additional 15%, and things continue to trend downward. Spanish brandy’s largest export markets are now the Philippines and Equatorial Guinea—the latter consuming six times more Brandy de Jerez than the U.S.

Why is this? In his newsletter, Monti minces no words. “Brandy de Jerez does not stand for the quality of its raw material,” he writes. Terroir also means little: “It is very complicated to talk about the terroir of Brandy de Jerez… the vast majority of the raw material comes from outside the [Sherry] triangle,” the historic region bounded by the city of Jerez on the east and to the northwest and southwest respectively, the ports of Sanlúcar de Barrameda and El Puerto de Santa Maria.

It’s hard to say what terroir (or transparency) even means for Brandy de Jerez. The name itself invokes the city in Andalucía that’s famous for Sherry. But the grape mostly used for the brandy is not Palomino (as with Sherry) but Airen, an insipid neutral grape said to be the most planted in the world, grown mostly on agribusiness vineyards in La Mancha. Most of the brandy is distilled outside of the Sherry triangle, what the regulatory council calls the “processing zone,” before it comes to age in the vast solera cellars back in Jerez. By law, Brandy de Jerez must age in Sherry barrels, but there’s little differentiation between brands.

Then there are Spanish brandy’s elevated sugar levels: Up to 35 grams of sugar per liter is allowed. This sweetness goes against the current consumer demands for drier spirits.

Finally, Monti called out the dated, stodgy brand image:

“Emperors, cardinals, aristocrats, great battles of Catholicism: the names and image of some of the brands are an obstacle for a more modern consumer. Carlos I, a brand that has made a great effort to modernize its image and that has a clear strategy of going towards the premium segment, still mentions on its website ‘Spirit of Conquest.’ ¡Ay!”

It adds up to a spirit that the younger generation in Spain sees as hopelessly old-fashioned, the drink of their grandfathers—with a cringe-y legacy of being cosa de hombres (“a man thing”) as this television ad for Soberano from the 1960s suggests. (Even darker was this horrible ad.)

All of this is a shame. I have been a big advocate for Spanish brandy over the years. Back in 2015, Monti and I actually presented a panel on the spirit at Tales of the Cocktail. Even then, we spoke about the same challenges that Brandy de Jerez faces today, which tells you how little has changed in the past eight years.

At the time, we implored brands to re-evaluate the high sugar content and additives in a world that wants products that are dry and additive free. We bemoaned the low level of alcohol by volume. Most of it is imported into the U.S. at just 40%, but much of what’s sold in Spain and elsewhere falls below even that, down to 36% abv. We even wore ruffled collars to underscore silliness and outdatedness of the category’s imagery.

In Monti’s article, the last straw for him was the suggestion of combining brandy with Coca-Cola, pushed by one big brand’s marketing department. He pointed out a similarly misguided marketing attempt a decade ago by the producers of Calvados, a similarly troubled spirit, who tried to push something called the Calvados Tonic. In France, Calvados Tonic was an unmitigated failure as a marketing campaign. The Spanish-brandy-and-cola, I believe, will meet the same fate. “One of the most uncomfortable truths in the spirits industry is that hardly any recent trends have been created by brands,” Monti notes.

The real challenge for Brandy de Jerez is to understand what premium spirits drinkers really want. But there are signs of hope in a growing number of smaller producers who are more transparent about origin and aging.

Among them is a project by Sherry negociant Equipo Navazos, which has partnered with importer Nicolas Palazzi of PM Spirits to release a series of single-cask brandies, all without additives and bottled at cask strength.

On several occasions, I’ve tasted these brandies from the barrel with Eduardo Oreja of Equipo Navazos. These are racy, elegant, dry brandies that still retain the rich, dried fruit and full-bodied characteristics of classic Brandy de Jerez. This is revolutionary stuff.

“I had always associated Spanish brandy with some subpar version of Henny VS, some dark syrupy crap that makes the floor sticky if you drop some,” says Palazzi. That was before he tasted Equipo Navazos’ casks. “My mind was blown. I realized that at its core the additive-free product can be magnificent.”

I love the Navazos Palazzi 7-year-old aged in amontillado cask. This unique brandy was made from 100% Pardina (an obscure grape I didn’t know) and bottled at cask strength, 42.5% abv. You can find it here and here for $80. There are also still a few rare bottles of the stunning Navazos Palazzi fino Sherry cask floating around (such as here), also for around $80. For a premium brandy, something like this under $100 is well worth grabbing.

Navazos Palazzi’s most recent brandy release is aged in Pedro Ximenéz casks (bottled at 43% abv) is delicious, rounder and darker than the amontillado or fino casks. Though the cask is part of a classic solera, the average age of the brandy is at least 35 years old. It’s slightly pricier, at around $130 per bottle.

While those single-cask selections may represent the zenith of Brandy de Jerez production, I still also recommend checking out a few of the classic expressions for comparison. I’ve always liked Lepanto Solera Gran Reserva, which at under $50 is a very good value, and relatively easy to find. Instead of Airen, Lepanto uses the same Palomino grape from which Sherry is made. The result is a brighter, nuttier and more complex brandy than most in the category.

And if I ever want to remind myself what old-school Spanish brandy is like (complete with garish label and packaging) I go for the Gran Duque d’Alba. The Duke brings all that big sweet, ripe, creamy, molasses flavor, though you can still feel the attractive notes of the Sherry cask. For $40, it’s a solid cocktail pour.

Mix it in the classic brandy cocktails we talked about a few weeks ago and see for yourself. My personal favorite is a drink I call the Little Madrid (recipe below). With all apologies to my colleague Monti in Madrid, you might also even enjoy it with a Coca-Cola.

In Praise of La Hora del Vermut, Spain’s Cherished Vermouth Hour Tradition

I’ve been missing Barcelona lately—where not long ago, I explored wine bars in search of new-wave Spanish wines—so on a recent afternoon I made a visit to Jose Andres’s Mercato Little Spain at Hudson Yard in Manhattan. Specifically, I longed for the days I spent drinking in the city’s vermuterias. So I went to Mercato Little Spain’s vermuteria with the cheeky name, Bar Celona. (Get it?) I ordered a Yzaguirre Rojo, a classic Catalan red, and was immediately transported back to a sunny la hora del vermut.

Vermouth hour is a sacred time of day in Barcelona. Originally, it meant sometime around noon or 1 pm, when you grabbed a vermouth and a snack to tide you over until lunch. But these days, the vermouth hour can be any time before a meal, though it usually means day drinking. A vermouth over ice, with maybe a slice of citrus and an olive, along with potato chips, some kind of tinned fish, and gilda (skewers of olive, pepper, and anchovy) is one of the loveliest ways to pass an afternoon.

Spanish vermut generally has a different taste than its Italian counterpart. It’s more citrusy, brighter and less bitter, meant to be drunk not in cocktails but on the rocks with food. To be perfectly honest, Spanish vermouth is not meant to be a complex drink you spend a lot time pondering over.

Because Barcelona had one of the largest communities of Italian immigrants when Italian vermouth was becoming widely exported during the late 19th century, vermouth soon became popular in the city. The local Martini vermouth importer even created a bar that was designed by famed Catalan architect Antoni Gaudí. This is when vermouth became the drink of choice in Catalonia, often taken by families after church and before lunch on Sundays. But by the late 20th century, vermouth languished as an old man’s drink.

Then, about a decade ago, a younger generation of trendsetters in Barcelona set off a vermouth renaissance. Part of it was a new wave of local vermouth brands, such as Casa Mariol and Morro Fi. Part was also a sense of pride in local products as Catalan nationalism grew.

These days, while much of the vermouth production happens in Catalonia, the drink has become wildly popular all over Spain. In Jerez, where Sherry is becoming a harder and harder sell, several well-known Sherry houses have started making quality vermouth.

Still, Barcelona is the vermuteria capital. As I sat at Bar Celona, I thought about some favorite vermuterias: the century-old Bar Electricat, in the old port neighborhood of La Barceloneta, where you drink vermouth from an unmarked bottle, which the waiter measures to calculate your bill; cozy, local Cala del Vermut Celler, near the Gothic cathedral, where you can eat fantastic tortilla and jamón with your vermut; the more posh Quimet & Quimet in the Poble Sec neighborhood, with an amazing array of tinned fish and montaditos.

I couldn’t necessarily tell you the brands of vermouth I drank in those places. But it doesn’t really matter. In the end, Spanish vermouth is all about a vibe.

7 Spanish Vermouths to Try

Barcelona was the spot where Spain’s vermouth renaissance started, and so Catalonia remains a source of great vermouth. But there are growing number of vermouth brands now coming from Jerez, as Sherry houses look to diversify their offerings.

Navazos-Palazzi Vermut Rojo

This offering from famed Sherry negociant Equipo Navazos and importer PM Spirits comes from Jerez. Bright, citrusy and super floral, with notes of lavender and chamomile on the nose and tea-like notes on the palate. Great on ice or in cocktails.

The Ultimate Guide to Aperitifs

From bittersweet to botanical, there’s an appetite-stimulating aperitif out there for everyone in this growing category

by Tyler Zielinski Mar 10, 2022, 10:04am ESTPhotography by Michelle Min

HumansHumans are creatures of habit, and that’s especially true when it comes to our drinking rituals. We drink coffee for its ability to wake us up, herbal tea for relaxation, and wine to pair with food. But to stimulate the appetite before a meal, there’s one drink category most Americans tend to forget about: the aperitif.

The aperitif — a word derived from the Latin verb “aperire,” meaning “to open” — is a category of low-ABV beverages defined by when they’re consumed rather than how they’re produced. An aperitif can be a liqueur, fortified or aromatized wine (e.g., sherry or vermouth, respectively), or an aperitivo bitter (e.g., Aperol or Campari), making the category diverse and approachable for both bon vivants and novice drinks alike.

While the mindful and ritualistic consumption of aperitifs is slowly catching on in the U.S., in Europe, especially Italy, France, and Spain, aperitifs have been at the center of late afternoon and evening drinking rituals for decades — and, in some cases, centuries.

In Italy, aperitifs are consumed during the pre-dinner aperitivo hour — a time when family and friends gather to enjoy low-ABV tipples along with small bites (cicchetti, in Italian) to unwind from the day. In France, they practice apéro (short for apéritif) with French tipples such as pastis and Pineau des Charentes. And in Spain, sherries and vermut (vermouth) whet the appetite during “el aperitivo,” with new vermuterias, or vermouth bars, experiencing a renaissance among millennial drinkers.

Although a culturally ingrained drinking occasion such as aperitivo hour has not yet gained a permanent foothold in the U.S., interest in low/no-ABV drinks is expanding. The segment grew by 30 percent in 2020, and became a nearly $10 billion industry in 2021. As a result, the Aperol spritz has become as ubiquitous as the vodka soda in most major cities around the country; new sober bars and bars that strictly serve low-ABV aperitif-style cocktails are popping up; and a new wave of aperitifs is flooding the market at an unprecedented pace.

To kickstart your personal aperitivo hour practice, I’ve scoured the world of aperitifs to put together a list of some of the hottest bottlings from both domestic and international producers, broken down by flavor characteristics. Whether you’re a hardcore spritzer looking for an alternative to Aperol, a G&T lover open to trying a low-ABV botanical spirit to replace the gin, or a bon vivant who is just looking for the next hot low-ABV product, there’s a must-try aperitif for everyone.

PM Spirits Oloroso Sherry 2021

PM Spirits is one of the most exciting U.S. importers and distributors of geeky spirits. The brand’s Project Sherries came to be after Nicolas Palazzi, owner of PM Spirits, and Eduardo Ojeda, co-owner of cult sherry bottlers Equipo Navazos and senior advisor to famed sherry producer Grupo Estévez, collaborated to release some of the finest sherries that Jerez has to offer.

The Oloroso sherry is aged for an average of 19 years, and is full-bodied and structured with notes of toasted hazelnuts, sesame seeds and walnuts, brown butter, leather, toffee, candied orange peel, and cinnamon. The flavor profile is balanced with a delicate acidity and salinity that makes it perfect for contemplative sipping. While it would also shine in a simple sherry cocktail such as a highball or Sherry Cobbler, at its price point, you’ll want to be sure your bartending skills are quite sharp.

Tximista Vermouth

As far as vermouths go, the Basque-produced Tximista is truly one of a kind. It’s the world’s first and only vermouth made with 100 percent Getariako Txakolina wine from sustainably farmed hondarrabi zuri grapes. The brand has two styles, rojo and blanco, both aromatized with local herbs, roots, and botanicals. The high-acid, mineral-driven Txakoli base makes these vermouths incredibly drinkable while also standing up beautifully in a vermouth and tonic or martini. The product made its debut in Spain in 2018, and it’s currently only available in New York, California, and Florida, with more states being added for distribution in the near future.

Wine & Spirits Magazine 90 Points, PM Spirits - Palo Cortado

90pts | PM Spirits

Jerez-Xérès-Sherry Palo Cortado Saca de Junio de 2021

Nicolas Palazzi and the team at PM Spirits worked with Eduardo Ojeda– chief winemaker at Valdespino and a co-owner of Equipo Navazos—to blend their own propriety brand of Sherries. This one is a selection from several criaderas, the wines an average age of 15 years. It still holds a brisk, salty memory of its time as a Fino, even as the flavors broaden out into saturated richness of barrel age. Serve it with bolitas de bacalao.

—J.G.   PM Spirits, Wilmington, DE

Sherry’s Indie Moment

A growing number of independent bottlers is aiming to showcase a more nuanced, variable side to fino, manzanilla and more.

There’s no single origin point for the modern sherry renaissance, but the aged cask of amontillado that Eduardo Ojeda and Jesús Barquín of Equipo Navazos bottled in December 2005 would be a solid place to start.

Like so many examples of its kind, the wine had been forgotten for decades in a dusty bodega, where it would have continued to slumber if not for the private club of investors, organized by Ojeda and Barquín, who pooled together the funds to rescue it from oblivion. Titled “La Bota de Amontillado” (after the Edgar Allen Poe story) and shared exclusively among club members, that initial release gave birth to a series of chronologically numbered editions. Hype quickly followed, and in April 2007 the project released its first commercial effort: La Bota de Palo Cortado No. 6.

It may come as a surprise that one of the driving forces behind the current sherry revival basically started off as a Kickstarter campaign. But according to Peter Liem, sherry expert and co-author (along with Barquín) of Sherry, Manzanilla & Montilla: A Guide to the Traditional Wines of Andalucía, few were interested in purchasing, let alone marketing, these wines. “The only reason that all these old wines still existed is that nobody wanted them,” he explains, citing the economic collapse and fall from relevance that decimated the sherry industry toward the end of the 20th century.

More than 100 “Botas” later (as of 2022, the library consists of 107), the project has redefined sherry for many U.S. drinkers. As Liem puts it, “They opened our eyes to the fact that something completely different existed in this region, which nobody was talking about.” That alone would have been enough to secure Equipo Navazos’ lasting place in the zeitgeist. But in recent years, their success has paved the way for a new set of independent bottlers who are following a similar playbook, sourcing minuscule quantities of wine from bodegas across the Sherry Triangle.

Some are Jerez natives, such as Antonio Barbadillo Mateos of the Sacristía AB project, and Ramiro Ibáñez and Willy Pérez, the duo behind the resurrected M. Antonio de la Riva label. Others, including Nicolas Palazzi of PM Spirits and Buelan Compañía de Sacas’ Nick Africano, operate out of the United States. They are united not only in their rejection of sherry as a standardized, industrial wine, but also in their desire to carve out a more intimate model for the region.

…

For Nicolas Palazzi, owner of rare spirits distributor PM Spirits, the collection of sherries he released late last year signaled a case study in sherry’s diversity. Since 2012, Palazzi has partnered with Equipo Navazos to bottle a series of highly-coveted single-cask Spanish brandy, whisky and rum under their Navazos Palazzi label. Even as someone who makes his living importing small-batch spirits, Palazzi was struck by the enormous variation between barrels in a single sherry solera system. “When you’re sampling different casks of spirits, a lot of the time you will find some small differences, but if it’s the same run, put in the same type of cask and aged in the same place for the same amount of time, the stuff you get is going to be pretty similar,” he explains. “But with sherry, it’s mind-bending. You can taste four different casks of the same exact wine and they’re all vastly different.”

“I saw a gap in the market for serious wines from this region, since everyone thought of manzanilla as something cheap, relatively young and accessible.”

In a typical bottling process, the solera would absorb and assimilate the individual profiles of these casks, rounding out their wayward edges into a smooth and seamless whole. At the scale that Palazzi describes, however, the goal is to capture the unique personality of a single barrel, or the distinctions that exist from one barrel to the next. “It sounds like a cliché, but these casks are living things,” Palazzi says.

New bottlers like Palazzi have arrived in Jerez at an inflection point. For all the recent talk of a renaissance, sherry remains a niche category. And while the cult model adopted by Equipo Navazos and its descendants has ushered in a new era of critical appreciation for the region’s finest wines, that’s not enough to sustain an entire wine industry. The question on everyone’s minds, then, is: What’s next?

INDIE SHERRIES TO TRY

PM Spirits Amontillado

“Selected with the expert help of Eduardo Ojeda,” as its label proudly declares, the PM Spirits amontillado drinks noticeably brighter and fresher than many examples of the genre, happily embracing its inner fino with a pronounced flor character. Although the packaging doesn’t mention where it was sourced, Palazzi notes that the wine came from several casks belonging to a prominent bodega with roots in the late 19th century. Light amber in the glass, it’s energetic and lively, especially for the style—as close to easy-drinking as amontillado gets.

Let’s Talk About “Smooth”

It may be the most ubiquitous descriptor in drinks. Is it also the most reviled?

The Bordeaux-bred, Brooklyn-based spirits importer Nicolas Palazzi traffics in stories—of the alchemists along the river Charente, whose Cognacs capture the essence of the surrounding vineyards and microbiota; of the artisans in northwestern France, whose Calvados express the nuance of dozens of cider apple varieties via a single bottle. Palazzi’s company, PM Spirits, identifies itself as a “provider of geeky spirits.” Part of the job, indeed, involves geeking out, luxuriating in the details and conveying them to potential buyers. It’s an arrangement that hinges on dialogue, governed by the imprecise linguistics of wine and spirits. Descriptors and analogs form bridges to connect one’s palate and sensibility to another’s. But all it takes is one word to dissolve the connection entirely.

“If their reaction is, ‘Oh, that’s smooth,’ it just tells me that I probably have not identified my customer as well as I thought I had,” Palazzi tells me. “I’m not upset at the person saying ‘smooth.’ I’m upset at the waste of life—it’s basically a sign that says ‘You just wasted your time.’”

Harsh words for a word that literally signifies the opposite. But language matters. The lingua franca of booze is inherently nebulous, and it requires calibration. A trained nose and palate can instantaneously identify a range of aromas and flavors and free-associate memories and feelings, which all become pinpoints tracing a constellation, giving shape to a ghost. The term “smooth” effectively erases any point of reference. Even as an adjective, “smooth” functions as a verb: It is the buffing out of character, the sanding down of the distinctions that make great spirits great. In the quest to triangulate the specific qualities of a spirit, “smooth” instead forms a binary of acceptability. It is a value judgment on whether or not one finds the spirit drinkable, one that can easily be impressed upon an unwitting consumer. This is exactly why the term is so ubiquitous in the marketplace, and—for decades, if not centuries—a red flag among connoisseurs.

Straight From the Barrel

“...Hommage a Yves & Jean-Noel Pelletan, the rare cask-strength Cognac, has a boldness that belies the softly nuanced quality its category is known for.”

Geeky Cocktails: Meet the Man Behind the Artisanal Spirits Movement

Geeky Cocktails: Meet the Man Behind the Artisanal Spirits Movement

When Nicolas Palazzi quit his day job as a chemical engineer in 2008, the spirits world got a little more interesting. The French native had moved to New York City to manage a medical research lab, but brought with him a curiously intense affinity for rare-cask Cognac. Dismayed by the lack of like-minded, handcrafted products on the market in the U.S.—where the spirits scene was still largely focused on big-name brands despite a booming, more intelligent cocktail culture—he set out to learn the business from the ground up. He officially launched his import company, PM Spirits, in early 2011 with just two independent Cognac producers (Paul Beau, Guillon-Painturaud) and six products. Now his book includes profound Spanish brandies, grappa from famed Sicilian avant-gardiste Frank Cornelissen, and Mexican Fernet (a bitter liqueur).

Palazzi is being lauded by beverage authorities nationwide as the go-to for distillates of character and terroir, and Palazzi’s unique bottles now line the shelves of restaurant and bar greats like The NoMad in New York City, Jack Rose Dining Saloon in Washington, D.C., and Scopa Italian Roots in Venice, California. Had an interesting digestif you’d never heard of before while out dining? That might have been made possible through Palazzi’s meticulous sourcing. He talks to Vogue.com about cocktails, “geeky” spirits, and the six bottles he’s most excited about now.

The tagline on your website is “provider of geeky spirits.” What does “geeky” mean in the spirits world?

When it comes to spirits in general, one doesn’t buy a product, one buys a brand. They buy the marketing and the status that the label conveys, but they don’t have a gauge on the true quality of the stuff inside the bottle, how it was made, who made it, and why it tastes the way it does. So by “geeky,” we mean the other stuff. It’s made by real people. It has an actual flavor profile that is specific to the place in which it’s made and the ingredients it’s made from. It’s not sweetened to death, artificially colored, or made to be as innocuous as it can be.

From that perspective, it seems to be as much about supporting the little guy as it is about supplying cool products.

It absolutely is. We want them to keep doing what they’re doing. When you start working with somebody, and they’re distilling out of a shack or their house is run-down, and you come back a year and a half later and see that they’ve made improvements. . . I’m not saying it’s 100 percent because of what we’ve done, but there is something rewarding about working with real people and the fact that the money spent buying these products can go toward their living and the creative process as opposed to feeding some giant company. I have nothing against big companies, but that makes it more meaningful to me. And the other result is that we’re educating people; we’re getting the authentic stuff to the people who will care about it. We’re showing them what these spirits used to taste like before mass marketing existed and can still taste like today.

What is a typical reaction of someone tasting spirits in your portfolio who is more used to tasting name-brand products?

People are not sure what to expect. A lot of people start out thinking that they’re doing us a favor by tasting these products that they’ve never heard of before, but they end up realizing that there’s a world of difference. I had one buyer who thought he didn’t like Cognac, then after one taste of the Paul Beau VS, he lit up. He was all, “Oh, wow, that’s really interesting,” and, “That’s a set of aromas and flavors I’ve never experienced before.”

There’s something extra that happens in the brain with the sensory experience of taste. When you taste something new and you love it, there’s an emotional connection that takes place. At that point, the person is not likely to forget it. They know you’re not fooling around and will want to see what else you have in your bag, even if it’s not something that will appeal to their particular clientele. They know you’re not wasting their time.

Would you say that the movement toward artisanal spirits is picking up speed, like what we saw happen to the craft-beer category?

It has definitely changed over the last six or seven years. Before, nobody cared, really. If you take bourbon as an example, you used to be able find anything you’d want and more on the shelves for a lot less money because people just didn’t know about it. And now certain bourbons are unavailable and allocated. Spirits are becoming cool. Drinkers have started paying more attention to what they’re drinking. I think that’s good news for everyone involved.

What is the coolest cocktail that you’ve encountered made with one of your spirits?

In Texas, I saw a sidecar made with a single-cask Cognac from a producer named Gourry [de Chadeville] that I brought in last year. This Cognac is distilled in a wood-fired pot still and is 64.3 percent alcohol, so that is a pretty kick-ass sidecar. You can’t drink too many of them! And at Cane & Table in New Orleans, they’re making a daiquiri with a rum I sourced in Spain from the sherry producer Equipo Navazos. It’s a bold daiquiri and is totally delicious.

What’s the latest addition to your portfolio that you’re most excited about? The thing that we don’t know about yet but will?

Calvados! I was lucky enough to be introduced to Eric Bordelet, the cider-maker in Normandy. It turns out the guy has been distilling for a number of years but never released anything. He’s doing single-cask full-proof unfiltered Calvados, distilling from both his cidre and his poiré (pear cider). Plus, his mentor was Didier Dagueneau, the famed Pouilly-Fumé winemaker, so everything is aged in ex-Silex casks from Dagueneau. It’s incredibly cool and will be available stateside in the beginning of 2016.

Intrigued? Here are six unique bottles Palazzi recommends adding to your bar (or gifting a very good friend):

Navazos-Palazzi Double Barreled Cask Strength Spanish Rum
A 100 percent molasses-based rum from the Antilles. Dark, meaty, with a nuttiness derived from the Oloroso sherry cask it ages in for more than ten years. Finishes bone dry. Only 1,500 bottles produced per year.

H. Beudin Single Cask 18 Year Calvados
Calvados with a kick, bottled at full proof. Gives a sense of what the pure stuff tastes like when sampled from a cask. Selected by star cider-maker Eric Bordelet.

Gourry de Chadeville Grande Champagne Cognac
One-man operation led by Pierre Goursat Gourry on nearly 25 acres of vineyards in Grande Champagne. A young, bold Cognac reminiscent of ripe apple and smoke, it spends seven years in an ex-first growth Sauternes cask.

Domaine d'Aurensan 1975 Single Cask Armagnac-Ténarèze
Like a vintage-dated Armagnac on steroids, with zero sugar, zero water, and zero coloring added. Distilled by the Rozès family. Mature flavors of dried prune, leather, and earth, with a seemingly endless finish.

Laurent Cazottes Poire Williams Eau-de-Vie
Distilled from organic pears dried to concentrate their flavor and then the pits, seeds, and stalks removed. Only 200 half-bottles of this Poire Williams come in to the U.S. each year.

Frank Cornelissen MunJebel Rosso Grappa
What happens when Sicily's most emblematic natural winemaker makes grappa. Distilled in a wood-fired vapor still from volcanic Mt. Etna’s indigenous Nerello Mascalese grapes.

What is Armagnac? Exploring Cognac’s Older Cousin

How Armagnac is Made

“Essentially, Cognac is more like Tequila, and Armagnac is more like mezcal in the way it’s produced,” says Nicolas Palazzi, owner of importer and distributor, PM Spirits, “but not in flavor [although it can occasionally share similar notes with the agave spirit].” Armagnac is a bit more artisanal in nature, and every producer creates a product to their own proof and style making it a fan favorite for spirit nerds.

Armagnac is allowed to use 10 grape varieties in production, but typically only use four: Ugni blanc, Baco, Folle Blanche, and Colombard; whereas in Cognac they use around 99% Ugni blanc. More variety in the raw material allows for Armagnac to express a diversity in flavor that Cognac cannot. When you also consider the terroir — the soil, climate, and hand of the maker — Armagnac truly distinguishes itself in character.

“There is something really interesting in picking grapes and making a product that has a true personality and seeing that product at a stage where it hasn’t become a very popular spirit [like Cognac] that has been modified to try to appeal to the general public,” says Palazzi. “Armagnac is very terroir-driven, it feels like you can connect with the history of the land and its rich history.”

In terms of distillation, 95% of Armagnac production is distilled with an alembic column still, whereas Cognac has to be pot-distilled, Palazzi notes. “Some are using pot still as well,” he says, although it’s a rarity.

After being distilled, the liquid is typically aged in 400-liter French oak casks — typically local, Gascony oak — and is then classified as VS, VSOP, Napoleón, or XO (Hors d’âge), depending on how long it has been aged for, with XO being the oldest age statement meaning the distillate has seen a minimum of 10 years in the cask. It’s also common for Armagnac producers to release vintages, like wine, but this will be more of a rarity as the category continues to rise in popularity.

After aging, the Armagnac is either bottled at cask strength, or proofed down. “The reason why Cognac is typically 40% ABV is to stretch out the amount they’re able to produce because of the demand,” Palazzi notes. “In Armagnac, you’ll find more full-proof bottling because they aren’t under the pressure of hitting numbers so they can focus on creating the best product possible [regardless of proof].” This means that each bottle will have its own distinct character, which isn’t always the case with other brandies.

Some producers to note are: Domaine Boignères, Château de Pellehaut, Domaine Espérance, Domaine d’Aurensan, but there are many others creating exceptional brandies as well in the region.

READ/LISTEN HERE

Cobrafire Eau-de-Vie de Raisin

An unaged blanche (white) Armagnac produced in the Bas Armagnac sub-appellation. It’s an undiluted, unadulterated expression of exactly what a French brandy should taste like. At 51.5% ABV, it’s also begging to make it into your next Martini.

PM Spirits VS Bas Armagnac Overproof

Importer PM Spirits teamed up with renown production house, Domaine Espérance, to release their own label of VS overproof (51.7% ABV) Armagnac. For the price you’ll pay, it’s an absolute steal and must-try.

How Craft Brands Can Succeed in the Covid-19 Era

Craft brands have been in the spotlight across wine, beer, and spirits in recent years, with products from small producers becoming increasingly sought after over mass-marketed products. Consumers are seeking out fresh discoveries, and are increasingly prioritizing the production methods, ingredients, and stories behind craft beverages.

But the onset of Covid-19 has presented a new challenge: While consumers are increasing their home consumption and retail alcohol sales are up, most craft wine and spirits brands have not benefited. As much of the on-premise sector remains shuttered and many consumers turn to e-commerce to limit in-store purchasing, there is no salesperson or sommelier to champion small brands or encourage the consumer to try something new.

ACQUIRING NEW RETAIL PLACEMENTS

While stay-home mandates and on-premise closures have resulted in retail sales spikes — as of June 13, off-premise sales were up 26 percent year-over-year for the entire Covid-affected time period — retailers are still working to manage this unexpected business shift.

“They’re still in survival mode,” says Nicolas Palazzi, the owner of PM Spirits in New York, an importer and distributor specializing in artisanal spirits brands. “They have no energy or time to do any outreach or take sales calls. They’re reacting to demand, and that demand is for mainstream brands because that’s what people know.” In the first six to eight weeks of the pandemic, most of Palazzi’s sales through existing retail accounts were for inexpensive items.