When a bottle of Pappy Van Winkle goes for more than $6,000, it’s just a matter of time before felonies get committed.
The Virginia Alcoholic Beverage Control Authority—ABC for short—saw an inequity in the supply and demand seesaw and wanted every Pappy fan to be able to have a shot, so to speak. So, the ABC started a lottery system to dispense limited quantities of rare releases without a few fanatics driving the price up to ungodly amounts.
And, naturally, people saw this as an opportunity to exploit a system.
First of all, bourbon collectors have cult-like online forums full of rabid users trying to gain cred by posting about spending a ton on super rare stuff. They discovered that some buyers were snatching up bottles long before the lottery information was being made public and got the details on which store had what bottle and when. Bottles started selling out suspiciously fast, frustrating fair-minded collectors. Turns out a former ABC sales associate was offering inside information for sale.
The Internet and Ill Will
Edgar Smith Garcia pled guilty to felony computer trespassing after he was implicated in a scheme to sell ABC’s inventory data to buyers looking for early intel on which stores would be carrying which hard-to-find bottles of bourbon. His alleged accomplice, Robert Williams Adams, was the one trying to sell the intel online. Officials at the ABC acted swiftly. Both Garcia and Adams faced criminal charges. They were both banned from ABC properties and fined. And as a way for collectors to fairly acquire special offerings, the ABC instituted a randomized drop system where details were embargoed—even from employees—until they’re ready to be announced. This usually means getting only a five-minute warning—meaning the store has a five minutes heads-up before the public is notified about when and where the drop is taking place, since they’re not happening at every single store.
Drops work like this: Allocated items come into the Virginia ABC warehouse in Hanover County, and are randomly selected to go out to stores with normal shipments. “Those are going to be checked by staff, however, they’re going to be kept in the stockroom,” says Pat Kane, public relations specialist for the Virginia ABC. The staff can’t disclose what they have, whether or not they have it, or how much they have to customers until they get a drop notification from headquarters.” Virginia ABC CEO Travis Hill is optimistic that the drop system will help ensure an equitable environment for its customers.
Attempting to Equalize Supply and Demand
So, between the drops and the lottery, Virginia’s ABC is doing its best to democratize the availability of rarified booze. The lottery process is only open to state residents, and a lot of Virginians want the rare stuff that’s hard to come by.
In six lotteries held in the first half of 2023, upwards of 72,000 entries were logged for higher priced bottles. Sometimes just one bottle is put up for the lottery. In April, the Pappy Van Winkle Family Reserve Bourbon 23 Year drew 53,539 entries, each paying $329.99 to play the lottery. In January, 950 bottles went for $49.99 each to winners.
There’s a process for commercial businesses, like restaurants, and one for individual collectors. Steve Dickerson, a collector from Short Pump, enters the Virginia ABC lottery every time it’s held.
“The lotteries are online and simple to enter,” he says. “Even if it’s a bottle you don’t really want, it’s good to trade with another aficionado for something else youmay prefer.” Dickerson’s won the lottery twice in the past five years and likes the system. “We’re lucky in some respects in Virginia,” he says. “Things might be scarce or only available via lottery, so when you do get something it’s at retail pricing rather than secondary [marked-up] prices.
“I once paid $300 for a bottle of Pappy Van Winkle that is available right now in other parts of the U.S. for $3,500 or more because of demand.”
Bourbon Stalkers Ruined It for the Rest of Us
And this is why: “In the past, we had folks following our trucks, if they knew there was a delivery today,” says Mark Dunham, Virginia ABC’s chief retail operations officer. “And then they would literally watch cases coming out of the truck to see if there were any allocated products.”
Dunham says a randomization process now prevents leaked information, or the ability for folks to figure out where limited availability products are going to be dropped.
But whether it’s rare or not, Steve Dickerson says bourbon is meant to be enjoyed.
“Drinking whiskey is as much about the experience and sharing with friends and family as anything. While it’s good, the Pappy is not 10 times better, but the fact it’s rarer or harder to get, or your drinking pals have never had it, adds to the experience,” he says. “Like anything else, the fun and enjoyment are not only the tastings and discoveries, but making new friends and sharing mutual interests.”
For more information on purchasing limited availability products, Virginia ABC recommends signing up for the Spirited Virginia e-newsletter at ABCVirginia.gov, or the Spirited Virginia Facebook page, and/or follow Spirited Virginia on Instagram @SpiritedVirginia.
Patrick Evans-Hylton is an award-winning food writer and Certified Bourbon Steward.
