The rise, fall, and succession of Van Winkle Whiskey - an American Business Story.

Sep 1

You’ve heard of rags to riches and shirtsleeves to shirtsleeves, but rarely do you hear about a grandfather who built a business, a son who had to give it up to keep the family together, and a grandson picking up the pieces to keep the legacy alive.

This is the story of the legendary Van Winkle bourbon producers, and it runs parallel to many small family businesses that struggle to pass the baton through succeeding generations.

Pappy Van Winkle (the grandfather) dedicated his life to creating some the world’s best whiskey - more specifically bourbon. But even at his peak, he only owned 51% of the business. When Pappy died, his interest became further subdivided between his two children, Julian Jr. and Mary.

Julian Jr. (the son) wanted to continue the business, but he was forced to sell as bourbon sales fell, profits shrank, and the other 49% owner convinced his sister, Mary, that selling was the right thing to do.

It’s possible that Julian Jr. could have held out for a miracle, but eventually he decided it wasn’t worth straining the relationship with his sister any longer and so he went along with the sale.

Determined to keep his fathers legacy alive, the son began a new distillery using what remained of his inheritance, but the economics still proved challenging. Eventually the stress got to him and he died of cancer in 1981.

But Julian III (the grandson) proved to be just as determined as his father. Born with the same palate as his grandfather, Julian III had an innate gift for recreating the best bourbon in America (the 23 year old family reserve currently sells for about $5,000 to $6,000 per bottle).

It wasn’t easy - Allegedly, Julian III had to gone at least a million dollars in debt trying to revive the brand. It became clear was willing to go down with the ship if needed. Fortunately, with the help of many old friends (and some new ones) he was able to find his footing and claim the title of #1 rated bourbon whiskey in the world.

It’s easy to talk about these things in hindsight, but nowadays most small family businesses face similar struggles. A family divided by the success of their parents or grandparents.

An estate plan isn’t guaranteed to avoid all your family succession problems, but it’s the best bet you have to avoiding conflict down the road.

Whether you have a business, some rental properties, or a family home, proper instructions can give your family the direction they need when you’re gone while giving your peace of mind in the meantime.