Kentucky Bourbon went from the boom to the bust

Kentucky Bourbon, like Apple Pie, has grown rapidly after the last big recession. But after the collapse of the economy and several trade wars on horizontal lines, the market can be built.

The whiskey, traditionally made of corn and aged with charcoal and charcoal oak barrels, has the roots of returning to the 18th century, but until 1964, when Congress passed the “unique product of the United States,” it became an American symbolic piece until 1964.

However, the trend of drinking came and gone, and at the end of the 20th century, Bourbon was considered a bit old.

“We see this kind of generational change that people don’t want to drink what parents drink,” said Marten Lodewijks, the US president of IWSR, said, “IWSR’s US president, who collects alcoholic beverage data and provides industrial analysis.”

Then, as the world recovered from the economic downturn in 2008, drunken seemed to rediscover this classical spirit for some different reasons.

First of all, the price was good, so it was attractive for bar managers to buy cocktails, integrate cocktails, and sampling young drinkers. Then, in 2013, the law passed in Kentucky, so that companies could easily purchase and resell vintage bottles, opening up a high -end market. In addition, the increase in perfume in the mid -century, when shows such as MAD MEN, were supplied with fuel, were scheduled for the Renaissance Renaissance.

According to the industry data company ISWR, sales of Bourbon increased 7% worldwide between 2011 and 2020, more than three times the growth of 10 years ago.

Soon some bourbon distillers have become a quasi -similarity, and people are not drinking, but they started to buy Bourbon bottles by investing.

Robin Wynne, general manager and drinking manager of Little sister in Toronto, Canada, said for about 25 years, “We have been treated as a product like a stock like stock.

“People will go into Prospector to turn the bottle two to three times the price.”

But like most market bubbles, Loy market bubbles have been ruptured. Investigating the rockdown tank bar sales of the infectious diseases, inflation has made many bourbon drinkers to choose cheaper options or drink together. Among the Z Gen-Z, 20 people with a lot of people drink less than older brothers and their parents were older.

According to ISWR data, these factors have contributed to a decrease in alcohol sales, and Bourbon sales slowed to 2%in 2021-2024.

President Donald Trump’s global tariff was the last straw. The EU has been delayed for six months, but has announced retaliation tariffs on US products, including Kentucky Bourbon and California wine.

Meanwhile, most of Canada’s provinces have retaliated to import US alcoholic beverages. The country accounts for about 10%of Kentucky’s $ 9 billion (£ 6.7 billion) whiskey and bourbon business.

Lawson Whiting, CEO of Jack Daniels from Brown-Formen, Woodford Reserve and Old Forester, will stop the Canadian buying American boots. When the plan was announced, Lawson Whiting, CEO of Brown-Forman, who produced Jack Daniels of Jack Daniels in March, said, “This is literally eliminated and completely removed from the shelf. Because it is worse than tariffs.

Trump said tariffs will promote American business.

But Senator Rand Paul, a Republican Senator, reporters Kentucky, said the tariff would harm local companies and consumers in his hometown.

“Well, tariffs are taxes, and if you pay taxes on your business, you will always be delivered at cost. So in May, ABC’s” this week “said.

This economic pressure has made a list of casualties more and more.

Liquor Giant Diageo reported by Bulleit, a Kentucky distillery that made bourbon, rye and whiskey, which fell 7.3% in the fiscal year.

Kentucky Burburn -Sales, owned by Wild Turkey -Kampari, has decreased 8.1% over the last six months.

International brands of large corporations may be able to overcome storms, but the list of casualties has increased due to sales hits.

In July, LMD Holdings applied for 11 bankruptcy -only one month after the opening of Luca Mariano Distillery in Danville, Kentucky.

This spring, Garrard County Distilling has been picked up.

In January, Jack Daniel’s parent company closed a barrel production plant in Kentucky.

The bottom of the barrel has not yet reached, Lodewijks warned.

“I was very surprised without more bankruptcy,” he said.

Burburn has partially has become a victim of its own success, which helps to fuel to small distillers, which are partially increasing in bourbon and the growth of the premium market. Bourbon has been old in barrels for several years, so today’s market is expected to be expected a few years ago, which means that there is an oversupply and lower price.

But this economic situation is harsh, but Lodewijks said that the era of difficult history showed how to create innovation. Scotch Whisky was in the past and was simple and the end of the middle road was mixed. However, when sales decreased in the second part of the 20th century, distillers began to aging excessive illnesses, which helped to create a market for premium and senior scotch whiskey.

In Canada, where Burburn imported, the local distillery began to test the bourbon to make a similar taste to Canada whiskey.

Wynne said, “The tariff war has actually done a positive work in the Canadian mental business.

“We do not rely on the Lord and have many grains to make this whiskey.”