This Saturday, Louisville will host the 135th running of the Kentucky Derby where every well-known celebrity from Hollywood and the sports world will be seen getting the royal treatment in Millionaire’s Row.  Regular attendees include paparazzi prizes like Michael Jordan and Brad Pitt.  The geniuses at Woodford Reserve have solved the problem of these big names having to drink the race’s most popular drink (the mint julep) from plastic cups and the same ingredients that will be sold 120,000 times that day.  For $1,000 Derby visitors can purchase the Woodford Reserve Mint Julep Cup that honors the three living Triple Crown winning jockeys and contains a mint julep that almost requires a tree-top flyer to import.

The actual cups are made by the official Kentucky Derby trophy makers, New England Sterling, and are sterling silver with a 24-karat gold-plating.  The ingredients are outrageous and include: sugar cane cut and crushed by hand from Sainte Marie in the Reunion Island of France; Turkish mint grown near the Euphrates River; ice made of water from an aquifer in the wilderness of Central Norway; and a small batch of the Master Distiller’s personal selection of Woodford Reserve super-premium bourbon.  Not bad for a grand.  But this is the best part.  Proceeds from these sales will go towards the Permanently Disabled Jockeys Fund and the Robby Albarado Foundation charities. 

These cups can be purchased online at www.woodfordreservemintjulep.com but don’t wait too long fans of Turkish mint.  There are only 99 cups available.

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3 of The Bourbon Review publishers with former KY Governor and current State Senator Julian Carroll.  Carroll was one of the few lawmakers who voted against the alcohol tax increase. L-R Seth Thompson, Gov. Julian Carroll, Justin Thompson, and Brad Kerrick

April 15^th. Tax Day. The only day working Americans can get a pass on cursing Uncle Sam, threatening desecration to every monument in Washington, D.C. and dreaming about changing their citizenship; as long as that check to the IRS is already postmarked and in the mail. This installment of Tax Day 2009 will see gatherings of citizens all over the U.S. protesting at “Tea Parties” to rally against what the organizers believe is the government’s misuse of their income that’s paid as taxes. Arguing over taxes in this day of age is not an original argument for this country. The first Tea Party happened in Boston over 235 years ago in 1773. A few colonists were angry over paying tax on imported tea, so they simply threw the tea in the sea. Shortly after the original “taxapalooza” Americans in 1794 once again went berserker on tax collectors and staged the Whiskey Rebellion. In this instance, Americans in Pennsylvania were outraged over the government’s enforcement on taxes against distilled spirits. George Washington quickly squashed the uprising, causing many of these distillers to relocate to Kentucky and start-up what is known today as one of the state’s flagship industries. It is hard to believe in 2009, that Kentucky lawmakers have set the stage for the second-coming of the Whiskey Rebellion by introducing new taxes that could threaten the growth of this industry and upset distillers so much that rumors of distilling operations moving outside the state have been heard.

On April 1^st of this year, the booming bourbon industry was delivered a low-blow by its lawmakers when Kentuckians were required to pay an additional 6% sales tax for the first time on alcohol. The tax was passed and quickly signed by Governor Steve Beshear in an attempt to cover the state’s 454 million dollar shortfall in the budget. So what’s the big deal you ask? Local, state and federal taxes gobble up an average of 53% of what is paid for a bottle of bourbon in the Bluegrass State which was the third-highest effective tax rate in the nation BEFORE the 6% sales tax was added according to the Kentucky Distillers Association. The timing of this tax could have not come at a worse time either. When small-business owners and retailers are doing everything they can to attract consumer traffic and stay in business, lawmakers have crippled the efforts of the 3,400+ liquor retail stores and countless restaurants and hotels who rely on liquor sales to pay bills. Not to mention the negative effect this will have on the Midwest’s largest growing tourist attraction, The Bourbon Trail, by threatening the 500,000 visitors who might not choose to visit as many distilleries because of the higher prices. There is also the competitive advantage that now has been lost to our border states who used to drive from Cincinnati or Southern Indiana into Kentucky to do their shopping for alcohol. Chances are those densely populated areas will see a reversal in business as more Kentuckians will go across the river for their booze to save a few dollars during these tough times.

Why would lawmakers make such a quick decision (it took only about a month to debate and pass the tax) even though several national and local economists believe raising taxes during a recession is a counter-productive move? First, you would have to examine the hypocrisy that is Kentucky politics. Kentucky is composed of 120 counties: 30 of which are wet and 90 that are dry. Those 30 counties include the most populated areas and enjoy the majority of the residents. Even so, there is a large portion of Kentucky that is dry and the vast majority of the lawmakers from these regions voted for the tax increase. Why are there so many dry counties in one of the largest alcohol producing states in the nation? One reason is bootleggers. In every single one of those 90 counties, bootleggers operate unbothered by the law, unregulated and untaxed. In most cases, they infiltrate the political circles and ensure that any talk of a county voting wet is squashed very fast. I grew up in one of those small dry counties and was shocked to find that alcohol was harder to score as an under-age freshman in college than it was as a freshman in high school. If you don’t believe that bootleggers have political-pull, then think about the last time the local news did a story about police busting a bootlegging operation in one of those rural counties. These dry counties do nothing to generate alcohol sales tax receipts, but they are more than happy to accept the tax-money that wet counties produce.

Even though Kentucky bourbon distillers are not used to getting support from their dry counterparts, this has drawn a new line in the sand and Kentucky’s neighbors to the north have noticed. Moments after the sales tax went into law, Indiana Rep. Baron Hill wrote a letter to Brown-Foreman CEO Paul Vargas, urging him to consider expanding their operation across the Ohio River into the Hoosier State. While most industry insiders believe the employer of 1,300 workers will keep most of their jobs where they are at, Kentucky’s bourbon industry should have never been put in the position to ponder such a proposal.

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The founding fathers of The Bourbon Review have had a blast producing the world’s only bourbon magazine.  This current issue marks the end of our first year bringing you the very best in Bourbon Country coverage.  We are very happy with the responses people have given us from our past issues and encourage any reader who does not appreciate our efforts to drink enough bourbon until the magazine reads well.  With that said, the recent status of the economy has forced most of us to reevaluate how we spend our salaries and quite possibly limit our libation habits.   But don’t fret too much bourbon lovers.  Bourbon is considered one of the best values in the land by most spirit experts.  The following recommendations are bourbons which we feel have exceptional value.  We hope you, the taxpayer, find this advice helpful until the government figures out a way to supply us all with mortgage-free homes, shared healthcare, wind-powered BlackBerries, and Bruce Springsteen’s total catalogue furnished by iTunes.

Most Economical Single Barrel: Four Roses Single Barrel and Eagle Rare 10 Yr.

For over 42 years, Master Distiller Jim Rutledge has watched over the bourbons that Four Roses produces.  For around $30, the common man (or woman) can enjoy this rye infused mash bill masterpiece, that is aged just enough to pick up on several characteristics that are commonly found in bourbons aged much longer.  A bottle of Eagle Rare Single Barrel 10 year is 90 proof and also runs for around $30.  This 10 year-old juice is a product of Buffalo Trace Distillery and continues the strong tradition of great bourbons produced there.

Best Values for around $20:  Old Forester Signature and Bulleit Bourbon.

Old Forester Signature packs a lot of punch for the price of an Andrew Jackson.  Since its 2006 launch and distinction from its father bourbon “Old Forester”, this award winning whiskey has always been a bargain.  Its zesty taste and smooth finish make it an easy choice for the money.  Bulleit Bourbon is the brainchild of Tom Bulleit, whose great-great grandfather started the family tradition of distilling.  The bourbon’s extremely high rye content gives it a unique taste that most bourbon veterans can appreciate.

Most Economical Party Pleaser:  Maker’s Mark

Perhaps no other bourbon has such a broad following as Maker’s Mark.  For about $25 this wheated bourbon usually pleases not only the stereotypical male bourbon drinker, but is also a big hit with many female bourbon fans.  Because of its readily acceptance, Maker’s is the easy choice when trying to entertain guests while also avoiding overdraft penalties.

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