Few states are as influential in the world of American spirits as Kentucky. The hub of Bourbon production for the country, Kentucky’s history is, quite literally, shaped by its native spirit. Whiskey has been made in Kentucky for centuries and today Bourbon is an estimated $9 billion industry in the Bluegrass State, fueling thousands of jobs and millions in tax revenue, and creating an entire tourism industry that attracts droves of people annually to Kentucky’s distilleries, Bourbon bars, and retail stores. It’s no surprise then, that Kentucky embraces its Bourbon heritage and nurtures all facets of the industry. 

In that vein, state legislators passed the Kentucky Vintage Spirits Law in late 2017 to take effect in January 2018. The edict allows authorized retailers—both on- and off-premise— who are licensed to sell distilled spirits to purchase “vintage distilled spirits” from unlicensed persons for resale to consumers. Put simply: Bars and liquor store owners can purchase vintage spirits from private individuals without going through a distributor or wholesaler, and can resell them to the public. The law has been widely embraced in Kentucky by the whiskey geeks who hunt for rare Bourbons for sport, but it’s also caused confusion for many people who question its legality and, several years later, its enforcement by the state’s Alcoholic Beverage Control Board (ABC). 

The definition of “vintage” causes much of the uncertainty. When the law was passed, most people assumed it was meant for decades old spirits that have been hiding in grandpa’s basement and passed down through generations, so called “dusties” that have been out of public circulation for many, many years. But over time, that definition has morphed into something vastly different and added major fuel to the rare whiskey movement. Taken from Kentucky’s legal filing, “vintage” simply means a spirit in its original manufacturer’s unopened package that is not owned by a distillery and not otherwise available for purchase from a licensed wholesaler in the Commonwealth of Kentucky. In laymen’s terms, this means recently released small-batch whiskeys and rare bottlings that sell out before ever making it to store shelves constitute “vintage” and can be bought and sold under the Vintage Spirits Law. 

“There’s an issue around clarity and interpretation,” says Kentucky lawyer Shannon C. Smith. “The question of ‘what is vintage’ and what is considered ‘available through a wholesaler’ is where I’ve seen most issues arise. There’s a disconnect between those who wrote the law, those enforcing it, and those trying to comply with it.”

Though she’s a practicing lawyer in Kentucky, Smith also co-owns the specialty Bourbon bar and retail store Revival Vintage Spirits & Bottle Shop in Covington, Kentucky, a venue she cofounded in 2020 with her business partner, Brad Bonds. Smith is a Bourbon guru herself, as is Bonds, and Revival has shaped its entire business around the Vintage Spirits Law. Being a legal expert and a Bourbon fan has been key to the success of the venue. “Unless you’re an alcohol beverage lawyer, navigating this law can be tricky,” Smith says. But she adds that the law has been great for Bourbon tourism and created a new avenue for revenue in the state. “The law has made this region an incredibly unique destination. It’s hugely positive. There’s nowhere else in the world where you can access these rare spirits.”

Legal Intricacies 

In the few years since its passing, the Kentucky Vintage Spirits Law has been both celebrated and criticized. Its fans—primarily on- and off-premise operators and whiskey geeks—delight in their ability to buy spirits otherwise unavailable to the public. But its detractors—most notably the distillers and suppliers who produce and own the biggest specialty and rare, so-called vintage, brands—say it’s created a barely legal whiskey market that makes a killing off products obtained and re-sold through questionable means. 

The process in action looks a lot like this: An individual who owns a “vintage” whiskey brings it to a bar or retail store. If that person has a set price in mind for its value, he or she can start the sales process with that number. Most venues that participate in the selling of these products have a whiskey expert on hand who evaluates what’s brought in, and of course both parties can haggle on price. Once they agree on a sales figure, the on- or off-premise operator pays the person for their whiskey, puts a sticker on the bottle that clearly identifies it as a vintage spirit, and notifies the state ABC of the sale. From that point, the bottle can be re-sold by the retailer; there is no state agency authenticating the product.

Bars and retail stores have to make their own “vintage spirit” stickers and put them on the bottles they acquire under the law. Smith says most of the stores cited for improperly selling vintage spirits either didn’t place their stickers on the products or didn’t report the sales in a timely manner. The most notable case related to vintage spirits infractions centers around Justins’ House of Bourbon, which has locations in Louisville and Lexington, Kentucky. Justins has been in the news for many months following an investigation into its selling of vintage spirits. Investigators from the Kentucky ABC, as well as the federal Alcohol Beverage Regulation Administration and the Alcohol and Tobacco Tax and Trade Bureau, are involved in the inquiry. 

Initially, state and federal agencies reportedly confiscated hundreds of bottles of Blanton’s and Weller Bourbons from both Justins’ retail stores and the company’s warehouse in Washington, D.C. According to legal filings and local news reports, there were allegations that those bottles were counterfeit and that they were improperly transported and warehoused. Local news outlets say that Justins’ failed to report in a timely manner the purchase of the vintage spirits in question, didn’t apply the proper vintage spirits stickers, bought more than the permitted 24 bottles from one individual, and transported the goods illegally between their two stores and the warehouse. Those claims were settled in Washington, D.C., where Justins’ had to pay two $1,500 fines: one for failure to maintain its books and records on-site in D.C. (they were kept in Kentucky, according to reports), and the other for failing to produce requested documents for the investigation within 48 hours. In return, charges were dismissed for the misuse of a storage facility and for illegally transporting alcoholic beverages in the nation’s capital. While legal proceedings remain underway in Kentucky, both Justins’ stores have been open and operating normally all year. Justins’ House of Bourbon co-owner Justin Thompson describes Kentucky’s Vintage Spirits Law as hospitality focused but notes that the Commonwealth of Kentucky places a lot of restrictions on both on- and off-premise operators. “The Vintage Spirits Law was intended to make Kentucky the ultimate Bourbon destination,” he adds. 

When retail outlets are cited for an infraction against the Vintage Spirits Law, they typically have to pay a fine and fix the issue—by putting the vintage spirits stickers on the bottles and/or properly reporting their purchase to the state. Failure to pay the fine, the amount of which is determined by the state, can result in a suspension of their retail license. In some cases, the state can confiscate and destroy spirits products it believes to be falsely acquired or in violation of the law.

Additional Confusion

The Vintage Spirits Law states that private individuals can sell a maximum of 24 vintage spirits bottles in any 12-month period, which Smith says is limiting, as some people inherit very large collections of old Bourbons. A lot of the controversy currently surrounding the law has to do with Buffalo Trace products, specifically the brand’s Antique Collection, according to Smith, who adds that such modern-day products also add to the confusion around the word vintage.

“Only some stores get the Buffalo Trace Antique Collection and if you want a specific year, 2016 for example, you can’t get it from any distributor anywhere, no matter if you’re a store or not,” Smith explains. She adds that the same is true for the Old Weller Antique from 2020 and for several limited, one-time release products from craft distilleries. “You can’t get them, and that’s the biggest inconsistency,” she notes. “Can we get it and claim it under the Vintage Spirits Law? That’s the nuances being navigated.” 

Beyond how old a whiskey is, the definition of “vintage” is causing confusion in other ways too. Smith points out that there have been a few cases of stores cited for selling private barrel picks that weren’t theirs. For example, some retailers buy a full barrel of Bourbon directly from a distillery, and that store is the only retailer in the world with that exclusive and special bottling. But consumers then buy a few bottles at the original store and re-sell it to a different venue under the Vintage Spirits Law, thinking that it qualifies because the spirit is not available from any wholesaler in the state. In more than one case, Kentucky’s ABC has confiscated the products from the secondary shop and issued a citation, causing further confusion and misinterpretation of the Vintage Spirits Law. Smith says that she has spoken to state legislators about needed change to the law and hopes for clarity to come soon. 

Along with a better definition of the word “vintage” and a loosening of the number of bottles an individual can sell in a year, Smith adds that having the opportunity to legally ship bottles bought under Vintage Spirits would also be beneficial. As it stands now, products purchased through the Vintage Spirits Law in Kentucky can only be sold legally in Kentucky, though Smith says she’s aware that private buyers are coming to Kentucky to purchase special whiskeys and then selling them on the secondary market nationwide. She estimates that some private re-sellers make anywhere from a few thousand to upwards of a million dollars on the law outside of the Bluegrass State.

“When we talk about the economic boon of this law, I think it would be hugely amplified if we had an opportunity to ship these products, it would allow us a greater reach and much greater sales,” Smith says. “That, and the ability to purchase more than 24 bottles from an individual consumer. We’ve run into folks who’ve inherited a huge collection and want to sell all of it at one time, and we cannot buy more than 24 from them per year, but some of these folks have hundreds of bottles.”

The law also presents some confusion for whiskey consumers, though Smith says that’s a minor part of the problem. “The average consumer understands that it presents an opportunity to purchase older products that are available nowhere else in the world,” she explains. “At the end of the day, it’s an economic boon across the Commonwealth to have this legal vehicle to pull these old bottles back into the market.”

Indeed, Smith says her venue Revival is thriving thanks to the Vintage Spirits Law. The bar and bottle shop launched in 2020 in a 675-square-foot space and has since moved to a new location roughly ten times larger. Smith says nearly all of the products sold at Revival are acquired through the Vintage Spirits Law, and she says the most fun part of running the business is meeting with people who have great stories to tell about their dusties. Her business partner Bonds agrees. “I’m having an absolute blast bringing these rare, dusty bottles back,” he says. “It’s so much fun to share history for a fair price. We’re making the inaccessible accessible and I couldn’t be more excited for the future.”

What’s Old Is New

Most of the businesses that actively partake in sales under the Vintage Spirits Law are boutique concepts. Larger chains like Liquor Barn, which has more than 20 retail outlets in Kentucky, say the law is not a big factor. Jonathan S. Blue, the advisor for retail and beverage alcohol at Liquor Barn owner Gopuff, says there’s been almost no noticeable impact at Liquor Barn stores and adds that very few large-scale retailers have delved into selling vintage spirits. He describes it as more of an on-premise phenomenon, though he notes that Liquor Barn did purchase several customized bottles of Pappy Van Winkle thanks to the law. “The bottles are very unique in appearance and have been a nice addition to our collection,” Blue says.

He notes that the law requires meticulous record-keeping and agrees that the state needs to continue to clarify some of the language used, especially with regard to the definition of vintage. “It definitely has more of a positive impact for restaurants and bars,” Blue explains. “Though another direct benefit has been the increased tourism to Kentucky due to the ability for patrons to sample and taste vintage spirits that would otherwise be unavailable.”

Average consumers who get to taste rare whiskeys thanks to the Vintage Spirits Law are often enthralled with the legislation. Owen Powell, the founder of Neat Bourbon Bar & Bottle Shop in Louisville, Kentucky, says guests frequently ask how his venue is able to get certain products, and he uses the opportunity to educate consumers not only about whiskey but also about Kentucky’s unique law. “A huge percentage of our customers are in Kentucky for the Bourbon Trail,” Powell says. “They see the brands and recognize the names, but they don’t recognize the bottles because they’re so old. It really does provide a unique experience.”

A self-described Bourbon geek, Powell says his bar and retail shop wouldn’t be the same without the Vintage Spirits Law. Neat opened in 2021 and Powell estimates that on the bar side, 95% of the products offered for sale are acquired through the Vintage Spirits Law, and on the retail side, it’s as much as 99% of business. Powell takes a page from wine’s playbook when describing the definition of vintage as it pertains to the spirits law, noting that a 2013 release may be better than a 2012 for both wine and Bourbon. He goes further to say that single barrel expressions qualify under the law, as different barrels have different taste profiles and are more sought after by consumers, thereby making them unavailable through traditional channels. “Vintage doesn’t always mean antique,” he explains, adding that some of the state’s ABC enforcement officers have varying degrees of interpretation on the law. Going forward, that needs to be a primary focus for clarity and greater understanding on all sides of the law, from the top down.

At Neat, the law isn’t only used for Bourbon, either. “I have 1930s Italian amari and I’ve branched out into other things like Chartreuse. I have really unique items,” Powell says. “We get Bourbon geeks who’ve tried everything we have and they really like when I bring out some crazy weird products. The law works great for me and I’m utilizing it to the fullest.”