How Kentucky bourbon went from boom to bust
12 days ago
- #alcohol-industry
- #trade-wars
- #bourbon
- Kentucky bourbon experienced a boom post-2008 recession due to affordability, vintage bottle sales, and mid-century nostalgia.
- Bourbon sales grew by 7% worldwide from 2011-2020, but slowed to 2% from 2021-2024 due to pandemic, inflation, and changing drinking habits.
- Trade wars and tariffs, including EU and Canadian retaliation, have further hurt bourbon exports, with Canada accounting for 10% of Kentucky's bourbon business.
- Economic pressures have led to declining sales, bankruptcies (e.g., LMD Holdings, Garrard County Distilling), and closures (e.g., Jack Daniel's barrel plant).
- Oversupply of aged bourbon is driving down prices, but tough times may spur innovation, as seen in the Scotch whisky industry.
- Canadian distilleries are adapting by experimenting with bourbon-making methods to reduce reliance on U.S. imports.