Posted on 05/12/2015 9:33:29 AM PDT by 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.
(Excerpt) Read more at businessinsider.com ...
more jobs for ISIS???
The people have no whiskey!Let them drink vodka.
I need to get some put back, just in case. ;)
/johnny
I know if my house collapsed I’d prolly be drinkin’ a lotta burbin...
From the article: “So here’s the problem: ever since the house market’s collapse, there’s been a slowdown in white oak logging . . .”
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.
I noticed the Price of Knob Creek was up about 25% from the last bottle I purchased.
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?
There was a 60 minutes episode a couple weeks back about Scottish whiskey. It showed them unloading a container of used barrels that said Jim Beam on them.
Bourbon ping
May I suggest my favorite, from my hometown...
People will be willing to go out and cut down any kind of tree if you pay them.
Nice garage!
By definition, Bourbon must be aged in new charred barrels. If the barrel isn’t new, then the beverage is not Bourbon.
I don’t see the connection either. White Oak is not commonly used in home construction, at least not around here.
There are laws which require that if they want to call it Bourbon. The mash also has to be comprised of 51% corn and aged at least 4 years. They don't have to follow those rules, but if they don't they can't call it Bourbon.
That is a legal minimum. I don't even know who sells 2 year bourbon, though I'm sure there must be.
The barrels are new, but they must be fire charred on the inside before they can be used. That's part of what makes bourbon superior to whiskey, along with the highly meticulous and varied aging.
There will not be a bourbon "shortage", there will be more costly bourbon. I switched from my favorite Elija Craig 12 year (up 50% in the nine years I've lived in Kentucky. Partly because the government keeps raising the taxes) to Trader Joes brand which is made in Louisville. It's not as good, but it's one of the best $15 bourbons I've tasted.
There are probably a couple hundred rick houses around here, each holding 20K barrels of 53 gallons. And they're all full.
An interesting article on rick houses:
http://www.whiskeyprof.com/how-a-traditional-rackhouse-works-small-batch-single-barrel/
If you've never experienced it, the fragrance in a rick house is heavenly (think Heaven Hill which includes that as part of their tour).
For the same basic reason that you can't make Scotch in Kentucky: the definition of the term is clear, if a bit arbitrary. If you make something other than what the definition covers, you're making something not covered by the term. Bourbon is made in the US Southern region, in new charred oak barrels, and served un-filtered. If you use used barrels, or filter it, there will be a change in taste making it something other than bourbon; Jack Daniels is a whiskey made in TN using new oak barrels, but because it's charcoal filtered it isn't bourbon (and does taste different).
The article states that many of the loggers that supplied white oak logs went out of business in the great recession.
The loggers don’t just go out and cut down White Oak trees. They log the trees in the area. The demand for timber in general fell during the recession. However, the demand for Hardwoods such as oak did not go down as much as the demand for softwoods like pine.
The tree species go to various sawmills based on price/demand. For example, I had my property in NH logged a couple years back. The Eastern White Pine timber went to one sawmill. The red oak, black oak, maple and birch went to another sawmill. The Eastern Hemlock went to a company that ships them to China. The chips/tops went to a cogeneration plant that burns them to make electricity.
The problem is more likely the availability of white oak at the price the barrel manufacturers are willing to pay for the lumber. If the price of the barrel goes up, they can pay more for the lumber, which means the sawmill can pay more for the logs. Which IF the price the sawmill pays goes up, supply of timber will go up. ECON 101, capitalism at work.
Dem’s da rulez:
The Federal Standards of Identity for Distilled Spirits (27 C.F.R. 5) state that bourbon made for U.S. consumption must be:
Produced in the United States
Made from a grain mixture that is at least 51% corn
Aged in new, charred oak barrels
Distilled to no more than 160 (U.S.) proof (80% alcohol by volume)[17]
Entered into the barrel for aging at no more than 125 proof (62.5% alcohol by volume)
Bottled (like other whiskeys) at 80 proof or more (40% alcohol by volume)
Bourbon has no minimum specified duration for its aging period. Products aged for as little as three months are sold as bourbon. The exception is straight bourbon, which has a minimum aging requirement of two years. In addition, any bourbon aged less than four years must state the age of the spirit on the bottle.
Bourbon that meets the above requirements, has been aged for a minimum of two years, and does not have added coloring, flavoring, or other spirits may (but is not required to) be called straight bourbon.
Bourbon that is labeled as straight that has been aged under four years must be labeled with the duration of its aging.
Bourbon that has an age stated on its label must be labeled with the age of the youngest whiskey in the bottle (not counting the age of any added neutral grain spirits in a bourbon that is labeled as blended, as neutral-grain spirits are not considered whiskey under the regulations and are not required to be aged at all).
Bourbon that is labeled blended (or as a blend) may contain added coloring, flavoring, and other spirits (such as un-aged neutral grain spirits); but at least 51% of the product must be straight bourbon.
“Why would a slowdown in the housing market affect people who harvest wood for barrels.”
1. Volume. Loggers won’t show up for a stem or two, need at least a full truck load.
2. Looking at the barrel staves, that wood might be a by-product of cutting dimensional pieces for the housing market. Therefore a lot cheaper than cutting down entire trees.
We have a small tree farm and can’t hire loggers. Not enough volume, and also yada yada.
We have an Amish lumber yard nearby, less than 10 miles, but we have to cut and haul and we don’t have the equipment and truck and etc.
If we had any small pieces of white oak maybe I would rent a trailer and haul them to the distillers with my SUV.
Thanks for the definition. You left out it is only Bourbon if it is made in Kentucky. Therefore, Jack Daniels is NOT bourbon.
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