The Balcones' Bust: Pro and Con

What is feckin whiskey doing on the net's leading independent rum website? There's a reason, read on, but it's not my fault! Honest...
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Capn Jimbo
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The Balcones' Bust: Pro and Con

Post by Capn Jimbo »

Yes, it's HUGE news in the world of whisky right now...

...and just like his products, there are two very distinct sides. The "pros" and "cons" are pretty equally expressed on the net, as also evident here. I'll try to be brief and summarize these views (honest).


The Pros...

1. Chip Tate is a boy genius, a true artist (this reflects his self-description as a "composer at the junction of art and science").

2. His products are amazing, earning sixty awards.

3. He's a master distiller who needs to be left alone.

4. The bad old Board of Directors is trying to move him out before the new distillery is even built.

5. Yes, he's temperamental but when he allegedly threatened to shoot the chairman of the board, and implied he'd rather burn down the distillery than give up his control, it was just words, simply his style. Whew!

The "pros" seem to be long time followers and fans. To them he is a true boy genius/artist who can do no wrong. They blame the situation on what they'd present as if it were a hostile takeover.


The Cons...

Trust me there are just as many cons as pros on the net. After viewing Tate's own videos (nearly an hour of his blather) and significant other research, a number of descriptors beckoned. Words like blather and blarney, micro-management, thin skinned, testy and the like. In elementary school it would be the kind of report card that includes comments like "...does not work well with others". Here's the con side...

1. Is Tate the artist and master the pro's put forth? Maybe not. What he is, like Thomas Edison, is a great experimenter. Edison didn't really invent the light bulb, but literally tried over a thousand different filaments to finally find one that worked. Likewise Tate is a great experimenter, one who is willing to tinker and try new things. He gets an "A" for uniqueness. He is not yet a master distiller/blender - skills that take decades and mentorship, but his products are of reasonable quality.

2. Around here, few of us have any respect for the near unending paid-for awards handed out by the "fests" and "competitions". San Francisco? Spare me. When the cult followers spotlight these "awards" they are simply justifying their inflated opinion of Tate. The real story is that there's a real division among true experts. Murray, Pacult and Ralfy gave great reviews, although Ralfy's score was not exceptional. Dave Broom, a number of Whisky Mag reviewers and Serge? Not so much, rather more average.

If you read these expert opinions without prejudice you will see that they are recognizing the uniqueness, newness and inventiveness. In this way, they want the new kid to succeed. But the experts who gave only average ratings - while also recognizing the uniqueness - reflected that their consideration of all the factors (complexity, quality, harmony, development, et al) meant these spirits merited only average scores, despite their novelty. Among net posters, the same, roughly equal division of opinion.

The point: the truly great spirits - think Lavagulin 16 - earn a preponderance of great reviews stemming from the consensus of the great majority of tasters/reviewers. In comparison, Balcone's mixed reviews are problematical. There is a reason they are mixed (covered elsewhere).

3. As far as being left alone, it is well to keep in mind that Tate selected the investors and - read this - delivered the company. His reward? A reported minority interest. When investors put up $10M dollars they insist on control, and will use it to protect and enhance their investment. If Tate thought that these guys would drop off a suitcase full of money and leave him alone to spend and use it without adult supervision, he was completely naive. If he failed to specify his control and personal role, shame on him and his cowboy attorney. Tate picked the investors, negotiated the deal, and signed it.

4. The idea that the bad old board intended to buy the company and then dump him - before the distillery was even built - is silly. Tate is far from the first inventive small business to sell out. But no buyer is going to dump the inventor before they even start up. Never, ever. Even if that was their intention, they'd make sure that everything was up and running, that they'd extracted every bit of knowledge and usefulness before - very slowly - easing the guy out. This is especially important when your guy is very well known with a rabid following. You'd have to a be fool to toss your founder/inventor/hero out so dramatically and in mere months yet, and before you made a drop of product! Fools they are not.

5. This one is just stupid. Lots of people are temperamental, ego driven control freaks. But they don't make stupid and potentially serious life-threatening an/or property damaging threats. Those that do can end up in both civil and criminal court. The "temperamental" defense of the followers only invalidates the rest of their slavish positions. Why no criminal charges? Smart businessmen they, the company, may hope that Tate's 90-day, "time-out" suspension will cool him off. They want him to know they are serious and trust me, there is nothing like a good restraining order to get one's full attention.


There you have it...


Both sides presented. The "pro" side was easy to present, the "con" side requires analysis from a distance. Personally I'm VERY pro micro-distillers, and Tate's early performance should serve as a positive example to all micro-distillers insofar as novel products. Unfortunately his personal issues seem to have interfered and led him to snatch failure from the jaws of success.

Such is life. Below you will find a few other links; the best and most complete (pro-Tate) is the first, The Coopered Tot...




*******
http://www.cooperedtot.com/2014/09/balc ... eaten.html (a must read)
http://whiskycast.com/management-stando ... -balcones/
http://themashnotes.com/balcones-bust/
Last edited by Capn Jimbo on Sun Sep 07, 2014 6:16 pm, edited 7 times in total.
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Post by Capn Jimbo »

I'm Balcone'd out, aren't you?


I'd already left this subject as more than well discussed, when Tate was unceremoniously suspended by the company, and for allegedly very good reason. Only an event of this magnitude could force me back onto this dead steer subject.

Chip, if you're reading this please have mercy. We're all tired here. Take a break - please!!
Last edited by Capn Jimbo on Sat Sep 06, 2014 10:48 pm, edited 1 time in total.
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Post by bearmark »

All I can say is that I'm glad you're not a judge. :P
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Post by Capn Jimbo »

So am I...


...it's hard enough to just be the messenger, simply having to report this young man's fall from grace. I support all crafters, especially one whose stills are pure pot. Unfortunately the actual judge's restraining order seems extreme, until you read the allegations made of Tate by Balcones:

http://www.wacotrib.com/news/business/m ... 0a001.html

...and then judge for yourself. Tate may as well have been put on house arrest. The restraining order is severe and complete; no judge would order such a comprehensive order without sufficient cause being demonstrated. Threats like those alleged are not taken lightly in these troubled times.

If the two parties can't reconcile their differences, then we lose both a promising young distiller and a brand that had legs. All lovers of spirits should root for a positive resolution...

Tate was surely an emerging talent but if Balcone's allegations are true, he will really need to dial himself down, and lock up his firearms and matches. Humble pie really isn't so bad after the first few bites...

There's just too much at stake. I wish all of them well - it won't be easy...
Last edited by Capn Jimbo on Sun Sep 07, 2014 6:35 pm, edited 1 time in total.
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Post by Capn Jimbo »

A surprising endorsement...


...by Josh Feldman of The Coopered Tot (linked in the OP). The Tot takes a pro-Tate position, but welcomed alternative opinions, including this one. Even though we disagreed on some points, I was surprised to learn that Feldman found the OP a good statement of both sides of the issues, and tweeted a link, plus a big plug for The Project.

This reminds me of the rousing but extremely respectful dialogues between JaRiMi in the old, old days. I'm also pleased to have interacted with the Bear, da'Rum and a few others more recently.

Good and honest debates have great value in helping a consensus to develop, not only between the parties, but more importantly for the thousands of readers who can compare alternative viewpoints.

Thanks to Josh. BTW - and I said this before his kind bon mot - his site was linked for the most complete post I'd found on the Balcones' Bust.
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Post by The Black Tot »

Mostly I am just grateful that I never got into Balcones whiskey.

I'm not even sure I want to know if I'd like it, now.

If they get themselves stabilized then perhaps I'll have a taste.
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Post by Capn Jimbo »

The Black Tot wrote:Mostly I am just grateful that I never got into Balcones whiskey. I'm not even sure I want to know if I'd like it, now. If they get themselves stabilized then perhaps I'll have a taste.

Bingo! You are not alone - the fruit of a poisoned tree, and the unavoidable result of this whole messy affair. We should all hope that the parties can work out their difference quickly; otherwise, the whole game may be over.

The Balcones and the products are so controversial that personally I'd love to have a taste. Whether that will to celebrate a reconciliation or mourn the passing of a valued craft distiller...
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Post by Capn Jimbo »

Climate effects of world's major rivers...


...for example, the Nile now has headwaters extending to Waco, Texas, lol. According to their news release of just a couple days ago promoting their wins at the "World of Whiskey" (see "Awards" section), they had this to say - or not say...
"News of the wins at Whiskies of the World come just as Balcones has closed on a $15 million deal to fund the construction and provide operating capital for an expanded distillery. Construction of the new facility will begin after the first of the year and is scheduled to be completed by October 2015.

The first set of custom-designed copper pot stills are currently being fabricated by Forsyths of Scotland and will be delivered to Balcones early next year. The new distillery, just a few blocks away from the old welding shop under a bridge, will be housed inside a historical landmark in downtown Waco and will provide an exponential increase in distilling capacity over the next five years. Balcones looks forward to utilizing this expanded capacity to meet the increa¬sing demand for the distillery's celebrated spirits. "
Not a word about the legal status of the Shootout at High Noon", at the new headwaters of de Nile...
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Post by Capn Jimbo »

Put yer money where yer mouth is...


Tate's cult following resembles that of the Preacher, or say Chuck Cowdery. These rabid followers take all the pronouncements of their fearless leaders as gospel. Heaven help those who dare to disagree, particularly in the bear's den. When you find yourself in a thread where close to all the posts are glowing defenses of their poor aggrieved hero, you know you won't be well received.

And I wasn't. Even my old friend Chuck Cowdery, and our multi-year, email relationship seem to come to near naught over my simply taking an alternative position. I will not join him in any namecalling, and I still recommend you buy his books, including his latest "Bourbon Strange".


Back to Tate

When I stepped into the cage, the STR8-boyz were immediately set abuzz, and responded to my now well known position with a furry flurry of activity. This was true also in any number of cult-following blogs who likewise proposed any number of Tate-supportive actions, including...

A crowdfunding effort! Wowee. That'll show em.
http://www.gofundme.com/euujb8

Now trust me, the mad cultists seemed to number in the many hundreds, if not more and they were RABID! A true and loudly buzzing nest of yellow jackets - do NOT poke, at your own risk. Now you'd think these many hundreds of offended and outspoken buzzies would be so off put, loved their boy so much, that they'd well, put their pesos where their puckering mouths were (and are), and toss in even as little as say $5 (the minimum). A show of broad support would surely be both dramatic and nicely symbolic, nicht vahr?

So guess how many and how much was collected? Answer: 16 funders, $1,765, raised in the last month. And most of these were in just the first week or two, and nothing lately. That's the whole enchilada. Apparently talk is cheap.

Real cheap.
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