These economic pressures have created a growing list of casualties.
Liquor giant Diageo, reported that sales of Bulleit, a Kentucky distillery that makes bourbon, rye and whiskey, where down 7.3% this fiscal year.
Wild Turkey - a Kentucky bourbon owned by Campari - sales were down 8.1% over the past six months.
While big, international brands will likely be able to weather the storm, the sales hit has led to a growing list of casualties.
In July, LMD Holdings filed for Chapter 11 bankruptcy - just one month after opening the Luca Mariano Distillery in Danville, Kentucky.
This spring, Garrard County Distilling went into receivership.
And in January, Jack Daniel’s parent company closed a barrel-making plant in Kentucky.
The bottom of the barrel has not yet been reached, warned Mr Lodewijks.
“I’d be extraordinarily surprised if there weren’t more bankruptcies and more consolidation,” he said.
In part, bourbon has become a victim of its own success - the rise in bourbon sales, and the growth of the premium market, helped fuel many small distilleries. Because bourbon must age in barrels for years, what’s on the market today was predicted a few years ago, which means that there is currently an oversupply, which is driving down prices.
But while these economic conditions are harsh, Mr Lodewijks said that history has shown how tough times can create innovation. Scotch whisky used to be fairly simple, a blend of middle-of-the road tipples. But when sales declined in the second part of the 20th centuries, distillers started aging their excess bottles, which helped create the market we have now for premium, aged Scotch whisky.
In Canada, where bourbon imports have slowed to a trickle, local distilleries have started experimenting with bourbon-making methods to give Canadian whiskey a similar taste.
“The tariff war has really done a positive for the Canadian spirits business,” noted Mr Wynne.
“We’ve got lots of grains to make these whiskeys without having to rely on the States.”
most provinces in Canada have stopped importing American alcoholic beverages in retaliation. The country accounts for about 10% of Kentucky’s $9bn (£6.7bn) whiskey and bourbon business.
Liquor giant Diageo, reported that sales of Bulleit, a Kentucky distillery that makes bourbon, rye and whiskey, where down 7.3% this fiscal year.
The last line of the article is most telling imo, Canadian producers are figuring out how to home brew bourbon. These changes are going to be structural and permanent. Why import what you can do yourself?
The story repeats itself across many if not all sectors. The intent of the tariffs is to reduce US reliance on foreign imports. Instead it’s making foreign importers less reliant on the US
This really does feel like a point of no return. Structural self-imposed contraction in the West and BRICS is thriving, settling trades in local currency
Maybe it’s because I did so many American honey shooters back in my drinking days, but it’s wild to see Wild Turkey losing profits. Feel like I probably made up at least 1 percent of those sales personally lol
These economic pressures have created a growing list of casualties.
Liquor giant Diageo, reported that sales of Bulleit, a Kentucky distillery that makes bourbon, rye and whiskey, where down 7.3% this fiscal year.
Wild Turkey - a Kentucky bourbon owned by Campari - sales were down 8.1% over the past six months.
While big, international brands will likely be able to weather the storm, the sales hit has led to a growing list of casualties.
In July, LMD Holdings filed for Chapter 11 bankruptcy - just one month after opening the Luca Mariano Distillery in Danville, Kentucky.
This spring, Garrard County Distilling went into receivership.
And in January, Jack Daniel’s parent company closed a barrel-making plant in Kentucky.
The bottom of the barrel has not yet been reached, warned Mr Lodewijks.
“I’d be extraordinarily surprised if there weren’t more bankruptcies and more consolidation,” he said.
In part, bourbon has become a victim of its own success - the rise in bourbon sales, and the growth of the premium market, helped fuel many small distilleries. Because bourbon must age in barrels for years, what’s on the market today was predicted a few years ago, which means that there is currently an oversupply, which is driving down prices.
But while these economic conditions are harsh, Mr Lodewijks said that history has shown how tough times can create innovation. Scotch whisky used to be fairly simple, a blend of middle-of-the road tipples. But when sales declined in the second part of the 20th centuries, distillers started aging their excess bottles, which helped create the market we have now for premium, aged Scotch whisky.
In Canada, where bourbon imports have slowed to a trickle, local distilleries have started experimenting with bourbon-making methods to give Canadian whiskey a similar taste.
“The tariff war has really done a positive for the Canadian spirits business,” noted Mr Wynne.
“We’ve got lots of grains to make these whiskeys without having to rely on the States.”
An incredible self-own
The last line of the article is most telling imo, Canadian producers are figuring out how to home brew bourbon. These changes are going to be structural and permanent. Why import what you can do yourself?
The story repeats itself across many if not all sectors. The intent of the tariffs is to reduce US reliance on foreign imports. Instead it’s making foreign importers less reliant on the US
I love to watch the empire crumble. I hate to be in it tho
This really does feel like a point of no return. Structural self-imposed contraction in the West and BRICS is thriving, settling trades in local currency
There’s just no way the US goes quietly
Maybe it’s because I did so many American honey shooters back in my drinking days, but it’s wild to see Wild Turkey losing profits. Feel like I probably made up at least 1 percent of those sales personally lol
The kickin chicken is a favorite for sure
Also about as downmarket as it gets