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How Bourbon Survived Prohibition: The Resilience of Whiskey and the Legacy of Joseph Magnus

  • May 29, 2025
  • Blog
  • Jos. A. Magnus & Co.

On January 17, 1920, the United States enacted the 18th Amendment, ushering in the era of Prohibition. The nationwide ban on the production, importation, and sale of alcoholic beverages was meant to curb social ills, but instead, it drove drinking underground, fueled organized crime, and nearly destroyed the American whiskey industry.

For bourbon producers, Prohibition was catastrophic. Distilleries were forced to shut down and many never reopened. Some turned to producing “medicinal whiskey” (the only legal way to sell spirits) while others resorted to bootlegging. Despite these challenges, the great American spirit – bourbon – endured. All thanks to ingenuity, perseverance, and a few determined individuals who kept the tradition alive.

How Bourbon Survived Prohibition

Medicinal Whiskey: A Legal Loophole for Bourbon

Under the Volstead Act, physicians could prescribe whiskey for ailments ranging from anxiety to indigestion. Pharmacies became the only legal source of spirits and distilleries like Jos. A. Magnus & Co. had to pivot or perish. Only six medicinal licenses were granted to bourbon distilleries in the 20s, allowing the lawful production of a tiny amount of bourbon to trickle on. While Joseph Magnus himself retired to Michigan when Prohibition hit, other brands, such as Old Forester and A. Smith Bowman, secured medicinal licenses, ensuring bourbon remained available — albeit in limited quantities.

The Rise of Bootlegging and Speakeasies

With legal avenues restricted, underground markets thrived. Bootleggers smuggled whiskey from Canada, Mexico, and the Caribbean, while moonshiners produced unaged “white dog,” a raw unaged white whiskey in hidden stills. Speakeasies — secret bars often run by organized crime — kept demand high, ensuring whiskey culture persisted despite the ban.

Bourbon after Prohibition

When Prohibition forced Joseph A. Magnus to close his Cincinnati distillery in 1918, it seemed the end of an era. Yet, nearly a century later, his legacy was resurrected in spectacular fashion. Many pre-Prohibition bourbons were lost forever, but a few survived in private collections. Decades later, these rare bottles would inspire modern revivals — including the rediscovery of Joseph Magnus’ legendary Murray Hill Club Whiskey in 2014.

In 2014, Magnus’ great-grandson, Jimmy Turner, uncovered a few surviving bottles of Murray Hill Club Whiskey — a bourbon originally crafted in the late 1800s. After expert analysis confirmed its exceptional quality, Turner partnered with master blender Nancy Fraley to recreate the historic spirit using traditional methods.

By 2015, Jos. A. Magnus & Co. was reborn in Washington, D.C., with a new line of premium bourbons. In 2020, the company relocated to Holland, Michigan, reconnecting the brand to Magnus’ deep ties to the state, where he spent summers in Oden and built a lasting legacy. Today, Joseph Magnus & Co. continues to honor its founder’s commitment to excellence, crafting award-winning spirits that bridge the past and present. From its historic roots in Cincinnati to its modern home in Michigan, the Magnus name remains synonymous with innovation, tradition, and uncompromising quality.

Prohibition nearly erased American whiskey, but bourbon — like Joseph Magnus’ legacy — could not be extinguished. Through resilience, creativity, and a dedication to craft, both survived… and thrived.

Find Joseph Magnus spirits at a retailer near you or buy online. Join our mailing list to stay up to date with the latest from Jos. A. Magnus. You can also follow us on Facebook and Instagram to stay up to date.

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