The Molson's brewery is one of the oldest manufacturing enterprises in Canada and dates back to the eighteenth century. In 1786, a young Englishman named John Molson arrived in the New World with little money, some barley and hops, a few pieces of equipment, and the desire to create a successful brewing trade in the prospering town of Montreal. This was the beginning of a now world famous brewing company. John believed that beer would gain popularity in the New World and he hoped that beer might someday be more popular than ardent spirits in the lower classes thereby improving the character of society. Molson's brewing enterprise has stood the test of time. It has continued to grow, change and expand through the generations.

Today when we hear the word 'Molson' we automatically think of beer (and maybe the advertising slogan "I Am Canadian"). Would you associate Molson with whiskey? Well, Miss Whiskey is here to educate you on a little known Canadian fact, Molson's was Canada's foremost spirit manufacturer until the 1860s. In fact, the primary business enterprise for the company during much of its formative years was distilling not brewing. Brewing was occurring in this time period, but it was in low production throughout these years. The production of spirits and whiskey was the backbone of the Molson brewing legacy; in 1863, the beginnings of the massive brewing empire we recognize today was just beginning to emerge. What would have happened had the circumstances been different? Canadians might instead be drinking Molson's whiskey today! Let's time travel back to the beginning of the Molson story and examine this great distilling legacy.

The first sign of a distillery on the Molson's property was in 1801 when John Molson [father of a great Canadian beer] purchased a copper still in L'Assomption, Quebec to be moved to his property in Montreal located in the Montreal Harbour at the foot of St. Mary's Current. Company records also show the purchases and sales of rum, molasses, high wines and whiskey suggesting evidence of some distilling at this time. To accommodate the new still John built a small still house. However, in less than three years, it was demolished for the more important construction of a larger stable. Clearly, during these early years, distilling was not a priority and John was merely dabbling in the new trade. John's focus was ensuring the stability and future success of the brewing premises. There are no mentions of distilling on the Molson's property again until 1811 when John purchased a larger copper still (built in England) and installed the apparatus in a new distilling area; it was hardly used until 1848.

We can credit Thomas Molson (John's son) with the success of the Molson distillery. Thomas had a passion for distilling and selling spirits and whiskey. Thomas had to persuade his brothers and father to take a gamble in this new trade of distilling, an enterprise they were unsure of. Thomas saw the timing as perfect for entering the trade because profits of flour exports had declined and there was a grain surplus at many of the grist mills in Lower Canada. By turning grain into spirits, the grain would not be wasted; instead, it was transformed into a storable product that could be transported. There was also a new demand for whiskey in England. The Napoleonic Wars would end in 1815 and with the favourable British colonial preference laws, whiskey could be transported over seas to help satisfy this new demand. The profitability intrigued John Molson enough to take a chance and enter into the distilling trade once again. Evidently, economic factors drove the Molson's back into the distilling trade, but merely as a "branch" business of the brewing enterprise.

Distilling commenced and exports were shipped to England but it was soon realized that Canadian high wines would have little impact on the English market. John and his English agents believed that the financial return for their efforts was disappointing. John began to question the profitability of this venture because all other areas of the business were booming and the original advice of Thomas seemed misguided. John urged Thomas to abandon the idea of distilling. The Molson Company wanted to focus on brewing, a venture in which there was a strong local demand to satisfy. Thomas refused to give up on distilling, resulting in a falling-out between him and his family. In later years, his family would see that Thomas was simply ahead of his time.

With other ideas in mind, Thomas bought out of the family business. He was determined to prove that distilling would be a lucrative business in this New World. Willing to take on the challenge alone, Thomas left for England in 1823 to learn more about the trade. Upon his return, he began a distilling business in Upper Canada on the shores of Lake Ontario in a town referred to as the immigration gateway. By 1831, Thomas had a 5-acre property in Kingston that included dwellings, stables, equipment imported from England, a brewery, and distillery. The "Kingston Adventure" began and in January of 1832, he was operating a still producing over 900 gallons and the following year his distillery produced 5,138 gallons of spirits. A great feat considering the fact that commercial distillery had barely begun in Upper Canada. The industry at this time was dominated by small local distilleries and many were additions to grist milling operations. In this short amount of time, Thomas has acquired 18% of Upper Canada's still capacity.

In less than 10 years, Thomas had created a profitable distilling business in Upper Canada. The opposite was true for the Molson family - there were problems in their brewing trade. His brothers John and William had witnessed steady growth in the beverage industries since their partnership in 1828 and the competition in the marketplace was growing. The 1831 census shows the number of distilleries had doubled in less than five years and in the local area of Montreal, there were now 56 distilleries. The Molson's brewing enterprise seems to have been touched little by this new competition due to their strong presence and loyal clients in the market. The problem was a lack of commitment to the business because John Sr. and Jr. were involved in other projects that required large amounts of their time. William was left with sole responsibility of the brewing enterprise but he had little brewing experience. The family needed Thomas because he understood the trade. In 1833, a depression loomed. When the pressure was finally felt in Montreal, Thomas' father sent for him.

Thomas left Kingston in September of 1834 and his Upper Canadian distilling adventure was over. He placed the distillery up for sale and went back to help his family. In February of 1835, a new partnership was formed between Thomas and his brother William. John Molson died the following year and the brewing legacy fell on the shoulders of his youngest two sons. By now, Thomas had many years of experience in the distilling trade in both Upper Canada and Lower Canada. Distilling was different between Upper and Lower Canada. In Lower Canada businesses had access to the sea, there was a larger population, and there was a population of wealthy families. Thomas began the distilling business again on the Molson brewing property but it was decided that this would be a separate aspect of the brewing business even though the distillery would be run on the Molson brewing property. Funds from the brewing would go to help finance the growth of the distillery. Thomas set out on some research trips to acquire more knowledge on the distilling trade. We must remember that in these early years of distilling in the New World it was very difficult to acquire knowledge on the process of distilling and how to do so effectively and efficiently. There was much experimentation with formulas and methods as well as trips to other successful distilleries in the New World (mainly the United States) and in England, where the trade originated and where the new technology was emerging. Thomas wanted to ensure that this time, distilling on the Molson property would be a profitable success.

A new wooden still replaced the earlier pot still that had remained on the property; it had a capacity of about 700 gallons. A copper rectifying apparatus was also installed. Rectified spirits were casked immediately then deemed ready for sale and shipment. It has been speculated that the capacity of the distillery was 60,000 gallons a year in the early 1830s. The new venture in distilling was just beginning and the Molson's were confronted with a set-back. On January 5, 1838 a fire started in the distillery. The fire was confined to the distillery, but there was wide-spread damage. Much of the distilling operation was lost including the newly acquired equipment and apparatus for the beginnings of the business. The Molson's were ready to rebuild immediately but encountered problems with construction and importing new machinery. There were months of inactivity. Thomas and William decided to take this opportunity as a learning experience and formed a new partnership where they would conduct business as brewers and distillers. Thomas & William Molson & Co. would divide profits, losses, liabilities, and expenses. The distillery remained out of production from January to October of 1838 and then according to company records, the grain purchasing resumed and the year recorded a production of 140,000 gallons.

New distilling methods were quickly becoming available, including continuous distilling that would generate a factory production flow of spirits and the ability to reach large production rates. The Molson Company did not engage in the new machinery. Considering the revolution that would begin in the industry it is surprising that they did not acquire this new machinery and take a strangle hold of the infant distilling industry. It was likely a business decision by Thomas, a decision to continue with their traditional methods that they had developed and could rely on. (By the 1860s, their method was on the verge of being outdated.) In 1839, the Molson distillery was the largest distilling operation in Canada and remained as such for the next twenty years. In 1839 production was estimated at 150,000 (proof*) gallons which is astonishing when compared to the largest distilling operation in Upper Canada, the Gooderham & Worts distillery in Toronto which had an output of 28,234 (under-proof**) gallons in 1840. The output of the distillery continues to increase with a total of 175,000 gallons in 1843 and 250,000 gallons by 1845. Their distilling methods may have been wasteful but they grossed considerably more than the sale of ale or beer had totalled in the brewery in its previous 50 year history. In the matter of a few short years, the Molson distillery managed to shoot to the top of this infant Canadian industry because they had a huge advantage over their smaller competitors, an advantage of capital, experience and a reputation in Lower Canada, especially Montreal.

In the 1840s, commercial distilling in Upper and Lower Canada was limited and we do not see an explosion in commercial distilling until the late 1850s. There were few large-scale spirit producers in Canada. This allowed the market leaders to engage in price fixing. This is demonstrated in company correspondence records between Handyside Bros. and William Dow in Montreal, James Morton in Kingston (running Thomas' old distillery), and Gooderham & Worts in Toronto. The Molson's believed in price fixing as a key formula to profits and success in this infant distilling industry. It protected their investment in the trade and the integrity of distilling. The company also developed a well-organized network of local agents to distribute their products in the larger towns in Lower Canada and even expanded their reach into Upper Canada. Much of their profits were returned to the business to ensure continued success and growth in the industry over its competitors. This meant that improvements and expansion were a regular business activity on the property including the acquisition of the nearby distilling operations of Handyside Bros. due to bankruptcy.

By 1846, there was evidence of a new trend appearing at the Molson distillery - a decline in production. The production for 1846 was 185,000 gallons and the following year it had dropped to 152,000 and again in 1848 to 145,000. By 1851, the production at the distillery was the lowest seen since 1838. There was a slowdown in production at the brewery too, but it was not as serious a decline. Records suggest deflation in the economy, a decline in export sales, colonial preference for items like lumber, wheat, and flour, steeper excise taxes and the Annexation Manifesto of 1849 (the dissolution of the old mercantile system which led to many individuals assuming that the Molson loyalty was to the old system because their commercial strength had been built on the system) - All were factors in the decline.

Around this time, William had decided that he wanted out of the partnership to pursue another business interest, banking. In 1853, the ownership of the brewing and distilling enterprise was passed to the middle branch of the family. Thomas formed a new partnership with his son John Henry Robinson and then again with his second son William Markland in 1859. The company remained as Thomas & William Molson & Co. from 1859 to 1861. There was a continuing conflict between Thomas and John H.R., in 1852 Thomas had written to William Markland stating "I shall carry on the Brewing and Distilling, making Brandy, Gin & C on the Distilling Premises and John H.R. may do as he pleases as I can not agree with him..." Thomas felt betrayed by his son's disrespect for his beliefs. Thomas and his brother William had begun the distilling venture, as pioneers in a new industry where everything was new and techniques and formulas needed to be determined and mastered. His sons were entering the business in a new generation and the trade had changed greatly. To them, the venture was more about renewing and improving. They were on the eve of industrial prosperity and the industrial revolution would drastically alter the nature of commercial distilling in Canada. The trade was becoming organized, they were beginning to understand the market, and firm price agreements between the large competitors were necessary. The distilling industry in Canada was on the verge of massive consolidation whereas the brewing industry was taking the opposite turn to that of expansion. It has been identified that between 1853 and 1863 there was a 100% increase in the number of breweries in Lower Canada. Montreal was booming. There was an increased demand for beer in Montreal due to the influx of English immigrants. Molson's was not a part of this expansion. The brewery was considered to be less important than the distillery.

John HR wanted to jump in to this booming industry - beer was hot. A large fire destroyed the interior of the brewery in July of 1858 and the rebuilding is credited to John HR who undertook the responsibility to ensure renovations were completed as quickly as possible. Under John's management, the brewery produced 200,000 gallons in 1859, a total more than the previous 72 year history. Thomas had always felt betrayed by his son who did not share his vision in distilling and problems had continued to mount between the two. "I take to my distillery from last June 1853 and you your brewery." He continued with the distilling in absence of his sons. Thomas retired in 1861 and a new partnership was formed - John HR Molson & Bros. Thomas had retained ownership of the distillery and had agreed to lease it to his sons starting with $4,000 a year for the first two years after which they would renegotiate the contract. Only 18 months into his retirement, Thomas came down with apoplexy and died February 22, 1863. He willed his son John Thomas with the Molson Distillery.

The Molson Distillery was being surpassed by distilleries in Upper Canada that had employed the continuous distillation method. In 1861, Hiram Walker & Sons (located near Windsor) were producing 400,000 gallons and Gooderham & Worts (located in Toronto) had taken leadership as the largest distilling operation in Canada with 1.25 million gallons of spirits in production. (It was the dawn of a new era; Canada's whiskey region was being formed in Upper Canada.) The Molson distilleries were producing more than 300,000 gallons of spirits according to a July 31st, 1863 summary of Montreal spirit production when compared to their next local competitor Messrs. Dow & Co. at 204,507 gallons. In terms of brewing in 1863, Molson's produced about 142,140 gallons whereas Messrs. Dow & Co. was on top with 753,411 gallons. By 1864 this brewing production had jumped to 260,000, and jumped again to 310,000 the following year. Their production was 720,000 gallons by 1867. A remarkable increase that was almost curtailed in 1862 when a contaminated batch cost the company thousands of gallons of beer. Some of this contaminated batch was even distributed to the public who complained of the bitter taste. They were forced to dump the batch, thoroughly clean the equipment and start over, but their reputation had been sullied. Throughout Montreal in 1862 the beer from Molson's was coined as the beer with the "Molson twang".

Unexpectedly in 1863, Molson's suddenly quit the distilling business and all existing stock was disposed of as fast as the market would take it. As mentioned previously, sales were on a steady decline. It is apparent from Molson records that there was no real interest by the family in distilling. Excise changes were forced upon Canadian distillers at this time forcing the dissolution of the old price agreements. Molson businessmen were firm believers in this price fixing and with the steady increase in these taxes from an increase of 30 cents per gallon from 1862 to 1864 to 60 cents a gallon in 1867; it seems the company believed that there was no more honest money to be had in the distilling business. When looking at brewing we see a booming industry of expansion. John Thomas Molson retired and liquidated the distilling assets his father had left him. This decision is likely because of a family tragedy, the death of his wife in childbirth, influenced his decision to liquidate and leave Montreal for an extended trip.

This simple decision was the end the Molson distilling legacy. The end of a saga that had been operating for more than 50 years. Profits made from the distillery had helped to stabilize and sustain the Molson property in Montreal at a time when no immediate family member had time for the brewing business. John Molson & Sons and the company's successor Thomas & William Molson & Company remained as Canada's largest distillers for nearly 40 years (1820 - 1859). Thomas Molson had forged ground in an infant industry and proved that distilling in Upper and Lower Canada was a viable and profitable industry. The foundation for the Molson brewing empire was funded by distilling profits. Imagine if a family member showed the same passion Thomas did for distilling and the making of Canadian whiskey, we could all be sampling Molson's Canadian Whiskey today. As it stands, Canada's distilling legacy moved from Lower Canada to Upper Canada and the Canada's whiskey region was formed in what we know today as Southern Ontario. Molson's continued in brewing, and is now a global corporation.

* Proof - is an adopted standard used in determining the alcoholic strength of a liquid. In Canada the mixture must be 57% alcohol and 43% water.
** Underproof - is below the standard proof (assuming this is 100%). For example, 30 U.P. or 30 degrees underproof is equal to 70% proof spirit.

References:

Merrill Denison, "The Barley and the Stream: The Molson Story," Toronto, Ontario: McClelland & Stewart Ltd., 1955.

Tanya MacKinnon, "The History Geography of the Distilling Industry in Ontario: 1850-1900," MA Thesis, Wilfrid Laurier University, 2000.

Karen Molson, "The Molson's: Their Lives & Times 1780-2000," Willowdale, Ontario: Firefly Books Ltd., 2001.