by Fred Noe
We got creative, did a little innovating.
Enter Red Stag by Jim Beam, the very first flavor-infused bourbon in our long, long history. Black cherry flavor to be exact. (Check out page 70 for its taste profile.) This marked a big change for us, and the category shook things up. To be honest, there were a lot of skeptics out there, and probably the biggest one of all was me. I admit when we launched the product a few years ago, I pitched a holy fit. I didn’t like the idea of flavoring bourbon at all, and I let my opinions be known. People in the industry knew what I liked to drink: Beam, straight up, maybe some water back. I’m a purist, classically trained, studied at the Juilliard of whiskey. Adding a flavor to the centuries-old recipe? Sacrilege and holy shit! What would the ghosts think? Booker will come back and start kicking ass. I didn’t even want to taste the product. But the brand people worked hard on me, flew down to see me, kept after me to try it. So eventually, I took a sip. Then I took another, and then one more and before you know it, it was all gone. Not bad. In fact, more than not bad; pretty good. Booker might even approve. I cleared my throat, looked at my empty glass. Need to play politician here, clarify my original position. Now, what I meant to say was. . . .
Red Stag by Jim Beam was a hit, took off a like a Kid Rock song going up the charts. (Red Stag by Jim Beam sponsored him, in case you’re confused by my reference.) This was what they call a watershed moment, a turning point for Beam Inc.
The product was important to us in a lot of ways: (1) We changed before we had to. We went out to market with something new, something different on our own, not in response to some problem or shrinking market. (2) We reached out to a whole new audience, people who might not necessarily be bourbon drinkers, such as women. (3) We broadened the shoulders of our flagship brand, Jim Beam Bourbon. People who liked Red Stag by Jim Beam might tiptoe over to the big dog, pet it, take it for a walk around the block, come back the next day, become friends. So it was all good. In fact, it was so good, that we added two more flavors: Honey Tea and Spice. More variety for more people to choose from. More flavors for bartenders to play with. A centuries-old category and a centuries-old company, getting all creative. Look at us now, brother.
But we didn’t stop there. Not this time. This time we understood that the consumer likes new things, like to see what’s out there. So in 2011, we came out with another new expression: Devil’s Cut. Killer name. Killer bourbon. This one’s got a pretty good backstory and I’m proud to say that I’m in it.
Years ago, back when I was maybe around 13, Booker was fooling around at the distillery, trying to make some wine, and he needed a barrel to age in it.
“Drive up to the dump room and get me an old barrel, hurry up,” he said, throwing me the keys to his truck. I was amazed, not that he was making wine at a bourbon distillery—Booker made everything at the distillery—but that he had just given me the keys to his truck. Like I said, I was 13. So I ran over to that truck before he could change his mind, threw it in gear, drove up to the dump room, and asked one of the workers to help me load a barrel into the back.
“You know, there’s a lot of good whiskey in that barrel,” he said after we were done.
I looked at that man. He was an old-timer, a whiskey veteran through and through, and I thought he had probably drank his lunch. That barrel was as empty as my pocket.
“There’s nothing in it,” I said.
“Hell, boy, look close, get your head in there.”
I didn’t budge. In fact, I started inching away, backwards. “Don’t see nothing.”
“Can’t see it with your eyes, you have to see it with your nose! There’s whiskey in there all right and a lot of it. It’s in that wood, Freddie. It’s hiding in there deep. The wood absorbs it and it stays there getting old and good. Got the best flavor. Can’t you smell it?”
I closed my eyes, took a sniff, got a good whiff. “Oh.” Suddenly I understood. Kind of.
“I’m going to give you another barrel, Freddie. Take it on home and put some water in it, put the bung back on it, roll it around for a while, sweat it, then set it upside down on a couple of bricks. Remember to put a pan under it. In a day or so, knock that bung out of it and you’re going to get a pan full of high quality bourbon.”
I studied that empty barrel. No bourbon, then bourbon. Just add water. This sounded like magic. “You sure about that?”
He rolled another barrel over to the truck and lifted it on in. “Hell, yes, I’m sure about that. Now go home and try it. You’ll thank me one day.” He started back to the dump floor but stopped halfway and turned. “Hey, how old are you now?”
“I just turned twenty-one.”
“Right. You and me both, boy. Listen, just to play it safe, don’t go telling your dad I told you this now. Tell him one of your cousins told you, Baker maybe, or you learned about this at school or something.”
“Yes, sir, I won’t,” I said, eyes still on those empty barrels.
So I went home with that extra barrel and did what the old-timer said: put water in it, sweated it, then set it up behind the shed in the corner of our backyard away from prying eyes. That first night I checked on it, stared at that barrel for a long time, said the Rosary, praying for the second coming of bourbon. A couple of days later, when I knocked the bung out, my prayers were answered: drinking whiskey flowed out of that once-empty barrel; that pan became full of it.
Fast forward about 40 years. I’m sitting in a meeting with our innovation team, kicking around ideas, looking for the next big thing. Someone asked me about growing up at the plant, what Booker did when he was at Boston, and that story came back to me, so I shared it. Wish I had sunglasses after I did, because so many light bulbs went off, I almost went blind.
Devil’s Cut was a hit. (See its taste profile on page 70.) A great-tasting whiskey that’s a little different. Wish I could remember that old-timer’s name. I’d give him a case (or two) for sure.
Devil’s Cut, Red Stag by Jim Beam—we keep moving forward. Not long ago we came out with a Knob Creek Single Barrel, in addition to the best-selling Small Batch version, and a Knob Creek Rye. More variety, more innovation, more choices for our customers; something new from a very old company. All good stuff.
And our sales have responded to what we’re doing. Thanks to our innovation and our premiumization (upscale brands), bourbon was the fastest-growing large category in the United States in 2011. That’s something the whole industry is proud of, something we can all brag on.
So, it’s working . . . and we keep working, no longer content to rest on our laurels. What’s next, I’m not sure. (Hell, I wouldn’t tell you if I knew anyway.) I imagine new flavors, new ways to finish our bourbons, maybe higher-end products, maybe not. We’ll have successes and we’ll probably have a few belly flops too. All I can be sure of is that whatever we finally come up with will be different and, hopefully, good.
I also know that any new products will remain true to our core values and our history. In other words, our integrity and our long tradition and sacred process will be protected. I’m going to make sure of that. I’m a Beam, and that’s my job.
BOURBON PRIMER
The Beam Master Distillers and Their Bourbons
Over the generations, my forefathers have overseen the production of a number of various bourbons. Here’s a partial list of some of the bigger brands and who oversaw what during their entry into the marketplace. This list is not all-inclusive; we produced a number of small bourbons back in the old days.
Jacob Beam and David Beam (unofficial name):
Old Jake Beam
David M. Beam:
Old Tub™
Jim Beam (pre-Prohibition):
Clear Springs Bourbon
Pebbleford
Jim Beam (post-Prohibition):
F.G. Walker, Five Beams, Cave Hollow, and Colonel James B. Beam
Jim Beam® Bourbon
T. Jeremiah Beam:
Jim Beam® Rye
Beam’s Pin Bottle (8
and 10 years old)
Beam’s Choice
Jim Beam Black® Label
Booker Noe:
Distiller’s Masterpiece by Jim Beam2
Jim Beam Black™
Jim Beam Ready-to-Drink (and Cola/Ginger Ale)
Booker’s®, Baker’s®, Basil Hayden’s®, Knob Creek®
Fred Noe:
Jim Beam® 17951
Jim Beam® Small Batch1
Knob Creek® Single Barrel
Knob Creek® Rye
Red Stag by Jim Beam®
Devil’s Cut®
Jim Beam® Honey1
1Limited edition
2International only
1The recipe situation was eventually rectified. We bought Old Crow in the 1980s, and it’s a good product now. Don’t believe me? Go taste it. Good everyday whiskey.
CHAPTER 10
THE BEAM WAY
How to Build a Company That Lasts
Back in 2011, Jim Beam Brands went public. I had the privilege of going to the floor of the New York Stock Exchange with our CEO, Matt Shattock, and other executives to celebrate. We also changed our name to Beam Inc. that day. Pretty simple, pretty straightforward. One word that says it all.
As you can imagine, it was a proud day for us and it got me thinking. As I’ve said two or three hundred times in this book, we’re an old company, one of the oldest in America. Not many companies have a history like ours. Long, consistent. Not many companies have had one family involved from the start.
So, as I said, I did a little thinking about the reason for our longevity, pondered why we’ve outlasted dozens of competitors—hell, dozens of industries (the horse and buggy, the telegraph, eight-tracks, VCRs)—and in the process, I put together a short list of things that have contributed to our success. If you’re already working in a company or thinking of building one that lasts, you may want to read up. (Look at me now: bad student turned teacher.) Most of these observations and thoughts are pretty basic, really more common sense than anything. You probably won’t find many of them in a management course at Harvard. But that’s how we like to operate at Beam. Direct. To the point. I think that approach works best for most things in business and in life, so here it goes, What Fred Noe Knows:
1. Discipline and focus: I think I’ll start here because when you talk about my family, you have to talk about focus. Throughout the years, we’ve maintained a single-mindedness about us that has kept us on the right track. From the start, when Jacob carted that pot still over the Wilderness Road into Kentucky and set up shop, he knew what he wanted to do and he stuck with it. Eyes on the prize. I’m sure he got sidetracked from time to time, I’m sure obstacles arose and unforeseen challenges surfaced, but regardless, he stayed true to the task at hand, and never lost sight of the goal: make the best whiskey.
I think focus—setting one goal and never deviating from it, having it serve as your guiding light through good times and bad—is more than just important for a company and for a brand, it’s essential. Everything you do has to relate back to it. So make sure you have a goal, just one now, and go out after it. And every day, make sure you’re making progress toward it. At the end of the day, when you’re turning out the lights, ask yourself: Did we move a little closer to it? Did we get anything done today that we didn’t yesterday? And it’s important to remember not to get discouraged. Progress comes slow but then it can come fast. It took us generations to get to where we are now. So keep your focus and don’t get distracted. Success doesn’t come overnight. If you do something long enough like we have, eventually, you’ll reach that goal. Then it’s time to set a new one.
2. Innovation: I kind of covered this in the last chapter, but it’s so important that I’ll add to it. No matter what business you’re in, change is critical. I’ve seen this close up. After years and years—hell, after generations really—the distilling industry is changing. There’s lots of small microdistilleries popping up around the country making all kinds of new, different, and in some cases even good whiskey and spirits. They’re even making bourbon in New York. The next Jim Beam might be out there for all I know. My point is that you’ve not only got to keep up, you have to anticipate what’s coming down the pike. Keep your eyes and ears open to new opportunity, keep your mouth shut, and take good notes. Listen and learn. I already told you what happened to the bourbon industry in the 1970s: we got caught flat-footed, put our head in the sand, and when things started to change, we weren’t ready. It showed on our bottom line, and we ended up paying a steep price.
We’ve learned our lesson since, though, and we’re into innovating now. Research and development. Red Stag and Devil’s Cut are proof positive that we’re committed to new thinking. In fact, we’re so committed to it that we built a state-of-the-art Global Innovation Center on the grounds of the Clermont distillery. This is where science and craft meet. This is where good ideas come from, ideas that are going to make a difference in our future and in our industry. So always be thinking about what’s next. I guarantee you, your competitors are.
One more thing in regards to innovation: don’t be afraid to fail while you’re trying to get creative and launch something new. Over the years, we’ve made mistakes; all our products haven’t been home runs. Years ago, we came out with a tequila that had chiles in it. A novelty. This was going to change the game, make us a player in the category. Well, that product bombed like the New Coke, and it’s just a memory now. We’ve had other strikeouts too—a micro-bourbon (never was sure what that was) that had micro-sales comes to mind. Regardless, we kept plugging away. So don’t be discouraged; get off the ground, dust yourself off, and keep looking for the next best thing. After more than 200 years, we still are.
3. Humility and remembering your roots: Keep it real, brother. Never get too impressed with your own success. Never think you know all the answers, can solve all the problems. Never think you can’t get better. Most importantly, remember where you came from. Remember your roots. I think that’s something we’ve done pretty well at Beam over the generations. It started with our family; overall we’re a pretty modest bunch. Jim Beam was a reserved man, and for the most part my uncles and cousins were and are a pretty laid-back bunch. Okay, Booker might have been one big exception, but he never lost sight of what was important and for most of his long career, he was just a working man who put his job and our bourbon first. He never asked for the limelight, it came to him. I think that attitude permeates the company. At least I’d like to think it does. No matter how big we’ve gotten, no matter how many countries we’re sold in now, no matter how many products we have and sell, at our core we’re still that little family-run business starting out in the foothills on Hardin Creek. Just a Kentucky company doing what we do best, doing what we know. Staying humble can be easier said than done, but getting a big head and starting to believe your own hype leads to complacency, which leads to sloppiness, which leads to mistakes. We’ve outlasted a lot of competitors and companies because we’ve never taken anything for granted. Got to work for it, got to get better, every day.
4. Consistency: My last point kind of leads into this point. If there’s one thing that distinguishes Beam from everyone else, it’s our consistency. Over the generations, we’ve mastered a few things, learned to do them right, and every day we go out and do them. Bourbon making is a process; you can’t take shortcuts, can’t do one thing one day, one thing the next. Got to do the same thing: every day, every week, every year. So, regardless of what industry you’re in, perfect your process, and once you get it right, go out there and do it again and again and again. Be the Master Distiller of your own business, perfect your craft, then share that knowledge with your team and make sure they all understand how important it all is. Make sure they understand that being consistent in what you do is what will separate you from everyone else.
5. Teamwork: This might sound a little clichéd, but you need everyone pulling together if you’re going to get anywhere. At Beam, we’ve tried to all get (and
stay) on the same page; it’s a priority. Over the years, we’ve made an effort to ensure that everyone understands where we’re going and how we’re going to get there. And we’ve made sure that everyone has a role, from the people in marketing and the sales team out in the field, to the men rolling barrels off a truck. It’s all important, it all matters, it all makes a difference. Everyone has to contribute and everyone has to help each other out. Despite our name, we didn’t get to where we are because of one man or one family. We got there because of the efforts of thousands of people and dozens of families over hundreds of years. It’s been a collective thing. So make sure that your team all understands what the goal is and the strategy you’ll use to get there. Then go out there and get it done.
6. Creating a family: The people who work for you are more than just employees; they’ve got problems, hopes, dreams, kids, and parents. In other words, they’re people, so you’ve got to make an effort to understand them and their lives. I think we’ve done a solid job of doing just that at Beam. We’ve had people working at our distilleries for years, if not decades. Generations of fathers and sons, even mothers and daughters, more than one husband and wife. There’s a reason for that: we’ve tried to treat them all with respect, we’ve tried to help them out when we can. We’ve been firm at times, but hopefully always fair. Once people know that you care about them, once they feel like they have your respect, they’ll be happy, and a happy team is a productive team. It hasn’t always been perfect for us, we’ve had issues over the years, but just like a family, we’ve worked it out, stayed together, solved the problems. Our company started as a family-run business, and we’ve made an effort to keep that feeling, maintain that environment.
Family. It’s kind of the essence of Beam. It’s worked for us, and it can work for you too.
7. Pride and passion: You’ve got to have both of these if you’re going to make it. You have to believe in yourself, your product, and your company. You have to believe that you’re different, better. And you’ve got to stand up tall and let your work speak for itself. Be proud of and passionate about what you do. Strive to be the best. More than anything, I think our pride in our bourbon and our passion in making it have sustained us over the years. Our name was, and still is, on the bottle. We simply could not fail. We simply could not be second best.