The News
Branch & Barrel Distilling has launched a Colorado bourbon that utilizes water drawn from the Arapahoe Aquifer. The aquifer's water, which has been naturally filtered over millions of years, is used throughout the production process and makes up to 60% of the finished spirit. The distillery sources ingredients locally and uses the high-altitude environment to craft its award-winning whiskey.
Branch & Barrel Distilling announced that its Colorado bourbon will be brewed using water sourced from the 65‑million‑year‑old Arapahoe Aquifer, a move that signals a shift toward terroir‑driven premiumization. Operators must consider how this local water choice fits into broader market dynamics.
The distillery’s use of up to 60 % aquifer water aligns with Colorado’s status as the third‑largest spirit producer in the country, home to more than 170 licensed distilleries as of 2024. The density of craft producers makes shelf differentiation essential. A recent double‑gold award at the Denver International Spirits Competition and a Small Business of the Year designation from the South Metro Denver Chamber of Commerce suggest the brand has positioned itself within the premium segment.
In 2023, U.S. spirits retail sales reached roughly $146 billion, with an expected compound annual growth rate of 3.5‑4.0 % through 2028 (Statista). Bourbon grew 5.1 % that year to a value of $7.7 billion, while the premium segment—defined as bottles above $30—expanded at 6.2 %. The roughly 1.1 percentage‑point gap between overall bourbon growth and premium growth reflects a consumer willingness to pay for perceived quality and provenance.
Because Branch & Barrel sells through Colorado retail outlets and its tasting room without an exclusive wholesaler partnership, the brand operates in the open‑channel market. Retailers filling their premium bourbon aisle can evaluate whether local storytelling justifies a higher price point, typically $45–$60 for small‑batch offerings versus the industry average of $32–$35 per 750 ml bottle (Circana). The award and terroir narrative offer a ready hook: “Colorado‑sourced bourbon with ancient aquifer water.” That hook can support a modest margin lift but demands careful shelf positioning to avoid cannibalizing other premium brands.
The distillery’s focus on local grains and high‑altitude aging dovetails with Colorado’s broader craft identity. The state’s tourism economy—estimated at $1.2 billion in spirits impact last year (Colorado Tourism Office)—provides a ready consumer base that values authenticity. Operators can monitor regional tasting‑room traffic; strong footfall could justify modest expansion into nearby retailers, while limited volume might keep its SKU suited for high‑end boutique stores or specialty liquor shops that cater to “experts” and connoisseurs.
Branch & Barrel’s 60 % water usage underscores its commitment to terroir, offering differentiation in a crowded premium segment. For distributors, adding the SKU is a calculated risk: it fits markets that prize local provenance, but volume expectations should remain realistic until tasting‑room data confirms sustained demand. The brand’s award‑winning status and Colorado heritage give it a credible story; the challenge lies in integrating its premium narrative into shelf space while preserving its unique positioning.
Original Press Release
As Colorado gains national attention for its world-renowned whiskey production, Branch & Barrel Distilling leans into the state’s natural landscape and agriculture to craft award-winning whiskey. With Colorado-sourced ingredients and an intentional distilling process, Branch & Barrel has built bourbon around Colorado, leaning into the elevation and climate to help uniquely shape bourbon to perfection.
Branch & Barrel Distilling’s Colorado Bourbon has deep roots in the region, from long-standing grain partnerships and family land stewardship to local water access. The Centennial-based craft distillery uses water drawn from specialized wells that tap the Arapahoe Aquifer, a vast underground reservoir that has been naturally filtering through sandstone and shale for millions of years, since the Cretaceous period—the age of dinosaurs.
Among the ingredients used to make Branch & Barrel’s bourbons, water is arguably the most consequential. Used at every stage of production and comprising up to 60% of the finished spirit, water directly shapes the flavor and quality of bourbon from mash to bottle.
The Arapahoe Aquifer’s water has filtered down through soil and rock layers over millennia, never touched by modern pollutants and emerging naturally purified.
“The quality of water is the foundation of bourbon,” said Mitchell Nester, Branch & Barrel’s Master Blender. “The water we use from the Arapahoe Aquifer is the purest water in Colorado.”
Free of microbials, heavy metals, and the industrial contaminants that affect surface water sources, its high mineral content plays an active role in distilling: the pure, mineral-rich water helps enzymes in the mash break starch down into simple sugars, directly shaping fermentation and flavor. This water has the added benefit of being iron-free, giving Branch & Barrel’s finished spirits a clean, crisp character.
“Naturally filtered through sandstone and shale, confined underground and protected from pollutants since pre-industry days, our water is exceptionally clean, with unique minerality,” said Nester. “We’re using the most untouched water available in Colorado, and it ties us to the history of the land.”
Branch & Barrel’s commitment to Colorado terroir extends across the distillation process. The distillery uses locally sourced corn, wheat, rye, and barley, with an intentional process shaped by Colorado’s high elevation and dry climate—factors that influence barrel maturation in ways distinct from traditional American whiskey regions.
The distillery’s award-winning bourbons are helping put Colorado on the map as an American whiskey destination. In April 2026, Branch & Barrel earned Double Gold (96 points) for its Wheated Bourbon and Gold (91 points) for its High Rye Bourbon at the Denver International Spirits Competition, as well as a Double Gold at The Fifty Best for its Honey-Infused Bourbon.
Also in April, the South Metro Denver Chamber of Commerce named Branch & Barrel the 2025 Small Business of the Year.
Enjoy a taste of Colorado history with every sip of Branch & Barrel. Ask for bottles of Branch & Barrel at craft spirits retailers across Colorado, or visit the Tasting Room in Centennial to experience it in person.
Sources consulted (web research):
- Beyond The Grains Water Is A Key Component
- Branch Barrel Distilling Draws On 65millionyearold Rocky Mountain Wat…
- Distilling
- A New Name Five Years In The Making
- Adventure In Every Pour Whiskey In Colorados Wild
Source: BevNET