The distinction lies primarily in the aging process. One type, often clear, is bottled immediately or shortly after distillation. The other type typically undergoes aging in oak barrels, which imparts color and complexity to its flavor profile. The duration of this maturation period is a key determinant of its character.
The aging process significantly influences the final product. Barrel aging contributes to a smoother taste, a richer color, and the development of more intricate aromas and flavors. These aged varieties often command higher prices and are associated with sipping and savoring. The unaged versions, on the other hand, are frequently preferred in cocktails due to their clean and crisp profiles.