Bourbon is an American whiskey made with a grain mixture that is at least 51% corn, aged in wooden barrels, and bottled at no more than 40% alcohol by volume. This has been a popular drink throughout the United States for years. In fact, its roots go all the way back to the late 18th century. It has remained a drink favored by many ever since. However, even with its devoted fanbase, bourbon was experiencing an all-time-low for production in the late 1990s. 

This dip in production could have signaled a slowing in the predicted future of the alcoholic beverage, but instead, the opposite happened. Beverage investors would have been wise to hop on the bourbon train as the drink has seen a meteoric rise since the turn of the Millenium.

This has been coined the Bourbon Boom. Let’s look into how it came about and what it means for the future of the heralded spirit.

Contact the Brindiamo Group for more information on how they can help you source barrels of whiskey. 

The 2000’s 

Things began turning around for bourbon early in the decade. Craft cocktails were becoming increasingly popular, and bourbon was a frequent ingredient used in these drinks. Patrons and bartenders alike noticed how well the spirit could be incorporated into interesting mixtures and began experimenting more with it.

At the same time, countries outside of the United States found their taste for bourbon. The Kirin Brewery Company from Japan bought Four Roses, a bourbon originally produced in Kentucky. This led to increased sales in both European and Asian markets, which would grow to become large consumers of bourbon.

Wild Turkey was purchased in 2009 by Gruppo Campari, and Italian company. This further stretched the reach of Kentucky bourbon to international markets. Production and distribution would be streamlined.

Other international companies followed suit, buying up American bourbon companies and spreading the elixir even further around the world. Demand for bourbon skyrocketed as countries like Germany, Australia, and Japan became large consumers. This began putting a strain on stockpiles of bourbon which kicked production into high gear. High demand led to increased pricing but the demand didn’t wane, and so the Bourbon Boom was on.

Pappymania 

Pappy Van Winkle’s Family Reserve had what some might call a cult following in the 2010’s. Demand for the bourbon skyrocketed, leading producers to raise the price because their stock was quickly diminishing. However, the price raise only added to the exclusivity of the drink and the popularity continued to soar. 

This rising star of the bourbon world had a lot to do with the endorsement of Anthony Bourdain, famous chef and television host. He referred to the drink as an “incredibly wonderful bourbon,” and then refused to say the name out of fear that everyone would start drinking it. He then, however, showed the label which let the secret out.

Aside from the celebrity push, the bourbon won multiple awards for its high quality and deserved the reputation it gained. Prices skyrocketed and journalists had a darling in the bourbon world they could focus in on. The high prices couldn’t be afforded by every bourbon-buying customer, so other bourbons began seeing an increase in sales when people reached a little lower on the shelf for something closer to their price range. A rising tide lifts all boats, as they say. 

Moving Forward 

Bourbon sales saw a 50% increase between 2012 and 2017. This trend is indicative of not only the demand for bourbon, but the resulting increased production. And bourbon can take a long time to make. Some recipes take decades before they are ready for consumption. This means that once this wheel starts turning, it’s difficult to bring it to a stop.

And the market doesn’t show any signs of slowing down. Millennials are among the demographics that are fueling this boom. This is a target market that has years ahead of it to continue purchasing and consuming bourbon. The good news is that the production rates of today will be able to keep up with this demand down the road.

As an example of the expansion of stock, Wild Turkey is investing in a warehouse that will hold 46,000 barrels at a cost of $2.2 million. And this is just one of the 68 distilleries in Kentucky. It’s estimated that Kentucky alone has a stockpile of around 7.5 million barrels of bourbon—the largest amount in more than 40 years.

So why is this of interest to beverage investors? The demand is there, and so is the stock. Now is the time to jump into the industry, if you ever plan on doing it. The Bourbon Boom shows no signs of slowing down.

The Brindiamo Group has been helping beverage investors source barrels of whiskey for years. Contact us today to see what we can do for you.