Are Collectible Spirits the New Sports Cards?

Once upon a time, David Avedissian wasn’t much of a booze aficionado. He never sipped spirits at home and rarely ever drank whiskey. “I would maybe order vodka at a bar,” he said. That all changed on a vacation to Kentucky in 2004, when he and his partner toured one of the state’s legendary bourbon distilleries. 

“I drank bourbon for the first time on that trip,” he says. “I was like, ‘Woah.’ A light went off.” Avedissian started enjoying the popular, easy-to-find bourbons on the market, such as Maker’s Mark and Woodford Reserve.

Then one day, a friend told him to buy a special bottle of George T. Stagg, a limited-release bourbon named for a 19th-century whiskey pioneer. Even though it seemed pricey (around $50 at the time) he loved the taste. He ended up buying more bottles of George T. Stagg than he could open and drink. 

Collectors like Avedissian, who started buying their bourbons in the aughts and early 2010s, have seen astronomical growth in value. 

“I’ve never spent more than $200 on a bottle of whiskey,” he says. “Ever.”

That growth has happened because the sort of dude who once spent his coin on Bordeaux and Burgundy wines now desperately wants to become a Whiskey Bro. In many ways, spirits are a better investment than wine. Whiskey (or brandy or rum) has a much longer shelf life than wine—once a wine is open it must be consumed within a few days. 

But bourbon prices have recently entered the stratosphere. So much so that a shadowy secondary market of flippers has emerged, with people selling coveted bottles for thousands of dollars.

“Bourbon is not just something you can consume. It’s a lifestyle. It’s a form of entertainment,” says Fred Minnick, author and bourbon expert. 

Still, celebrity aside, the bourbon collector market is largely driven by a connected network of whiskey geeks—the Sneakerheads of the booze universe. In fact, collecting special whiskies is similar to collecting special edition sneakers. With bourbon, there’s always a new single-barrel offering, a special distillers selection, a rare vintage, or a limited edition label. 

And just like in other collectibles markets, there is the manufacture of “collectibility.” Unlike in wine, where ratings on the 100-point scale by wine critics drive demand for top wines from Bordeaux or Barolo, the bourbon market is not moved by ratings and reviews in the same way. Avedissian says there have been numerous cases where limited-edition whiskeys have received terrible ratings from critics, but it didn’t matter. 

“Scarcity matters,” he says, adding: “The demand and scarcity sometimes feels artificial.”

This scarcity is often created at the local level. Shops and bars around the country often make one-of-a-kind barrel selections. But now, private whiskey clubs, with a few dozen members, will combine buying power to select special barrels direct from distillers. Those barrels become a special limited run of a couple hundred bottles for club members, with some of the excess allocation going to a local retailer. 

The real scarcity in bourbon derives from acquiring whiskeys from distilleries that no longer exist. For instance, specific bourbons made at Kentucky’s Stitzel-Weller distillery, which closed in 1992, are highly sought after. Stitzel-Weller is the distillery founded by the actual, nonfictional Julian “Pappy” Van Winkle.

That type of scarcity can’t last forever. Some collectors are thinking about what’s next. Minnick suggests that Armagnac, the brandy made in the French region of Gascony, might be the next big thing. 

“In 10 years, Armagnac will be the buy of a lot of people who are bourbon drinkers,” Minnick says. “If I’m a collector, an investor, I’m chasing that. Someone who comes in and buys Armagnac would be like buying Pappy in 2004.” 

That may be true, since Armagnac’s taste profile may appeal to the bourbon drinker. 

“There’s more Armagnac being sold, but it’s a very specific kind of Armagnac sold to a specific kind of buyer,” says Nicolas Palazzi of PM Spirits, who is a top importer of Armagnac. “We’re talking about Armagnac that’s very extracted, heavier on the wood, more powerful, more vanilla. So, it’s not very different than the whiskey that people are drinking.” 

Right now, you can buy plenty of Armagnacs with 50 years of aging for less than $500 a bottle.

Michael Buffa, of the 200-member Orlando Whiskey Society, is one of these converts from whiskey to brandy. Buffa started a side group in central Florida with about a dozen people, called the Yak Pack, when his taste for Armagnac began to usurp his taste for whiskey. 

“Armagnac has way more to offer than bourbon, personally,” he says. “In the secondary markets, what bourbon is selling for is absolutely ridiculous. Bourbon drinkers are very susceptible to trends.” The Yak Pack has already selected several brandy barrels. “The idea is to start creating buying power in brandy,” he says.

While the Yak Pack quickly gains experience and more exposure to brandy, Buffa notes this knowledge is rare. Whiskey brands have so many more reps out in the field doing so-called “education marketing.” 

“Armagnac drinking for Americans is in its infancy,” Buffa says. “There really aren’t a lot of brandy experts.”

Give Your Cocktail a Little Je Ne Sais Quoi

An unequivocal translator of time and place, eaux de vie—or unaged fruit brandies—have added a missing I don’t know what to the modern drink.

For the average person, nosing a glass of, say, whiskey, might conjure tasting notes along the lines of “oaky,” “fruity,” or at the most basic, “This is whiskey.” But hand them a glass of eau de vie, or unaged fruit brandy, and even the most novice drinker might say, “Ooh, this smells just like raspberry.” Indeed, the beauty of eau de vie is its clarity of flavor. And thanks to a growing number of top-rate producers who understand the spirit’s potential, and an equally enthusiastic cohort of bartenders who appreciate its strong sense of place, eau de vie has finally found a welcome home on the modern backbar. 

Eau de vie—French for “water of life”—is by no means novel. Born and bred in Europe, particularly France, Southern Germany, Austria and Northern Italy, this category of delicate fruit-driven spirit has existed for centuries. Historically, it was considered a peasant spirit, made from the scraps of fruits. Now, eau de vie’s focused flavor has made it a standout option for bartenders seeking unequivocally terroir-driven ingredients to add complexity to any number of cocktails. 

Even before craft whiskey brands began exploring the potential for grain to embody flavor characteristics from a specific plot of land or soil type, eau de vie had already put its stake in the ground as a spirit that is first and foremost an agricultural product. “When enthusiasts go to a whisky distillery, there is a lot of emphasis put on fermentation, the still distillation process, the temperature, the number of plates the still has and so on,” explains Nicolas Palazzi, founder of the Brooklyn-based importing company PM Spirits, which brings stateside such renowned eau de vie producers as Rochelt and Cazottes, and starting in early 2022, Capreolus Distillery. “Eau de vie producers don’t care as much about distillation as other categories do; they care about the field, the vines, the orchard, the fruits,” Palazzi adds. “There is a relation to the land that is not necessarily present with producers who either distill grains or fruits for the purpose of aging the distillate.”

In this way, eau de vie producers share much in common with contemporary winemakers. No matter the raw material—be it apple (pomme), quince (coing), raspberry (framboise) or plum (mirabelle)—distillers are looking for fruits of the highest quality, which are grown in ideal conditions and harvested at the peak of their flavor. Like wine, variations in flavor can be tasted in each vintage, or even between parcels of land within the same vintage. 

“At one time, I would have said that terroir in spirits is impossible because the distillation process would strip anything from the initial source,” says Ben Robinson, sommelier at Moor Hall, a restaurant with two Michelin stars in Lancashire, England. “However, over the last few years, I would have to say that there could be a sense of terroir in eaux de vie.” 

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.

The 16 Best New Spirit Releases Currently on the Market

Cognac Hommage a Yves & Jean-Noel Pelletan 

This limited-edition, single-cask cognac (along with a few demijohns) consists of a blend of eaux de vie that was distilled between 1925 and 1965, so this is truly a taste of cognac history. Just 870 bottles were released this past October, and it was named after a father and son cooperage team who hold the title of Maitres Artisans Tonneliers and are important figures in the cognac category. This is truly a legendary spirit that will not reappear.

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.”

How Cocktails Are Helping Armagnac Reinvent Its Image For A New Generation

La Boutique Des Vins in Toulouse’s historic Carmes neighborhood is one of the more popular spots for local residents to browse for just the right wine or spirit, maybe even a craft beer. On a quiet Friday evening when store traffic was still sparse, Noémie Cassou-Lalanne arrived in the hopes of convincing customers to reconsider a traditional spirit that might only rarely be on their shopping list.

Surrounded by a nook of shelves filled with wine bottles, teas, and chocolate bars, Cassou-Lalanne set up a small table and a silver tray with three bottles of Armagnac from the Pellehaut domaine in the Gascony region where she’s in charge of marketing. She then improvised a small bartending station, complete with cutting board, mint leaves, a pestle, tiny umbrellas, ice cubs, and simple syrup to make Armagnac Mojitos.This reimagined cocktail used two types of Armagnac that this artisanal industry hopes will revitalize the image of France’s oldest eau de vie. The first, L’Age de Glace Château de Pellehaut, is a light-brown blend of Armagnacs that have spent little time aging a barrel. The other is Blanche Armagnac, a clear white spirit that has not been aged.

Queen Snake - Shannon Tebay, Death & Co.

INGREDIENTS

Serving: 1

• 1 1/2 ounces blanche de armagnac, preferably Cobra Fire Eau de Vie de Raisin

• 1/2 ounce Clear Creek Douglas Fir Eau de Vie

• 2 teaspoons lychee liqueur, preferably Giffard Lichi Li Lychee Liqueur

• 1 teaspoon crème de cacao, preferably Marie Brizard

• 1 lime shoulder

DIRECTIONS

1. Express lime, leave in bottom of a Sazerac glass.

2. Combine all ingredients and stir to integrate.

3. Top with cracked ice.
   
   

Claire de Montesquiou plunged into Armagnac 30 years ago with her husband after living in England. They bought Domaine D’Espérance and began to restore its vineyards. They believed the clay soil on the far western part of the official Armagnac region would yield high-quality grapes. Three decades later, they’ve developed a strong international reputation while also staying small. “I make small quantities of high quality,” she said. “It’s like if you wanted to compare haute couture to ready-to-wear.”

She’s also brought a willingness to experiment. Several years ago, she connected with Nicolas Palazzi, a Bordeaux native who had moved to New York City where he worked as an importer and brand ambassador. Palazzi was passionate about Armagnac, but he felt it was too complicated to explain to bartenders and potential customers. “The fact that it’s called Blanche Armagnac makes it really hard to sell in my world,” he said.

Cobrafire, eau-de-vie raisin

He worked with de Montesquiou to create a product called Cobrafire. Rather than sitting in a still container for 3 months and having water added, the Armagnac is distilled at a lower alcohol rate, bottled after one month, and then sold as an “eau-de-vie raisin.” 

“I’m a big proponent of putting stuff in a bottle at its natural proof,” Palazzi said. “If you try it and you like it, and then you need to add water to it, then you can do it. But it’s not someone in a lab deciding for you.”

It’s a sharp break with tradition. But Palazzi said Armagnac makers need to take some chances if their product is going to reach a wider audience.

“What we’re trying to do with Cobrafire is to reframe things so that people are interested,” Palazzi said. “We’re trying to sell something really good. I want to let people discover the work of distillers who really care about their stuff.”

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.

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.

L'ENCANTADA XO ARMAGNAC

L'ENCANTADA XO ARMAGNAC  - a collaboration between PM Spirits and armagnac cask hunters L’Encantada, this blended spirit is one of the most complex brandies in the world. The release is comprised of four different casks curated by L’Encantada with vintages ranging between 1987 - 1997. Each one was produced by distillers who create in the heart of their fields with a mobile alambic armagnacais still before the spirit matures in oak in Gascony. Only 1,600 bottles are available at a cask strength of 46.8% Abv.