Virginia ABC shakes up system for buying rare spirits
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Prized Pappy. Photo: Marvin Joseph/The Washington Post via Getty Images
Virginia ABC just changed the way it sells many of its rare spirits, ceasing its notification system in favor of randomized in-store stocking to even the playing field.
Why it matters: People were going to extreme lengths to snag sought-after spirits under the old system, including camping outside of liquor stores overnight and even committing felonies. Two former ABC employees were convicted for selling insider information.
The big picture: Virginia is one of 17 "control states," which means state-run stores are the only place one can buy liquor in person.
- While everyday spirits like Tito's tend to be priced slightly higher, limited-edition bottles like Pappy Van Winkle are offered at the manufacturer's sales price — often hundreds or thousands of dollars less than you can find on the open market.
- A 15-year-old bottle of Pappy Family Reserve may cost a Virginian $169.99 at the state liquor store, far less than nearly $2,500 from a Sotheby's auction.
- That big gap makes these spirits attractive for imbibers and collectors, and also anyone eager to make big bucks on the resale market.
Zoom in: Virginia ABC has been trying for nearly a decade to find an equitable system for distributing its rare bottles.
- It launched a lottery for uber-trendy Pappy in 2016. Two years ago, ABC started a "drop" and notify system for other rare spirits, which pinged a mailing list of subscribers when bottles arrived. Virginia tweaked that system multiple times amid complaints that it was unfair.
- The notification system encouraged overnight campers, who hold an unfair advantage over people who can't dedicate eight hours to sleeping in a strip mall.
The latest: ABC will now stock store shelves with spirits at "random dates and times" and without notifications.
- Store sales volume will determine which stores get the products and how much; the stock will not be listed on ABC's website in advance to try to keep down the crowds.
- A one-bottle limit of the rare stuff is still in effect.
Between the lines: Whiskey guru Bill Thomas, who's amassed one of the largest U.S. collections at his Adams Morgan bar Jack Rose, tells Axios that the new ABC system will encourage more whiskey hunters — a pastime that helped build his collection.
- "It's better for the consumer, who can stumble across a good bottle, and it's better for the state," says Thomas. "It makes Virginia a place to drop into liquor stores, and adds that layer of fun that maybe you'll find an iconic bottle."
The intrigue: Popular Pappy and other select bottles will continue to be sold under Virginia's lottery system, according to ABC. But Thomas says that Pappy isn't what most real-deal hunters are scouting for these days, even though he carries Pappys at his own store, Premier Drams.
- What's getting whiskey nerds excited, according to Thomas, are one-offs, single barrels, and small batches from independent bottlers like Old Carter, Rare Character, Kentucky Senator, High West, and Pursuit Spirits — labels you might now come across at ABC.
- "It's fun to hunt because you can find the next iconic bottling versus an established iconic brand," says Thomas.
- If you're just getting into hunting, Thomas recommends whiskey podcasts like Bourbon Pursuit or reviews from Bourb Your Enthusiasm.
What's next: ABC's next lottery drops on Monday. It includes a batch of spirits (not all rare), signed and/or made by celebrities.
- Think Heaven's Door Redbreast Whiskey signed by Bob Dylan, and Whipshots Vanilla — the Pappy of alcoholic whipped cream — signed by Cardi B.