You can (partially) thank the housing collapse for the bourbon shortage

Business Insider ^ | 5-12-15 | Portia Crowe

[smokingfrog]

We've reported before on the Great Bourbon Shortage that's coming, and the skeptics who don't think it's real.

Now we have some more context on what could be contributing to the shortage: the housing crash.

Let's take a step back.

You probably know that there's been a huge uptick in the popularity of whiskey in America – especially craft whiskeys and, in particular, bourbon. Demand has surged and the number of distillers has ballooned.

Now, understand that bourbon, a specific type of American whiskey, must be aged for two years in brand new oak barrels. Usually it's aged in white oak, a hardwood native to the eastern US. While Scotch and other liquors can be aged in reused barrels, bourbon cannot.

[PapaBear3625]

This is illogical. Why would a slowdown in the housing market affect people who harvest wood for barrels. I would think that this would actually bring down the cost of barrels as loggers look for new markets.

The larger cuts of the log go to producing furniture, flooring, etc, and the leftover smaller bits can go for making barrels. If you have to use the whole tree, instead of the scraps, then it becomes more expensive.

[ctdonath2]

I HIGHLY recommend perusing this link, American whiskey drinkers: http://recenteats.blogspot.com/p/the-complete-list-of-american-whiskey.html
It details who makes what, who _bottles_ what, and reveals that a whole lotta labels are serving the same stuff from a couple giant distillers.

[ctdonath2]

No, JD isn’t bourbon because it’s charcoal filtered. Bourbon comes from more than just KY.

[woodbutcher1963]

Boy, you guys seem like you have studied this bourbon subject. :)

[cuban leaf]

I live in bourbon country. One of the cooperages here is hiring.

I drive by the Jim Beam, Makers Mark, Heaven Hills and Four Roses distilleries every day. Makers has the best tours...

[ctdonath2]

To fully understand the strict legal definition of bourbon (and other spirits), pour yourself a stiff drink and spend time perusing this link: https://www.law.cornell.edu/cfr/text/27/part-5

[ctdonath2]

Teetotaler until age 35. Discovered bourbon 5 years later. I’m trying to catch up.

[smokingfrog]

Do they give free samples?

[SVTCobra03]

There already is a shortage of Pappy Van Winkle bourbon.

[Malone LaVeigh]

There was a documentary on the Audience channel of DirecTV a couple of months ago called Bourbontucky. Excellent program.

[yefragetuwrabrumuy]

Much of the whiskey produced in the US is from a major plant in Indiana. Smaller bottlers buy it then pretend it is a craft product.

http://www.thedailybeast.com/articles/2014/07/28/your-craft-whiskey-is-probably-from-a-factory-distillery-in-indiana.html

[woodbutcher1963]

“Bourbon comes from more than just KY”

My mistake, thanks for the clarification.

[cuban leaf]

Do they give free samples?

---

Yep. They all do. However, the Makers tour stopped being free two years ago. It started at $7 and almost immediately went to (IIRC) $9. Still we hit it every time our friends and family visit.

[Repeal The 17th]

[tanknetter]

Yeah, I’m drinking my bottle of Pappy 20-year down by the thimblefull at this point. On special occasions. Otherwise I’m sticking with Angels Envy and Hirsch for straight drinks, Buffalo Trace for mixing. But I have another 25 types of bourbon at home, except for my bottles of Pappy, Rip and Elmer all are more than half full. So I’m in good shape to weather the increased costs of a “shortage”

For Knob Creek fans, if anyone has a Costco with a liquor store near them, Kirkland brand bourbon is made by the same folks as Knob Creek, and is very similar but also cheaper.

[duffee]

Years ago I was talking with the Jack Daniels master whiskey taster and he mentioned that they could only use barrels once and I believe he said by law. He said that most of their used barrels were re-used to age scotch, I asked which ones and he said “the better ones”. The inference was that the Jack Daniels improved the scotch.

[SoothingDave]

I do not understand how Scotch producers can age their product in used whiskey barrels, but bourbon makers like Jim Beam/Knob Creek need brand new barrels?

The freshly-charred wood gives the whiskey its taste. The sugars in the wood are caramelized in the charring process and then seep into the spirit during the aging.

A used barrel doesn't do that.

[Bubba Ho-Tep]

The bigger problem, which they don't mention, is that the bourbon being sold today was made before the demand boomed. The distillers are producing more now, but it's sitting in giant Kentucky warehouses aging and won't be on the market for years. In the meantime, increased demand plus limited supply equals higher prices. Interesting fact: There are more barrels of bourbon sitting in Kentucky warehouses than there are people in Kentucky.

[bagman]

As a proud Kentuckian, I must gently correct you. Bourbon does not need to be made in Kentucky. Virginia Gentleman,for instance, is made in Spotsylvania County, VA.

While I sympathize with your distaste for Jack Daniels, my understanding is that, per NAFTA definitions, it is classified as Bourbon. This circumstance is forcing me to re-evaluate by fiercely free-trade leanings.

[centurion316]

My daughter in law, an architect, designed their tasting room (for their customers, the “artisan distillers”). I had to give her a crash course in the finer details of bourbon before she jumped on the MGB corporate jet and did the bourbon trail.