In American whiskey, few phrases trigger as much debate as “sourced whiskey.” For some, it’s shorthand for deception: brands masking mass-produced spirits behind stories of frontier families and dusty rickhouses. For others, it’s a practical business model—a way to bring quality bourbon to market, fund future distilling ambitions, or elevate blending as an art form.
So which is it? Is sourcing a symptom of what’s wrong with the whiskey industry—or a catalyst for what’s right?
The answer isn’t black and white. Sourced whiskey isn’t the problem. Secrecy is.
Thanks to brands like Bardstown Bourbon Company, a new standard is emerging—one where transparency, collaboration, and quality take precedence over narrative sleight-of-hand. In this new era, trust matters more than tradition. And whether your whiskey is born in a DSP-ky rickhouse or shipped from MGP’s stills, what counts is whether the label tells the truth.
A Brief History of Sourced Whiskey in America
Sourcing isn’t new. In fact, it’s foundational.
Before the craft boom, most whiskey was sourced in some form. In the post-Prohibition era, distilling was highly centralized. Independent bottlers, rectifiers, and distributors filled branded bottles from large producers and sold them under regional names. It was commonplace for brands to purchase “bulk spirits” from established distilleries like Heaven Hill, Barton, or Brown-Forman.
Even beloved historic brands—Old Forester, Old Crow, and even pre-NDP versions of Willett—spent time bottling sourced or contract whiskey. What changed in the modern era wasn’t the practice. It was the marketing.
The Modern Sourcing Boom—and Why It Backfired
The American whiskey resurgence in the early 2000s created an opportunity. Consumer demand outpaced supply. New brands saw a gap: build a label, bottle sourced whiskey, and grow quickly. Investors poured in. Dozens of startups launched with limited capital, no distillery, and barrels from MGP or Kentucky distillers.
Many hoped to eventually distill their own. But in the meantime, branding carried the weight. Stories were written. Traditions were invented. And in many cases, labels and websites implied a level of production that didn’t exist.
What began as an entrepreneurial strategy soon became a credibility crisis.
The Fallout: When Sourcing Turns into Sleight of Hand
Templeton Rye: The Lawsuit That Changed the Game
Templeton’s label once claimed to be “Prohibition-era recipe Iowa whiskey.” In truth, it was sourced from MGP in Indiana and flavored before bottling. Consumers filed a class-action lawsuit in 2015. The company settled, agreeing to change its labeling to “Distilled in Indiana” and pay refunds.
The damage was reputational. Templeton became shorthand for misrepresentation, and the broader industry felt the tremors.
Tin Cup: Colorado Story, Indiana Spirit
Marketed as Colorado-made whiskey, Tin Cup’s early product was entirely MGP bourbon. While legally compliant, the heavy use of Rocky Mountain branding gave many the impression of a local craft spirit. Only later did Tin Cup incorporate Stranahan’s Colorado whiskey into its blend.
Broken Barrel: Oak Innovation with Hidden Origins
Broken Barrel built its name on a clever idea—finishing sourced whiskey with staves from broken barrels. But early iterations featured branding that emphasized California creativity without making the Kentucky/Indiana source whiskey prominent. Transparency improved over time, but the initial messaging left many confused.
Redemption Rye: Reborn, But From Where?
Redemption Rye positioned itself as reviving classic American rye. It’s a good whiskey—no doubt. But it’s entirely MGP. Until recently, labels lacked transparency about its source, leading to consumer critiques online. Like many others, Redemption eventually evolved toward clearer disclosures.
The Labeling Loophole
So how did this happen legally?
According to the Alcohol and Tobacco Tax and Trade Bureau (TTB), whiskey labels must disclose where the whiskey was distilled only if it was bottled in a different state.
That means:
A brand based in Texas can import barrels from Indiana, bottle them in Texas, and legally market it as “Texas Bourbon” without disclosing it was distilled elsewhere—so long as it was bottled in-state.
The key issue?
“Texas Bourbon” is not a legally defined designation. Neither is “Colorado Bourbon” or “New York Straight Bourbon.” Unless a whiskey claims a protected designation like “Tennessee Whiskey,” these regional phrases are marketing language—not regulated terms.
Phrases like “crafted in,” “bottled by,” and “produced in” are TTB-compliant—but often ambiguous. Unless a brand voluntarily discloses, the true source may never be known to a casual consumer.
This isn’t just misleading. It erodes trust. And it’s why a growing segment of the whiskey world is calling for more than compliance—they’re calling for transparency.
Why It Matters: The Psychology of Whiskey Loyalty
Whiskey drinkers care about place. Kentucky, Tennessee, Texas, and Colorado aren’t just regions—they’re identities. They evoke specific climate effects, aging profiles, and generational craft.
When a brand co-opts that sense of place while bottling sourced barrels from another state, it feels dishonest—even if it’s technically allowed.
Trust is the real currency in whiskey. A $60 bottle that says “crafted in the Blue Ridge Mountains” but contains Indiana rye risks betrayal. Once broken, that trust is nearly impossible to regain.
But It’s Not All Bad: The Case for Ethical Sourcing
Sourcing is not inherently deceptive. In fact, when done well, it’s a legitimate business model—and even an art form.
Barrell Craft Spirits
Barrell doesn’t distill. They blend sourced whiskey from Kentucky, Indiana, and Tennessee to create limited-batch expressions. Their labels break down age, origin, and proof. The result? Critical acclaim and loyal followers.
High West
Founded in Utah, High West was transparent from day one. Their early ryes were sourced from MGP, blended with house-made distillate, and labeled accordingly. That honesty earned them respect long before they scaled.
Pinhook
Based in Kentucky, Pinhook built its brand on blending sourced whiskey while waiting for its own Castle & Key distillate to mature. Each vintage lists the source and mash bill. Now, Pinhook is transitioning to 100% in-house whiskey, and its following has only grown.
The Bardstown Model: Sourcing Without Secrecy
No brand has done more to reframe sourcing as an asset than Bardstown Bourbon Company.
Founded in 2014, Bardstown built one of the most advanced distilleries in the country. But rather than focus solely on its own line, it launched a Collaborative Distilling Program, helping dozens of brands create their own products with custom mash bills, fermentation profiles, and aging regimes.
Bardstown didn’t stop at production. It led with transparency.
What Makes Bardstown Different?
- Custom Contract Distilling: Partners aren’t just buying barrels. They’re designing whiskey.
- Detailed Labels: Every bottle—Discovery, Fusion, Origin—discloses what’s sourced, what’s house-made, and in what ratio.
- Consumer Education: Bardstown embraces blending as a craft, not a compromise. Its tasting room and tours break down the entire process.
The result? Bardstown has become a beacon of innovation and integrity in modern whiskey. It’s not hiding its sourcing—it’s celebrating it.
A Better Path Forward: Transparency Standards
The whiskey industry has an opportunity to set its own ethical benchmarks. Here’s what a more transparent sourcing culture could look like:
- Standardize Labeling Language
Require that all sourced whiskey be labeled as “Distilled in [State]” even when bottled in the same location. - Voluntary Truth Panels
Encourage brands to publish full origin and aging data online—even beyond what’s on the bottle. - Educate Consumers
Trade organizations and media outlets should continue explaining the difference between sourcing, blending, finishing, and distilling. - Celebrate Transparency
Reward brands like Bardstown, Barrell, and Pinhook for doing it right. Let consumers see that honesty isn’t just ethical—it’s commercially viable.
Final Pour: Trust is the New Terroir
In wine, terroir is everything. In whiskey, trust is the new terroir. It’s what gives a bottle its soul.
Consumers don’t need every whiskey to be made grain-to-glass by a sixth-generation distiller. They just want honesty. If it’s sourced, say so. If it’s blended, own it. If it’s finished or aged elsewhere, tell the story.
Because once consumers know you’re telling them the truth, they’ll come back—not just for the whiskey, but for the brand behind it.
Sourced isn’t the enemy. Secrecy is.
