If you're a consumer that doesn't realize that there are no restrictions on the "craft" denotation, (similar to the organic denotation), then I would argue you are a for taking it on faith that there's a difference.
Is it disingenuous? Sure. Is it illegal? No. Should it be? Not unless you have a legal definition for the terms.
These two points are going to need to be assessed on an individual basis. Something sufficiently disingenuous can cross into false advertising even without the words having a strict "legal definition".
> sufficiently disingenuous
is better.
Ditto “ultra small batch bourbon” not being part of a small batch, or “first bourbon produced in Southern California since Prohibition.” where the bourbon is not produced in Southern California?
Ditto "They brag that they focus their “complete attention on executing each step of the distillation process.”", when they themselves don't pay any actual attention to any steps of the distilling process.
But hey, if you're fine with companies misleading as many people who read the common usage of English words into the English words they read, as much as they like, providing their wording can possibly be read, if you squint hard enough, in one very precise way that isn't quite lying, well, I suppose you'll get the companies and the advertising that you deserve.
As for me, I'm glad that over here we have the ASA.[0]
[0] https://en.wikipedia.org/wiki/Advertising_Standards_Authorit... (See "noteworthy rulings" for some sweet wins for sanity.)
1. http://www.ams.usda.gov/AMSv1.0/NOPOrganicStandards
2. http://www.foodnavigator-usa.com/Markets/Natural-The-most-me...
The American Distilling Institute (ADI) begs to differ. It defines 'craft spirits' as "the products of an independently-owned distillery with maximum annual sales of 52,000 cases, where the product is physically distilled and bottled on site."
For whatever that's worth. (Not a whole lot.)