Microdistillery

A microdistillery is a small, often 'boutique', distillery established to produce beverage grade alcohol in relatively small quantities. While the term is most commonly used in the United States, micro-distilleries have been established in Europe for many years, either as small cognac distilleries supplying the larger cognac houses, or as distilleries of single malt whisky originally produced for the blended Scotch whisky market, but whose products are now sold as niche single malt brands. The more recent development of micro-distilleries can now also be seen in locations as diverse as London, Switzerland and South Africa.

Throughout much of the world, small distilleries operate throughout communities of various sizes, mostly without being given a special description. Due to the extended period of Prohibition in the United States, however, most small distilleries were forced out of business, leaving only the corporate-dominated megadistilleries to resume operation when Prohibition was repealed to produce small batch brands. Most microdistilleries in South Africa ceased to exist when legislation was introduced in 1964 that made it almost impossible for small, private distilleries to operate viably. The legislation was relaxed again in 2003 and although most distilling expertise was lost, it was recovered by a new generation of microdistillers and has grown since.

A recent trend in this segment of the distilling industry is for megadistillers to create their own micro-distillery within their current operation. Makers Mark, owned by Jim Beam Inc., and Buffalo Trace in Kentucky are now producing specialty bourbon brands with small stills. It is anticipated that other megadistilers, Bacardi, Brown Forman, Diageo, will soon join the parade.