Handling Increased Demand

Bottle sizes are set and regulated by the TTB, so a producer couldn't just start using 700 mL bottles. And to answer VAGentleman's question, 500 mL was dropped in 1989.

As far as handling shortages, different producers have taken varied approaches. Sazerac has taken a balanced approach: eliminate some products, drop age statements on some, and drop proof on others while maintaining age statements. Heaven Hill is a little more targeted, changing the Evan Williams line but not Elijah Craig, for instance. Wild Turkey... well, they're still trying to recover from the 1990s. A lot depends on how diverse your lines are. Sazerac has a lot products and thus a lot more options than say, JD. Maker's is the most extreme example, with only two expressions to work with.

Up until last week, Beam was largely immune to this problem, with the exception of Knob Creek a few years ago, which they managed to turn into a successful PR campaign. And really, they probably don't have a choice with Maker's, although I'll bet they're wishing they'd started that 3rd expansion.

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Originally Posted by Brisko

...Heaven Hill is a little more targeted, changing the Evan Williams line but not Elijah Craig, for instance...

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Yeah, good ole EC18 as dependable as always. Still 18 years, still $45. :rolleyes:

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Originally Posted by Lazer

Yeah, good ole EC18 as dependable as always. Still 18 years, still $45. :rolleyes:

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Wow, it's been a long week:blush:.

I'll bet they're wishing they'd dropped the proof sooner.

As much as I'd love to see it, increasing production just isn't that likely. Figuring 6 months for approvals, 18 months for construction, 3 for testing/hiring, and then 6-10 years for aging, We'd be looking at the 2020's before we saw a real increase on the shelf. Also, I don't think we're looking at the micros through the correct lens. While most of then aren't making premium products right now, in aggregate, they still represent a lot of idle still capacity that could be turned on instantly. I don't know which brands they will be, but a handful probably will take off. A big producer could buy that brand, purchase some idle capacity to increase distirubtion of their new brand (after aging), and improve their sales much faster than through factory expansion.

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Originally Posted by Bourbon Boiler

As much as I'd love to see it, increasing production just isn't that likely. Figuring 6 months for approvals, 18 months for construction, 3 for testing/hiring, and then 6-10 years for aging, We'd be looking at the 2020's before we saw a real increase on the shelf. Also, I don't think we're looking at the micros through the correct lens. While most of then aren't making premium products right now, in aggregate, they still represent a lot of idle still capacity that could be turned on instantly. I don't know which brands they will be, but a handful probably will take off. A big producer could buy that brand, purchase some idle capacity to increase distirubtion of their new brand (after aging), and improve their sales much faster than through factory expansion.

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Someone who knows more than me could confirm or refute this, but I think in general, still capacity is not the issue in Kentucky. Warehouse space is.

I'd be interested in knowing that. Warehouse space would seem to be a little easier to deal with. I know there are fire concerns behind the spacing, and the bourbon fungus is making too many headlines these days, but I'd think another couple of rickhouses for the big boys would be simple.

A lot of the distilleries are building about one new rickhouse a year. But it takes years to see the benefits from a new rick house.

Beam could fill a warehouse in short order with same recipe wheat whisky.

I'd rather have distilleries raise prices and perhaps use cyclical shortages to take some of the pressure off than reduce proof ore age.
I understand with Maker's they can't really have cyclical shortages of their flagship bottling without hurting themselves. But I shop for whiskey the way I shop for any other grocery item; I don't shop every day or even every week, I keep lots of supplies on hand and rotate the most recently purchased stock to the back of the cupboards/the freezer, I shop the sales and though I have my favorite brands/bottlings I'm not 100% loyal to any of them. I rarely run out of anything/ or any of my favorite bottlings I just drink something else when supplies get low and re-up on those bottlings when I catch a good deal or when they are released (for those things like ORVW 10 107)

I'd venture to guess most of us are like that, at least when it comes to bourbon. I'd also venture to guess the average consumer is not that way. We are not only different in what bottlings we buy the most of, but I think we're also different in our whole approach.