Whiskey Lull

Before Prohibition, for somewhat similar reasons, both distilleries and schoolhouses closed down in summer. Most whiskey, like most learning, was produced in winter, left to mellow through the hot weather.* Distillers counted whiskey's maturity in summers because they thought that season gave whiskey its best bouquet. Last week this old-time cycle came back into the liquor business for the first time since Repeal. National Distillers, No. 1 U. S. whiskey producer, announced that seven of its nine distilleries had been shut down until October. With heated warehouses, National's decision had nothing to do with summer's effect on whiskey's flavor. Reason given was that National plants, after running continuously since Repeal, needed overhauling and replacements. Plain fact was that National, like the rest of the industry, feared overproduction.

In the liquor business, overproduction really means not just overproduction but more overproduction than seems advisable. From Repeal to June 30, 1934, total U. S. production of whiskey was 62,352,666 proof gal. while only 18,875,964 gal. were consumed. In the fiscal year ending June 30, 1935, production was 149,112,923 gal., consumption 50,780,940 gal. In the six months ending December 31, 1935, production was 96,363,859, consumption 36,242,929. Any other industry which deliberately produced three times as much as it sold--and went on doing it for two and a half years--would be a business madhouse. But after Repeal the new generation of liquor makers had to build up stocks where no stocks existed. While battling for the market with cheap whiskies and blends, they stored away much of their output for aging, kept their eyes on the day--around 1939--when they would have enough good bonded whiskey saved up to offer at low prices. Entering the field at Repeal with more than half the liquor then available in the U. S., National Distillers kept a long lead in whiskey stocks, had 43,000,000 gal. of whiskey aging in its warehouses last Jan. 1. In volume of business, however, National's lead has been taken away by aggressive Schenley Distillers whose 1935 sales were $63,000,000 compared to National's $52,600,000.

Among liquor men the conviction has lately grown that whiskey's necessary overproduction has reached its limit. With an all-time record output of 22,000,000 gal. in May, U. S. whiskey stocks for the first time mounted above the pre-Prohibition peak to a total of 281,208,000 gal. At the same time, withdrawals of whiskey for consumption declined 5,390,000 gal. in April to 4,760,000 gal. in May. At this rate, total whiskey reserves at the end of 1936 might be as high as 380,000,000 gal.

* Whiskey sales, as well as production, have always slumped in the hot months, gin sales traditionally rising. To improve whiskey's standing as a summer drink, Calvert Distilling Co. last winter dispatched an expedition to the Amazon ("Green Hell of Guiana" for advertising purposes), equipped with "dermatherms" and plenty of Calvert whiskey. After sitting around in the jungle drinking Calvert for six weeks the expedition returned with figures showing that skin temperatures were 1/2DEG to 1DEG lower after "ingestion" of the whiskey.

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