$500 richer from ol’ Krazy soon enough!
Well I can assure you Stoops is still at UK and this, lol, wasn’t a bet I lost.
- That said, long evening, but wanted to touch on something someone posted about “bubbles”.
I honestly don’t think Bourbon is a bubble. I do believe this secondary insane prices are and obviously that won’t keep up, but bourbon isn’t.
I’ll take it a step farther too, NPB(non producing brands) are being priced out of the market right now as barrels that cost $2000 last year are now $4000 a pop for 4year old juice. KY bourbon is worse, and it’s getting worse by the day as far as barrel purchases.
Rumors of this spread last year but seemed unrealistic, but after getting voted down in Frankfort I began to doubt that I’d be able to reach my goal of starting my own distillery.
Since then I’ve had nothing but good luck with finding smaller hole in the wall distillers that have signed contracts with me and honestly help me with advice more than I’d ever expect. Then a land deal 1 mile from my residence fell in my lap and at that point I reached out to several possible investors.
That was back in August, and in that 6 months Wild Turkey, owned by Gruppo Campari, bought wilderness trail and Bardstown Bourbon Company bought Green River which eliminated 2 of the biggest contract distilling companies in the state.
That threw barrel prices thru the roof and now any small lot that would usually take a verbal commitment and get you samples in the past, now you don’t have time to even ask for samples, commit or on to the next one.
Now more than ever it’s become clear either you know the market/industry and become a producer or you may want to consider how long you can sustain your business model and selling product at $100-300 a bottle.
But that’s just here in the states! Globally, which is the cause of all the expansion at basically every distillery, bourbon is flat out insane and that absolutely will not slow down anytime for the next 20-30 years.
Beam, Heavenhill, Buffalo Trace all have 100 million dollar expansions. Others as mentioned above didn’t want to wait out state permitting etc and spent 100’s of millions on currently operating distilleries to get a jump on expansion.
Kentucky is doing a great job accelerating things to capitalize as much as possible with other states now also trying to jump in like the Wild West, but only Kentucky is governed tight because of the designation “Kentucky Straight Bourbon” brings such a prominent increase in quality and perceived prestige.
Anyway that is the long winded version as to why I think the term bubble for the bourbon industry is a little misleading, but if brand can’t get into a producing distillery or start one they are fighting an uphill battle.