Weighing the Price of Distillery Buyouts

I t’s a mean-spirited epithet hurled at 1960s musicians who lend their music to luxury car commercials, art photographers who shoot weddings on the weekend, and craft distillers purchased by big spirits conglomerates: “sellout!” The flurry of small distiller buyouts has certainly caused consternation among some craft whiskey drinkers, but the acquisitions can bring big benefits, according to those who make the deals.

Emotions and loyalties run deep when it comes to what we eat and drink, says Tim Halloran, author of Romancing the Brand . Like discovering a band before it gets famous, drinking relatively unknown whiskies feels special...