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T Comp
03-08-2013, 10:51
Heaven Hill approved for tax credits to help them add 4 four processing fermenters by next year at Bernheim. They expect to expand production by 50%.

squire
03-08-2013, 12:10
I'll drink to that.

mark fleetwood
03-08-2013, 15:04
Can't wait for the glut of 2018!

Phil T
03-08-2013, 15:10
Heaven Hill approved for tax credits to help them add 4 four processing fermenters by next year at Bernheim. They expect to expand production by 50%.

They're going to expand production 50 %? Don't they have like a million barrels aging? This could be very good.

soad
03-08-2013, 15:35
They're going to expand production 50 %? Don't they have like a million barrels aging? This could be very good.

Flood the market with Evan Williams BIB!! Drive those "watered down bandits" at Beam out of business!!

Phil T
03-08-2013, 15:38
I'm thinking 10 or 12 year BIB would kick some ass

Rutherford
03-08-2013, 15:46
Henry McKenna is a 10 year BiB they already have on the market for cheap

Phil T
03-08-2013, 15:52
Henry McKenna is a 10 year BiB they already have on the market for cheap

I'm aware of the 10yr SB, didnt know they had a BIB

*just did a quick label search, I did not know it was bonded

cowdery
03-08-2013, 16:15
If you want to help bring on the next glut, stop buying things made in China.

Looks like this will take Heaven Hill up to about 5.3 million gallons a year.

squire
03-08-2013, 16:23
5.3 million gallons. I just want to sit and think about that for awhile.

BFerguson
03-08-2013, 18:37
5.3 million gallons. I just want to sit and think about that for awhile.

Just sit? Hell, I'll drink to that!!

B

squire
03-08-2013, 18:45
Capital idea B . . .

black mamba
03-08-2013, 23:23
I know I've been doing my part . . . let's see, I have HH Gold BIB, JTS Brown BIB, HH White BIB, EC12, Ezra B 1B, RR, and a barrel proof EC12 preordered (well 2 actually).

Anyone else REALLY like HH?

CoMobourbon
03-08-2013, 23:55
I know I've been doing my part . . . let's see, I have HH Gold BIB, JTS Brown BIB, HH White BIB, EC12, Ezra B 1B, RR, and a barrel proof EC12 preordered (well 2 actually).

Anyone else REALLY like HH?

Yeah, now that I think about it, HH and Four Roses are by far my two favorite distilleries / producers. I mean, there are sweet spots in every distillery's lineup (I will avoid naming products so as to avoid a groin shot), but the bang for buck ratio across the whole HH lineup is unmatched.

black mamba
03-09-2013, 00:43
Agreed, CoMo. BTW I'm a 1978 Mizzou grad (physical education 7-12). Oh, I forgot, I have an unopened EWSB that I just bought 3 days ago.

HH Old Style White is hands down the best bourbon for the money on the planet. I tried it for the first time against AAA 10 yr which was double the price of the HH, and the HH was better all the way around.

4R is my second fave also.

tmckenzie
03-09-2013, 05:48
5.3 million gallons. I just want to sit and think about that for awhile.

That is a lots of rain and corn.

squire
03-09-2013, 06:05
And some elbow grease Tom but hey, you guys could crank that out in what, three months, tops?

tmckenzie
03-10-2013, 08:20
yea right. Right now a barrel and a half on a good day. 53's. But in about a month when I get that beer still and thumper plumbed up, should be able to make a gallon a minute. Or a little more. Be a big relief. Rye leaving faster than I can make it.

squire
03-10-2013, 09:02
Well keep up the good work then.

TheNovaMan
03-10-2013, 18:48
If you want to help bring on the next glut, stop buying things made in China. I've been avoiding Chinese products as much as I possibly can for years.

JPBoston
03-10-2013, 21:23
I've been avoiding the Chinese as much as I possibly can for years.

^ A little creative editing for your enjoyment.

squire
03-11-2013, 11:19
I'm encouraged Heaven Hill is even considering expansion which bodes well for the industry prospects generally.

cowdery
03-11-2013, 13:51
Adding capacity doesn't mean you have to use it, of course, but they obviously feel that their sales will continue to grow.

I know there is nothing the people at Heaven Hill (and most businesses) hate more than saying no to customers and prospective customers. MGPI may be posing a challege to their contract and bulk business. Although as a private company they don't post sales results, I'm sure they've seen the same kind of explosive growth everyone else has experienced in the last two years. If you look at Beam, Brown-Forman, Buffalo Trace and Wild Turkey, at least, they all are producing well below their current capacity. So is Heaven Hill, but not by nearly as much.

By the way, the reports say they are adding four fermenters, which may not sound like much, but Heaven Hill has the biggest fermenters in the business: 120,000 gallons each.

I suppose this buries any notion that they will ever build another distillery in Bardstown. They may, however, have to build some more warehouses soon. Or start using the largely empty ones in Louisville more. They don't like those masonry warehouses for bourbon. They age brandy in them, some contract-distilled bourbon, and the bourbon they sell in Australia for pre-mixes, but not the bourbon destined for Evan Williams, Elijah Craig, etc. I think they'll stick to that, because they have built some new ones on the main campus in Bardstown.

One funny thing about Bernheim. While many of the front office people at Heaven Hill commute to Bardstown from Louisville, many of the distillery hands make the reverse trip.

TheNovaMan
03-11-2013, 21:20
If you look at Beam, Brown-Forman, Buffalo Trace and Wild Turkey, at least, they all are producing well below their current capacity. So is Heaven Hill, but not by nearly as much. Is that because storage is an issue, or are they trying to avoid another glut?

squire
03-11-2013, 21:22
Trying to avoid tying up too much capital for the next six years.

mosugoji64
03-11-2013, 21:27
I'm sure memories of the glut years aren't far from their minds.

tmckenzie
03-12-2013, 04:34
I know one company smiling about all the new small stills and expansion of the big boys. Vendome. They are swamped.

cowdery
03-12-2013, 12:00
Vendome was slow to get in the pool, but they're making up for lost time.

You never want to operate at capacity because that means you can't grow. Production is based on sales projections, which are constantly adjusted. They'll adjust maybe every six months. Their projections are based on current sales, less any business they know is going away, plus any known new business, plus a factor based on a general prediction of business trend. Jack Daniel's once told me that they kept it simple and just increased production by five percent every year. But if they see data that tells them to change that, they'll change it.

Storage is a dynamic of the system that most people don't think about. An expansion that increases distillery capacity by a million gallons requires a new warehouse, which holds about 20,000 barrels, which is about a million gallons. The move to super premiums means longer aging. You need more warehouses if you're selling at 8 years than you do if you're selling at 4. This is also why companies are typically very agreeable to selling new make, whereas aged stock is more dear. You can't make more whiskey unless you have someplace to put it.

Buffalo Trace has excess distilling capacity because it has two distilleries and BT itself is huge. Planned in 1990 or 1991, when the business was depressed, Bernheim was relatively small. It was smaller than the distillery it replaced for Heaven Hill. It was probably smaller than its predecessor on that site. After HH took it over, they continued to buy new make from Brown-Forman until they could expand. I don't know how long they thought that expansion would hold them, but probably longer than it did since they're already doing another one.

They're on a city lot, not out in the country where they can just claim another corn field, although they have some buildings they don't use such as the old dry house, which could be demolished to make room.