The era of Prohibition, from 1920 to 1933, was a brief but devastating period that essentially shut down the entire legal American liquor industry. While the 18th Amendment and the Volstead Act are long repealed, their effects still ripple through the modern whiskey industry, influencing everything from the number of distilleries we have to the very cocktails we drink.

Lost Expertise and Consolidation

Prohibition didn’t just stop sales; it erased a generation of distillers and traditions.

• The Bottleneck of Survival: When the Volstead Act was enacted, most distilleries were forced to close. Only a select few were granted licenses to bottle spirits for “medicinal use.” This handful of survivors, like those in the area that would become the home of Buffalo Trace Distillery in Frankfort, Kentucky, held the key to the future of American whiskey.

• Loss of Knowledge and Scale: When Repeal finally came, the industry had to start almost from scratch. Generations of yeast strains, unique production techniques, and experienced talent were gone. The handful of surviving companies quickly consolidated power, buying up old brands and assets. This led to a concentration of the whiskey market into a few major players for decades.

• The Race for Speed: With demand high and stocks low after Repeal, the focus shifted to increasing production volume as quickly as possible. Distillers were forced to abandon some of the slower, more traditional methods. For example, some old “jug” yeast strains that lent unique flavor were replaced with faster, commercial strains, arguably leading to a period where flavor innovation took a backseat to volume.

A Shift in Taste and Cocktail Culture

Prohibition fundamentally changed the way Americans drank, with two major, lasting effects on consumer preferences.

• The Cocktail Craze: Bootlegged spirits, often called “rotgut” or “bathtub gin,” were notoriously harsh, foul, or even dangerous. To make these spirits palatable, drinkers and speakeasy bartenders began mixing them with sweet ingredients, fruit juices, and sodas. This necessity birthed the American cocktail culture we love today. Drinks like the Old Fashioned and the Sidecar became popular methods for masking poor quality liquor.

• The Foreign Invasion: With American distilleries largely dormant, Scotch and Canadian whiskies were easily smuggled into the country. These legal, aged spirits, often of higher quality than the local moonshine, flooded the black market and were widely accepted after Repeal. This exposure cemented the popularity of international whiskies in the U.S. market, creating a lasting competition for American bourbon and rye.

• The High Proof Preference: Because illegal alcohol was easier to smuggle and more profitable at high potency, consumers developed a preference for higher proof spirits. This taste preference is still evident today in the popularity of cask strength and bottled-in-bond whiskeys.

A Rigid Regulatory System

Perhaps the most structural and visible effect of Prohibition is the complicated, three-tier system that governs alcohol sales today.

• The Three Tier System: The 21st Amendment, which repealed Prohibition, gave states, not the federal government, the primary authority to regulate alcohol. Most states subsequently implemented the three tier system: Producer (Distiller) Distributor & Retailer. This system was designed to control liquor sales and prevent the resurgence of the saloon, but it remains a barrier to entry for small, craft distilleries and limits the way consumers can purchase products across state lines.

• Dry Counties: The power given to the states also led to the survival of “dry” laws at the county and local level. Though less common today, many towns and counties across the country, particularly in the South, remain fully or partially dry, a direct remnant of the temperance movement’s success. Even today, the sale of whiskey at a distillery like Jack Daniel Distillery in Lynchburg, Tennessee, a famously “dry” county, is heavily restricted.

Ultimately, while the modern whiskey landscape is enjoying a booming revival, every distiller and cocktail enthusiast is still working within a system carved out by the 14 years, as to what was refered to as, of the “Noble Experiment.”

It’s amazing to think that something as short lived as Prohibition still shapes how we drink today. From the classic cocktails that came out of speakeasies to the craft distillers bringing back old traditions, its influence is everywhere. Every sip of whiskey tells a story of creativity, perseverance, and a little bit of rebellion. So the next time you pour a glass, take a moment to appreciate how far we’ve come, and how the spirit of those “dry years” still lives on in every bottle.