Kentucky and Tennessee are experiencing
a boom in bourbon sales both domestically and internationally. Zero Hedge had an extensive post about it today. Here are some numbers that are impressive:
U.S. revenues for both spirits climbed by 9.6% last year, or 46.7% over the past five years, to $2.7 billion in 2014. More importantly, higher end brands continue to drive this growth. A stronger dollar in the back half of 2014 didn’t stop foreigners from enjoying American whiskey either: exports grew to a record of $1.02 billion.
Some impressive facts from this article were laid out as well. Kentucky produces 95% of the world’s bourbon supply. Distillery employees salaries average $91,188.
Unfortunately prices may inch up due to strong demand that is putting pressure on creating more supply. That supply maybe disrupted and here’s why:
bourbon must mature in new, charred white oak barrels, which are in short supply. While demand increases from established distilleries and hundreds of new entrants……lumber production fell from 11.7 billion board feet in 2005 to 5.9 billion in 2009 compared to only 8.6 billion in 2014