Written by Tom | 15th January 2020
17th January, 2020 marks one hundred years since a law banning alcohol was ratified by the government of the United States. While much has been penned analysing the consequences and impact of Prohibition on American society, the world of whisky producers, was arguably forever changed for the better. We sat down with whisky expert, Mark Dermul, to talk shop about whisky, the mafia and the clandestine history of one of the world’s favourite spirits.
So, why did single malt whisky boom during the Prohibition era?
Mark: As often happens, legislation comes with few side effects and Prohibition was no exception. Immediately after the law came into force, a black market took root which inevitably led to organized crime, which wreaked havoc on the economy.
Most consumers were cavalier in their attitude to the law and turned to the illegal production and consumption of alcohol. Speakeasies—underground bars which took their name from the customers’ need to whisper to avoid detection by the authorities— flourished. These bars still needed whisky, but as the production on the home market collapsed, buyers had to look beyond the country’s borders for supply. Many Irish distilleries declined to take part, so Scottish distilleries quickly stepped in to provide stock.
Why was Scotland so on board doing deals with the US in what was essentially criminal activity?
Mark: Never underestimate the power of money! Members of the mafia would travel to small distilleries in Scotland whose exceptional isolation provided the perfect location to smuggle alcohol from. The single in single malt derives from the whisky being produced in just one distillery, and the need for discretion meant that choosing single distilleries was a more covert and likely more successful operation.
A loophole was also created that enabled certain malts to be prescribed to ‘patients’ for ‘medicinal purposes’ (Laphroaig is a good example). Some lovely bottles can still be found that have a back label that boldly states ‘for medicinal purposes only’. You can imagine that doctors back then were very busy. And the Scottish provided the ‘cough syrup’ too.
Whisky was imported from remote distilleries in Scotland
How did Prohibition shape whisky consumption then and today?
Mark: If something is forbidden, it becomes twice as attractive, so during Prohibition the consumption of whisky soared. Not only in the speakeasies, but also in the bars just across the Mexican and Canadian borders. It certainly put Scottish single malts on the map in the USA.
Pre-Prohibition whisky has become a notable seller – why do you think that is?
Mark: Pre-prohibition whisky is very rare. What was not destroyed (more likely consumed) during Prohibition is now over a century old. It goes without saying that these bottles – especially if they are still in good shape – command a high price with collectors.
Surely investing in a 100-year-old bottle of whisky comes with its risks?
Mark: Absolutely. As with every bottle of that age, there is the risk of evaporation, cork deterioration, damage to labels and so forth. Will the contents still be drinkable when you fancy a century-old dram? I recently found out when I opened a bottle of Cedar Brooks 9 years old 1913, bottled in 1924 (‘a pure whiskey for medicinal use’ it says on the label) and 30% of it had evaporated.
It was, unfortunately, not good and had clearly lost most of its alcohol content, making it flat and in all honesty, quite undrinkable. So if you want to invest in this type of bottle, make sure the seal is intact and the level high.
The end of the Prohibition era marked the beginning of a decades-long demand for single malt whisky that last up until today
Finally, what are some of the lasting effects of Prohibition we can still see today?
Mark: President Roosevelt realised that Prohibition did not have the desired effect and repealed the Volstead Act in 1933. On 5th December 1933, the Americans were allowed once more to produce and consume alcohol. Still, the law differs from state to county and even to jurisdiction, meaning that some places in the States are still classified as ‘dry counties’.
Another, more fun, leftover from Prohibition is the expression ‘The Real McCoy’. Today ‘the Real McCoy’ is slang for something authentic – not a replica, the real thing. One of the rum runners who smuggled whisky and rum via Bermuda to Canada and then into the United States, was Captain McCoy. So whenever you snuck into one of the speakeasies in your neighbourhood and you ordered a Real McCoy, the bartender knew he had to pour a dram from beneath the counter, containing quality single malt whisky.
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