Colorado whiskey distilleries applauded the recent proposal by the Alcohol and Tobacco Tax Trade Bureau to create an official “American Single Malt” designation.

It’s an important milestone for the growing whiskey industry not only in Colorado, but nationwide, as it will join officially recognized spirit classes like Irish whiskey, scotch and bourbon.

So just like consumers can focus in on single-malt scotch – which must meet regulation standards to call itself that – they might soon be able to identify true American single-malt whiskeys.

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“It’s something we’re really excited about as a small craft producer,” said Zach Thomas, who owns Centennial’s Downslope Distillery with his sister Katie Thomas and co-founder Mitch Abate. “We currently follow all those rules anyway.”

The rules to qualify as an American Single Malt whiskey are as follows:

• Made from 100% malted barley
• Distilled entirely at one distillery
• Mashed, distilled and matured in the United States of America
• Matured in oak casks of a capacity not exceeding 700 liters
• Distilled to no more than 160 (U.S.) proof (80% alcohol by volume)
• Bottled at 80 (U.S.) proof or more (40% alcohol by volume)

The Bureau, TTB for short, is currently in the public comment phase of the process to “set forth the standards to identify distilled spirits,” according to its website.

TBB officials said the proposal came after years of industry lobbying, mostly by the American Single Malt Whiskey Commission.

“The TTB’s American Single Malt definition will ultimately protect, educate, promote, and grow the category,” said commission President Steve Hawley in a release. “With dedicated producers like Stranahan’s working as part of our collective, we’re able to certify a future where consumers are well-informed about the American Single Malt category and distilleries can build their brands and craft excellent whiskey.”

Denver-based Stranahan’s has become “the largest American single malt producer in the U.S.,” said Owen Martin, head distiller.

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“A really small craft producer is probably just going to enjoy the legitimacy that it would give a category,” Martin said. “For example, I’ve heard Total Wine is already potentially gearing up to have an American Single Malt section next to the bourbon section, next to the scotch section. So for some small place like that, it makes a huge difference.”

For larger distillers who have been around longer – Stranahan’s has produced whiskey for 20 years now – “that legitimacy aspect allows us to be seen and to play in the same spaces as bourbon and scotch that have been around for hundreds and hundreds of years. … it’s the first step to being seen as equal,” Martin said.

Currently, malt whiskey has been defined as 51% or more malted barley and any other grains can be mixed in.

“There’s no where else in the world that has that in their single-malt definition,” Martin said. “So we’re not proposing to do away with the malt whiskey designation, but to add a further one called single malt.”

Thomas used the example of bourbon producers. There are some 300 brands out there, but a majority of those are produced by about a dozen or so distillers.

“There’s a misconception of choice in the marketplace. With this new definition, those have to come from that distillery to bear the American Single Malt label. For the consumer and producer, this is good for everyone,” said Thomas. “With that label comes the knowledge of where that single-malt whiskey is from.”

It would also prevent some producers from misleading labels of what’s in the bottle when they, for example, just toss oak chips into a metal vat of distilling whiskey.

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Downslope produces about 5,000-6,000 bottles per year. Martin would not disclose how much whiskey Stranahan’s produces.

Martin said he hopes the new designation will result in “regionality” among American distilleries, much like Scotland has highlands or lowlands whisky (scotch whisky is spelled without the “e”).

“We talking Colorado style, or Pacific Northwest style,” he said. “We see this as kind of bridging the gap between American regulations and European regulations and trying to take the best of both worlds. It gives the producer the most ability and creativity, while still being legitimate single malt.

“I believe we can go toe-to-toe with these entrenched industries to show what kind of stuff the new guys on the block have to offer.”