In the 1940s, there were about 150 pisco distilleries in this valley.
Now, only 15 remain.
지금은 겨우 15개만이 남았죠.”

On Nov. 24, 2024, Orlando Chelme, a master distiller who has been making pisco in Elqui Valley in northern-central Chile for 40 years, said with a tone of regret.

According to the Chilean Ministry of Agriculture and Forestry, during the peak of pisco in the 1920s, there were a total of over 280 distilleries centered around Elqui Valley and Limari Valley. However, many small distilleries closed their doors following the wave of industrialization in the 1960s and the rapid economic liberalization policies after the 1973 coup. This is similar to the path taken by domestic traditional soju manufacturers.

An Elqui Valley pisco distillation manager gazes at the stopped distiller. /Courtesy of Yoo Jin-Woo

"The pressure to transition to mass production systems, rising prices of materials and supplies, and the abandonment of skill inheritance by younger generations were the main reasons," said Claudia Lopez, a pisco expert from the Coquimbo region in Chile.

Currently, there are about 85 wineries producing pisco across Chile, extending beyond Elqui Valley and Limari Valley. Among them, about 10 have annual revenues exceeding $1 million (approximately 1.5 billion won). Large corporations in Chile are hesitant to enter the pisco market due to profitability concerns. According to the alcohol industry, pisco has an average operating profit margin of around 8%, which is lower compared to beer at 30% and wine at 15-20%.

"The surviving distilleries have instead turned this situation into an opportunity," said an official from the Chilean Alcohol Industry Association. "Rather than mass-producing, they have transitioned to a premium strategy that emphasizes craftsmanship and tradition."

Graphic=Son Min-Kyun

Los Nichos, established in 1868, is the oldest distillery in Chile. Its most notable characteristics are its copper stills that are over 200 years old and its large storage facilities built in natural caves.

"The pisco we make has a unique flavor known as The Smoky Paradox," explained Luis de la Hara Merino, the representative.

This distillery adheres to the traditional method of heating the stills with oak during the distillation process, resulting in a rich smoky aroma. The wine magazine Wine Spectator described in its 2023 review that "initially, the intense smoky aroma fills the nose, but the sweet grape aroma blossoms in the mouth, creating a fascinating reversal."

The annual production is only 120,000 bottles, a small amount compared to the millions of bottles produced by large wineries in Chile. However, the average selling price of this brand of pisco in the United States exceeds $80.

In contrast, Capel in Limari Valley still emphasizes scale. Capel is a cooperative established in 1938, involving over 1,200 grape farms. According to data from the Chilean National Statistics Institute, this company produces 9 million liters of pisco annually, accounting for 25% of Chile's total pisco production.

While Capel is large in scale, it focuses more on sustainable management rather than just increasing production volume. As of 2023, 80% of the total power of the distilleries is supplied by Taeyang solar energy. The packaging that wraps the bottles has also been changed to environmentally friendly methods, reducing annual plastic usage by over 50 tons. The economic media Forbes rated Capel as 'the most eco-friendly alcoholic beverage producer in Latin America.'

At the Chilean Coquimbo pisco distillery 'Capinchas', they package pisco finished goods. /Courtesy of Yoo Jin-Woo

Wacar is a new distillery gaining attention for its bold challenges. Since its establishment, this distillery has practiced a 'zero additive policy' and exclusively uses Muscat single-variety grapes. Using only one grape variety means that the shortcomings of that variety cannot be hidden, but it allows for the full appreciation of the flavor inherent in that particular variety.

Founder Piscero Jimenez said, "Modern consumers value pure and transparent qualities," adding, "expressing the essence of pisco in the purest and most unadulterated way is the challenge we need to tackle." The wine specialty media Wine & Spirit named this brand as one of the top 10 spirits in the world in 2023.

According to data from the International Spirits Competition, Wacar grew by 45% in the U.S. market last year compared to 2023. The brand's flagship product, Wacar Single Vineyard, is known for its clean taste and long-lasting grape flavor. This brand is gaining popularity as a cocktail base in upscale bars in the United States.

The International Spirits Association evaluated in its 2024 spirits trend report that "Chilean pisco is the spirit that best demonstrates a balance between tradition and innovation," noting that "it is achieving development that aligns with the modern consumer's demands for sustainability and transparency while maintaining its centuries-old tradition."