Is Barrell the star that burns brightest before it dies?
Before I get into this story, I’m going to start with a few things. I’m not a journalist, I’m a blogger. I try to get things right because I know that there are real world consequences for people that work in places when rumors are spread. I’m also a huge fan of Barrell. I take zero joy in sharing what I’ve heard and learned (and confirmed with several sources). There are people behind companies that may or may not be failing that will have their lives upended if they are purchased, closed, or laid off and that’s sadder than losing a beloved bottle of whiskey. I’m sharing this article with what I believe to be true because it’s important, and most spaces aren’t diving into this the way I would expect them to.
Let’s start with the rumors that started early 4th Quarter last year. Pulling out of existing marketing contracts with very little notice. Cash crunch. Sales down. Bills overdue. Stellum instagram not updated since October 2023. These were lightly shared on the socials, with no real traction from any of the whiskey media. Some of us (me included) thought this meant that Barrell was finally going to be acquired in fact I wrote about it 8 months ago even before the rumors. This was purely speculative on my part.
One of the best Amburana finishes yet. Also, their Willett sourced single barrels were really great, especially for the price.
Someone noticed a lot of Barrell sales people posting on LinkedIn that they were looking for new opportunities. A company that’s strapped for cash or is trying to be more attractive to buyers lays off employees, so speculation ramped up. How does a company survive without a sales team? They don’t, or they contract (which costs far less than having your own!) which they recently did.. Some of the sales people had told accounts that sales were down 50% (the day before they were laid off talk about timing).
The media mostly yawned, and it was shared mostly amongst concerned fans on the socials. Then something big happened that got the attention of everyone. A real estate listing was found that was a turn key opportunity for one of Barrell’s facilities. It even had pictures showing the Barrell logo on the storage tanks! There was also an embarrassing typo in the listing talking about the barrel facility with an extra L on it. I mean come on here…. The listing was shared on the socials and then this happened….
This YouTube video changed the conversation, even Fred Minnick would come to reference it on a Bourbon Pursuit round table.
The social storm took off with that video, I recommend the watch, and it’s well thought out and fair. The whiskey media couldn’t just tut-tut and move on, in fact some pretty major voices addressed it and tried to shut it all down.
“This isn’t true, they’re doing great.”
Less than a week after the video posted Barrell’s had a booth at The New Orleans Bourbon Festival. With master blender Nic stationed at the booth, approaching them for a sip and interacting was akin to whistling past the graveyard. There was strange energy around it, as many attendees were talking amongst ourselves about how it felt like a funeral. They were so nice, but what was unspoken was uncomfortable. It was on everyone minds.
A few days ago Bourbon Pursuit Round Table #92 which is subtitled “What’s going to happen to NDP’s?” spends 55 minutes not talking about it at all after they announce early on that they’re going to talk about Barrell, and Fred has a statement from Joe that he wants to read.
I have a great deal to say about this, so buckle up. Fred read a statement after dancing around it for fifty-five dull minutes. Just fast forward past his long winded rehashed boring take on 3 tier system where he kisses both sides of ass. Start at 55 minutes. Fred looks uncomfortable from jump, and then confidently reads Joe’s statement VERBATIM. This statement was texted to him from Joe.
“There has been speculation about both our properties and our sales team. First we haven’t sold any properties, if that changes we’ll let you know. Second there has been some speculation about us letting our sales team go, as of March 1st we enlisted 2020 Beverages for sales and marketing trade supp0rt. They are an extension of BCS (Barrell Craft Spirits) and will provide feet on the street sales teams across the country giving us a wider footprint. We’re very optimistic about the future given some positive brand indicators in recent months. There’s also been a lot of excitement around the launch of Barrell Foundation and Barrell Craft Spirits brand moving into the United Kingdom earlier this month. Not to mention some upcoming new product launches in the United States.”
Some legends from Barrell that are irreplaceable in my opinion.
I want to touch on how Fred read this, UNCHECKED on a major whiskey podcast episode. Fred acknowledges his friendship to Joe, which we all know about and understand. The sponsorship of the podcast over the years was also acknowledged. We all see how this is a difficult situation for them but to just read that statement, without any follow up questions is astonishing.
Fred really showed his belly to Joe here. The statement didn’t answer anything. “No we haven’t sold any facilities” (true but are you trying?)
If Fred asked Joe questions, he didn’t disclose this. Fred struggled answering Brian’s (Sippin’ Corn) question about the listing. He talked about how he was friends with J0e and the awards Barrell has won, and price points and how marzipan came about because of Barrell. This razzle-dazzle wasn’t a good look for the whiskey media. You simply have got to ask tough questions especially of your friends.
There was a distinct pivot to talking about how great the whiskey is, everyone should have Foundation on their shelf etc… and it was uncomfortable to watch.
There was a lot of ring kissing for Joe who may in fact be a great guy but this is utterly IRRELEVANT, especially to employees who were let go, and their families. It was peculiar watching Fred trip over his words trying to explain the statement.
Some things I’d want to ask Joe if given the opportunity, even if he was my friend and neighbor!
You added 2020 Beverages as contracted sales team (feet on the street) and let go of your employees. How difficult was that decision to make and why did you go this route?
I’d like to ask about direct barrel sales to whiskey clubs, peer to peer, and brokers that is taking place right now.
Let’s talk about the financials… there are credible sources claiming that some bills have been in arrears for 2 years.
Why did you take down the real estate listings once the word got out?
What about the whiskey market is so difficult right now for Barrell specifically?
You’re optimistic about the future, this felt like a press release to talk about UK launch and new coming products. Fine, what about Stellum where we have all by now seen the contracts offering glass/corks for sale? Was that brand extension a very costly learning experience? Can the market handle even MORE Barrell SKU?
One important tenet of journalism is not to read a press release without asking questions. I realize a podcast isn’t required to do this, but Fred has earned a broader responsibility to ask these questions on behalf of all whiskey fans.
He audibly farted in an elevator here.
Ironically, Kenny had the best take of the night with his “buckle down make sure you’re spending your money in the right ways, making sure that you’re not over-leveraged or spending money frivolously” It was a throwaway take at the end but it was the most honest thing said in the whole episode. I wish that had been discussed because they probably KNOW more than they shared.
These ryes were discontinued last year, much to my chagrin.
I feel like Spielberg right now, not knowing how to end this story. I probably can’t end it because we don’t know the outcome. This wasn’t intended to be a dissection of Fred or Bourbon Pursuit, but since we don’t have a whiskey media, they are the most prominent of what we do have and they abdicated the throne.
I am left with the sad feeling that Barrell could disappear, or become a shell of itself. I hope this isn’t the case. I hope it’s just another challenge for them to overcome, and they likely will have to overcome it alone, because I think the gravy train of acquisition is over considering the market we are in. I love their whiskey, even if it’s not an easy brand to understand initially, it has been worth the exploration.
Thank you for your time reading, and thank you for the hot tips coming in via DM. Feel free to leave your comments if you have some.
- Mickey Pinstripe