American bourbon does not have the deep tradition of scotch or even Irish whiskey. In many ways, it has followed the same arc as the country which claims it.
Bourbon has always been a little rough around the edges. A less refined answer to the whiskey offered by other countries that has hundreds of years of history.
Related: Popular convenience store chain closing all locations
But, just because bourbon is a bit of an upstart in the whiskey world does not mean that it lacks standards. What exactly makes a bourbon bourbon is set by federal law.
“For a whiskey to be considered bourbon, its mash — the mixture of grains from which it is distilled — must contain at least 51% corn. The rest of the mash is usually filled out with wheat, or rye, and malted barley,” according to the law.
💵💰Don’t miss the move: Subscribe to TheStreet’s free daily newsletter 💰💵
In addition, the mash must be distilled at no there than 160 proof and placed in barrels at no higher than 125 proof. Those barrels must be made of new charred oak and there can be no additives in the process at all.
To be called straight bourbon, it must be aged at least two years and any bourbon aged less than four years has to note that on the bottle.
Bourbon can only be produced in the United States.
TheStreet/Shutterstock
Emerging bourbon brand has struggled
While the exact creation date is not know, bourbon traces its history back to a few years after the United States was established in 1773. Bourbon is believed to have been invented in the 1780s
That makes bourbon a relatively new player given that scotch traces its lineage to 1495 and Irish whiskey is even older, dating back to 1405.
Luca Mariano Distillery does not go back far in the world of bourbon, but it’s trying to make a mark.
Founder Francesco Mariano began distilling as a hobby in his garage in 2010.
“He hadn’t planned on it becoming a business. After having a neighbor over to enjoy what he had created, his neighbor told him that it was illegal to distill bourbon in his garage. After discovering that his hobby was illegal, Francesco called his lawyer to help him obtain a license to distill bourbon, so he could carry out his grandfather’s dream,” the company shared on its website.
More Retail:
- Costco quietly plans to offer a convenient service for customers
- T-Mobile pulls the plug on generous offer, angering customers
- AT&T makes generous offer to older customers
Mariano named his new distillery, Luca Mariano Distillery after his son, who was named after his grandfather. That same grandfather taught him how to distill bourbon.
In 2017, he found a 553 acre farm in Danville, Kentucky for the distillery.
“The farm includes a stone house that was built by a man named William Crow, which is the oldest stone house in the State of Kentucky,” according to the website.
Luca Mariano Distillery has filed for bankruptcy
A lot of work goes into opening a distillery and LMD has spent years preparing to have a product to sell.
“Before our barrels are assembled by Independent Stave Co., they age the white oak wood for 18 months,” the company shared on its website.
It also takes years to actually produce bourbon and rye.
“All of our products are aged for no less than four years before they see a bottle. To represent the high-quality bourbon that is inside the bottle, we worked with the best designers in the industry to design the branding, bottles and packaging,” the company added.
After all of those years of preparation, the company has apparently run out of money.
Luca Mariano Distillery filed a petition in the U.S. Bankruptcy Court in the Eastern District of Michigan for Chapter 11 reorganization bankruptcy.
The small craft distillery, which held its grand opening in June, said in the filing that it estimates its assets and liabilities are between $1 million and $10 million.
“We filed to maximize the value of the assets for all stakeholders,” Viola said in a statement Friday afternoon. “Luca Mariano Distillery and LMD Holdings have a successful business model, have weathered the prior economic challenges in our industry, and are poised to emerge successfully, ideally with the support of its employees, customers, community and creditors.”
Related: Women’s fashion chain closes dozens of stores, no bankruptcy
The Chapter 11 filing was made in order to delay a judge’s order to push the company into a receivership where it likely would have been sold.
In June, the Kentucky Herald-Leader reported that the distillery was facing multiple liens over unpaid debts of over $3.8 million. It is not the only emerging Kentucky distillery facing debt issues, according to the paper.
- A lien for $1.7 million was filed in May against Whiskey House of Kentucky in Elizabethtown.
- And in April, Garrard County Distillery, in Lancaster, was placed in receivership amid $2.2 million in liens. In all, Truist Bank claims Garrard County owes it more than $26 million.