Jack Daniel's

Lowering to 80 proof

Until 1987, Jack Daniel's black label was historically produced at 90 U.S. proof (45% alcohol by volume). The lower-end green label product was 80 proof. However, starting in 1987, the other label variations also were reduced in proof. This began with black label being initially reduced to 86 proof. Both the black and green label expressions are made from the same ingredients; the difference is determined by professional tasters, who decide which of the batches would be sold under the "premium" black label, with the rest being sold as "standard" green label.

A further dilution began in 2002 when all generally available Jack Daniel's products were reduced to 80 proof, thus further lowering production costs and excise taxes. This reduction in alcohol content, which was done without any announcement, publicity or change of logo or packaging, was noticed and condemned by Modern Drunkard, and the magazine formed a petition drive for drinkers who disagreed with the change. The company countered that it believed consumers preferred lower-proof products, and said that the change had not hurt the sales of the brand. The petition effort garnered some publicity and collected more than 13,000 signatures, but the company held firm with its decision. A few years later, Advertising Age said in 2005 that "virtually no one noticed" the change, and confirmed that sales of the brand had actually increased since the dilution began.

Jack Daniel's has also produced higher-proof special releases and premium-brand expressions at times. A one-time limited run of 96 proof, the highest proof Jack Daniel's had ever bottled at that time, was bottled for the 1996 Tennessee Bicentennial in a decorative bicentennial bottle. The distillery debuted its 94 proof "Jack Daniel's Single Barrel" in February 1997. The Silver Select Single Barrel was formerly the company's highest proof at 100, but is available only in duty-free shops. Now, there are 'single barrel barrel proof' editions, ranging from 125 to 140 proof.

Sales and brand value status

Jack Daniel's Black Label Tennessee Whiskey is the best-selling whiskey in the world and remains the flagship product of Brown–Forman Corporation. In 2017 the product had sales of 12.9 million cases. Underlying net sales for the Jack Daniel's brand grew by 3% (−1% on a reported basis). Other brand variations, such as Tennessee Honey, Gentleman Jack, and Tennessee Fire, added another 2.9 million cases to sales. Sales of an additional 800,000 equivalent cases in ready to drink (RTD) products brought the fiscal year total to more than 16.1 million equivalent adjusted cases for the entire Jack Daniel's family of brands.

Tennessee Honey and Tennessee Fire were also solid contributors to the total underlying net sales growth of 3% (flat on a reported basis) for the Jack Daniel's family of brands. They grew underlying net sales by 4% and 14% (3% and 18% on a reported basis), respectively. Premium brand Gentleman Jack grew underlying net sales mid-single digits, while the RTD/RTP segment increased underlying net sales by 6% (3% on a reported basis).

In the IWSR 2013 World Class Brands rankings of wine and spirits brands, Jack Daniel's was ranked third on the global level. More recently, in 2017, it ranked at number 16 on the IWSR's Real 100 Spirits Brands Worldwide list. Additionally, the brand evaluation consultancy Intangible Business ranked Jack Daniel's fourth on its Power 100 Spirits and Wine list in both 2014 and 2015.

Sponsorships

From 2006 until 2015, Jack Daniel's sponsored V8 Supercar teams Perkins Engineering and Kelly Racing. Jack Daniel's also sponsored the Richard Childress Racing 07 car (numbered after the "Old No. 7") in the NASCAR Sprint Cup Series from 2005 to 2009, beginning with driver Dave Blaney and soon moving to Clint Bowyer. Jack Daniel's also sponsors Zac Brown Band's tours.

In September 2022, Jack Daniel's signed a multi-year partnership deal with McLaren starting from the 2023 season onwards. As part of the partnership, Jack Daniel's released a McLaren Racing limited edition of the Old No. 7 which paid tribute to the founders of both companies – Jack Daniel and Bruce McLaren. For the 2023 Las Vegas Grand Prix, McLaren raced a special Jack Daniel's branded livery with a Jack Daniel's collage highlighted across both cars' rear sidepod and engine cover.

The mash for Jack Daniel's is composed of 80% corn, 12% rye, and 8% malted barley, and is distilled in copper stills. It is then filtered through 10-foot (3 m) stacks of sugar maple charcoal. The company refers to this filtering step as "mellowing". This extra step, known as the Lincoln County Process, removes impurities and the taste of corn. The company argues this extra step makes the product different from bourbon. However, Tennessee whiskey is required to be "a straight Bourbon Whiskey" under terms of the North American Free Trade Agreement and Canadian law. A distinctive aspect of the filtering process is that the Jack Daniel's brand grinds its charcoal before using it for filtering. After the filtering, the whiskey is stored in newly handcrafted oak barrels, which give the whiskey its color and most of its flavor.

The product label mentions that it is a "sour mash" whiskey, which means that when the mash is prepared, some of the wet solids from a previously used batch are mixed in to help make the fermentation process operate more consistently. This is common practice in American whiskey production. (As of 2005, all straight bourbon is produced using the sour mash process.)

Prior to 2014, the company's barrels were produced by Brown-Forman in Louisville, Kentucky. That year, the company opened a new cooperage in Trinity, Alabama.

Legal status

On a state level, Tennessee has imposed stringent requirements. To be labeled as Tennessee whiskey, it is not enough under state law that the whiskey be produced in Tennessee; it must meet quality and production standards. These are the same standards used by Jack Daniel's Distillery, and some other distillers are displeased with the requirements being enshrined into law.

On May 13, 2013, Tennessee Governor Bill Haslam signed House Bill 1084, requiring the Lincoln County process to be used for products produced in the state labeling themselves as "Tennessee Whiskey", with a particular exception tailored to exempt Benjamin Prichard's, and including the existing requirements for bourbon. As federal law requires statements of origin on labels to be accurate, the Tennessee law effectively gives a firm definition to Tennessee whiskey, requiring Tennessee origin, maple charcoal filtering by the Lincoln County process prior to aging, and the basic requirements of bourbon (at least 51% corn, new oak barrels, charring of the barrels, and limits on alcohol by volume concentration for distillation, aging, and bottling).

In 2014 legislation was introduced in the Tennessee legislature that would modify the 2013 law to allow the reuse of oak barrels in the Tennessee whiskey aging process. Jack Daniel's Master Distiller Jeff Arnett vehemently opposed the legislation, arguing the reuse of barrels would require the use of artificial colorings and flavorings, and would render Tennessee whiskey an inferior product to Scotch and bourbon.

The company was the subject of a proposal to locally surtax its product in 2011. It was claimed that the distillery, the main employer in a company town, had capitalized on the bucolic image of Lynchburg, Tennessee, and it ought to pay a tax of $10 per barrel. The company responded that such a tax is a confiscatory imposition penalizing it for the success of the enterprise. The proposed tax faced a vote by the Metro Lynchburg-Moore County Council and was defeated 10–5.

Moore County, where the Jack Daniel's distillery is located, is one of the state's many dry counties. While it is legal to distill the product within the county, it is illegal to purchase it there. However, a state law has provided one exception: a distillery may sell one commemorative product at a time, regardless of county statutes.