Over the years, I've had the opportunity to meet and listen to many leaders across industries–healthcare, manufacturing, tech, and more. But two of the most memorable “leadership conversations” I've experienced came not in a boardroom or a strategy session, but around Bourbon–specifically with Fred Noe, the seventh-generation master distiller at Jim Beam.
The first was during a quarterly tour at the Clermont, Kentucky campus. Fred and his son, Freddie, hosted a small group for lunch, a distillery walk-through, and what turned into a good old-fashioned storytelling session. No slides. No script. Just Fred–funny, sharp, reflective–sharing stories about Bourbon, business, and the bumps along the way.
The second time was more recent: at a meeting of the Original Greater Cincinnati Bourbon Society. It was a packed room, but Fred made it feel personal. Once again, he spoke candidly about mistakes, experiments, and learning from what doesn't go right the first (or third) time.
Fred might be best known for making great Bourbon, but what struck me most both times was how naturally he spoke about leadership. He might not use terms like “PDSA cycle,” “psychological safety,” or “Kaizen,” but he seems to live those principles every day–and so does his team.
This piece is about what we can all learn from that mindset. About how small-batch thinking creates big-scale success. About how legacy and learning go hand in hand. And about why sometimes, you start testing new product experiments with a new 4,000-gallon fermenter… before you bet on trying an old 40,000-gallon fermenter.
Smaller Fermenters, Bigger Learning
Innovation can feel risky–especially in an industry where your product takes years to mature. If something goes wrong, you might not know until it's been aging in a barrel for over a decade.
That's why Fred and his team have embraced a smarter way to learn: by starting small, quite literally, with the equipment they use.
“It's easier to make mistakes at 4,000 gallons than at 40,000,” Fred said, referring to the fermenter sizes used at the Fred B. Noe Craft Distillery versus those at the large-scale main plant. “If something doesn't go good, you've only got so much tied up in it. But if it turns out good? Then we'll move it up to the big plant.”
Here's what the smaller fermenters look like, from my 2023 visit:
That's not just a lesson in distilling–it's a lesson in designing for learning. In Lean, we talk about testing improvements on a small scale: a prototype, a simulation, a controlled pilot. Fred's 4,000-gallon fermenters function in the same way. It's a learning lab–a place to test ideas, tweak recipes, and explore “what if?” with lower stakes and faster feedback loops.
The Brown Rice Experiment–and Revisiting Ideas
One of Fred's favorite examples is brown rice Bourbon. It wasn't a one-and-done idea–it was something they've circled back to over the years.
“We got some real good response on our brown rice. We've actually revisited it several times. Did the innovation back years ago, but the accountants? They don't like seeing too much money tied up for 13 years in a warehouse.”
Translation: the Bourbon was promising, but long-term inventory risk was real. So the team paused. Reflected. Then tried again–with adjustments. And it's been released.
Innovation isn't always a straight line. As Fred shows, it often looks more like loops, rework, and long pauses followed by new insight. And that's okay–as long as we keep learning.
Innovation Built During Constraint
The Fred B. Noe Distillery–and its adjoining Kitchen Table restaurant–were both built during the COVID-19 pandemic. While most visitor experiences were shut down, Fred's team used the moment to lay the foundations for the future.
“No visitors were coming in. We restricted people on campus to keep employees safe. But we still got things done.”
Again, it wasn't just about keeping busy–it was about building capacity for smarter experimentation. The smaller distillery, with new equipment, labs, and those right-sized fermenters, now enables experimentation at a pace and scale that would have been impossible in the legacy system.
My Question: What About Failed Experiments?
When I heard Fred speak at the distillery, I asked him directly:
How do you handle experiments that don't work out?
He smiled and didn't hesitate:
“You kind of have an idea, you hope… but if something doesn't go good? Well, that's just how it goes.”
No panic. No defensiveness. No excuses. Just acceptance and reflection.
That answer reveals a powerful leadership trait: Fred doesn't see a failed experiment as a personal failure. He sees it as part of the process. That mindset is essential to creating psychological safety–where people aren't afraid to try, and leaders don't punish honest mistakes.
Freddie's Blend That Didn't Work Out
Fred also shared a story about his son, Freddie, who represents the eighth generation of the Beam family. Like his father and grandfather before him, Freddie has been encouraged to experiment–even if things don't pan out.
One idea was to blend three different whiskeys–corn whiskey, rye whiskey, and malt whiskey–in hopes of recreating one of the Jim Beam mashbills through blending rather than traditional distilling.
It didn't work.
“All three of those whiskeys have too much corn in them,” Fred explained with a chuckle. “So when you try to blend 'em together, it doesn't balance out the way you'd think.”
This was a dead end–but also a win. Because Freddie learned something critical about process and balance that no textbook could have taught him. In Lean terms, it was a perfect Plan-Do-Study-Adjust moment: try, reflect, learn, move on.
And maybe most importantly, Fred didn't frame it as a mistake to regret. He framed it as part of the journey.
Legacy, Humility, and Letting the Next Generation Try
Fred also spoke about the pressure of legacy. His father, Booker Noe, was a pioneer in the Bourbon world–but even he told Fred not to assume the business would always be there.
“Back in the seventies, Bourbon wasn't so cool. Everybody was drinking that clear stuff. My dad said, ‘Don't bank on this thing being here.'”
It's hard to imagine now, with Bourbon surging in popularity, but that mindset–humble, realistic, grounded–is part of what's kept Jim Beam innovative.
Fred didn't walk into the family business with certainty. He came in with curiosity. And he's passed that same approach on to Freddie, who is carrying the torch with his “Little Book” series and experimental blends.
It's not a handoff of perfection. It's a handoff of learning.
Thinking in Decades, Not Quarters
One of the most striking points Fred made when I heard him in 2025 wasn't about tanks, grains, or yeast strains–it was about time horizons.
Fred explained how their parent company, Suntory, approaches the Bourbon business with a long-term perspective:
“They're looking ten years out… not just at this quarter. They'll say, ‘If we make these investments today, how's that going to help us a decade from now?'”
Fred admitted that, coming from decades in the American business environment, this perspective surprised him. He was used to accountants pressing him with short-term questions–“What are you going to do with all this whiskey sitting in warehouses for 13 years?”–and feeling that tension between craft and quarterly results.
“At first I thought, wow, really? Ten years? Most companies are worried about next quarter's numbers. But they said, ‘No, take your time. Think about the long haul.' That impressed me.”
What also struck Fred is that the Suntory leaders he works with aren't “spreadsheet people.” Like Fred, they are whiskey people. Many of them were born into the industry, just as Fred was, and they view it not just as a business, but as a calling and a legacy. That shared perspective builds trust across cultures and continents–when Fred talks about tradition and heritage, Suntory doesn't need convincing. They live it too.
This perspective aligns beautifully with Lean thinking. In The Toyota Way, one of the core principles (the FIRST principle, actually) is:
Base management decisions on a long-term philosophy, even at the expense of short-term financial goals.
By thinking in decades rather than quarters, Suntory creates the space for real innovation to thrive. It allows Jim Beam to invest in a new craft distillery during a pandemic, or to keep tinkering with brown rice recipes for years until they're ready to scale. It also gives Fred and his team the freedom to treat mistakes not as setbacks, but as stepping stones toward long-term success.
Related Posts About Suntory and Suntory-Beam
Distilling the Leadership Lessons
So what can we take from Fred's story–whether we're leading a distillery, a hospital, a factory, or a startup?
Here are a few distilled lessons:
- Start small to learn big. Use pilot spaces, small-batch tools, or right-sized fermenters before making large-scale changes.
- Don't punish failed experiments. Create a culture where trying, learning, and adjusting is valued more than getting it right the first time.
- Leverage constraints as creative fuel. Innovation isn't just for blue-sky days. It often starts in the toughest moments.
- Reconnect with your “why.” Fred's stories often come back to family, legacy, and love for the craft. Great leadership starts with clarity of purpose.
- Think in decades, not quarters. Real improvement requires patience, humility, and a willingness to invest for the long haul.
- Make space for the next generation. Leaders who truly care about improvement are always asking: Who else can we involve? Who else can we teach?
A Toast to Mistakes That Age Well
Fred Noe might be in the whiskey business, but he's also in the learning business. The best of what Jim Beam produces isn't just aged in oak–it's aged in experience, in trial and error, in respect for what came before and what's possible next.
We don't always know if a 4,000-gallon idea will be worth scaling. But with the right mindset, team, and environment, we can learn our way there.
And sometimes, that learning is as smooth as a well-aged pour.
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Let’s build a culture of continuous improvement and psychological safety—together. If you're a leader aiming for lasting change (not just more projects), I help organizations:
- Engage people at all levels in sustainable improvement
- Shift from fear of mistakes to learning from them
- Apply Lean thinking in practical, people-centered ways
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