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Prohibition in the USA and medicinal whiskey

From 1920 to 1933 the United States carried out one of the boldest social experiments in history: a total ban on the production, sale and transport of alcohol, known as Prohibition. For American whiskey it was a catastrophe - an industry that had flourished almost completely died. And yet whiskey did not vanish entirely, because the law left a fascinating loophole: it could be prescribed as medicine. So medicinal whiskey was born, sold in pharmacies to patients with an appropriate certificate from a doctor. It is one of the strangest chapters in the history of whiskey. Here is a guide to Prohibition: how the ban worked, what medicinal whiskey was, which distilleries survived and how this era crippled the American industry for decades.

What Prohibition was

Prohibition is the period in US history when alcohol was legally banned across the whole country. It was introduced by the 18th Amendment to the Constitution and the Volstead Act, and was in force from 1920 to 1933. The ban covered the production, sale and transport of alcoholic drinks, though possession and drinking themselves were not always punished. The aim was the temperance movement, which blamed alcohol for poverty, violence and the breakdown of families. The effect, however, was different from intended: instead of eradicating alcohol, Prohibition pushed it underground. They were thirteen years that changed America and its relationship with drink. Understanding that Prohibition is a total, nationwide ban on alcohol from 1920 to 1933 is the starting point. It is a great experiment that failed. It is the era that crippled whiskey.

A blow to American whiskey

For American whiskey, Prohibition was an almost mortal blow. Before 1920 the industry flourished - hundreds of distilleries in Kentucky and other states produced bourbon and rye. Overnight the ban cut off their market. Most distilleries were closed, equipment dismantled, and knowledge and traditions lost. Many brands vanished forever, and those that survived barely hung on. Worse, the thirteen-year break destroyed the generational continuity of the craft - when Prohibition was repealed, the industry had to rebuild almost from scratch. That is why American whiskey needed decades to return to its former glory. Understanding that Prohibition almost destroyed American whiskey explains its later weakness. It is a wound that healed over generations. It is the price of a great experiment. We cover bourbon itself more in bourbon explained.

The loophole: whiskey as medicine

Prohibition had, however, a fascinating loophole. The law allowed whiskey for medical purposes - it was believed (or pretended to be believed) that whiskey had healing properties. Doctors could prescribe it to patients, and pharmacies sell it legally. So medicinal whiskey was born. A patient went to a doctor, got a prescription for whiskey supposedly for various ailments, and bought it at the pharmacy like any other medicine. It was a legal crack in a seemingly airtight ban. Understanding that whiskey survived Prohibition as a prescription medicine reveals one of its strangest chapters. It is alcohol in the disguise of medicine. It is a brilliant, if absurd, legal loophole.

A table: Prohibition in brief

Let us gather the key facts:

The table shows the framework of Prohibition: the ban, the medical loophole, the handful of surviving distilleries and the repeal in 1933. It is an era of extremes and workarounds.

The six surviving distilleries

Medicinal whiskey created a narrow, legal market - and only a handful of firms got permission to serve it. At the peak, just six distilleries had a licence to bottle and sell whiskey for medical purposes. They survived Prohibition, while the rest fell. Thanks to this, brands such as Old Grand-Dad and Old Forester survived, sold then as a medicinal drink. These firms controlled the existing stocks of whiskey and could legally sell them to pharmacies. It was a consolidation of the industry to an absurdly small scale. Understanding that only six distilleries survived legally shows how badly Prohibition trimmed whiskey. It is a handful of survivors from a whole army. It is the bottleneck through which American whiskey passed.

Pharmacies and prescriptions

The medicinal whiskey system had its own circulation. A patient got from a doctor a special prescription form for whiskey, strictly rationed - the amount was usually limited, for example one pint every ten days. With the prescription you went to the pharmacy, where whiskey was sold in pharmacy bottles with a label indicating its medical purpose. Pharmacy chains flourished on this trade - a famous example is Walgreens, which during the Prohibition years grew from a dozen or so to hundreds of outlets. Medicinal whiskey was thus a real, profitable business. Understanding that whiskey was sold in pharmacies on formalised prescriptions completes the picture of this peculiar era. It is alcohol in pharmacy garb. It is medicine that cheered.

The underground: smuggling and moonshine

The legal loophole was only a small part of the picture. Most alcohol during Prohibition flowed illegally. Smuggling (bootlegging) flourished, along with illegal bars (speakeasies) and home moonshine - often dangerous, distilled in hiding. Organized crime grew out of the alcohol trade, and gangsters like Al Capone made fortunes. Whiskey was also smuggled from abroad - from Canada (where the Seagram company profited) and Scotland. The chases of moonshine smugglers in fact gave rise to NASCAR racing. Understanding that alongside the legal loophole an enormous underground flourished shows the full picture of the era. It is an America of cat and mouse with the law. It is a ban that created empires of crime.

The legacy of Prohibition

Prohibition was repealed in 1933 by the 21st Amendment to the Constitution - the only one that repealed another amendment. But the damage was deep and lasting. American whiskey lost its continuity, its base and a generation of craftsmen. Many distilleries never returned, and the industry rebuilt painfully over decades, further held back by the Great Depression and the war. Only at the end of the twentieth century did bourbon and rye regain their former glory and worldwide recognition. Prohibition remained a warning about how a ban can harm what it was meant to heal. Understanding that the legacy of Prohibition is decades of whiskey’s weakness rounds out this story. It is a scar on the American drink. It is a lesson in unintended consequences. We cover the turbulent history of whisky more in the history of Scotch whisky.

The impact on cocktail culture

Prohibition left its mark not only on the industry but also on drinking culture. In the illegal bars (speakeasies), alcohol of poor quality was served - smuggled or home-distilled, often harsh and unpleasant. To hide it, it was mixed with juices, syrups and liqueurs, which drove the development of cocktails. Paradoxically, the ban thus contributed to the flowering of the art of bartending. What is more, many American bartenders emigrated - to Europe and Cuba - taking their knowledge with them and creating a golden age of cocktails outside the USA (hence the Cuban Daiquiri and the bars of Paris). After Prohibition was repealed, this culture returned to America. Understanding that Prohibition shaped the world of cocktails adds an unexpected dimension to its history. It is a ban that unwittingly advanced bartending. It is another paradox of this era.

The essentials in brief

Let us gather it up. Prohibition is the total ban on alcohol in the USA from 1920 to 1933 (the 18th Amendment, the Volstead Act). For American whiskey it was an almost mortal blow - most distilleries were closed. Whiskey survived thanks to a loophole: it could be prescribed as medicine (medicinal whiskey), sold in pharmacies on strictly rationed prescriptions (e.g. a pint every ten days). Only six distilleries got a licence for this trade, saving brands like Old Forester. Alongside the legal loophole an enormous underground flourished: smuggling, speakeasies, moonshine and organized crime. Prohibition was repealed in 1933, but it crippled American whiskey for decades. Now you know one of the strangest chapters in its history.

Note every American whiskey in GustoNote - including its history and character. In time you will appreciate how much the industry went through before bourbon and rye returned to the top.