Bourbon Economics

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Has anyone seen a breakdown of where the $20 we spend on a bottle of bourbon goes? IOW, how much to the retailer, how much to the distributor, packaging and shipping, taxes, raw materials, and finaly, how much to the producer/distillery? I've seen it for other consumables (wine, for example) and am always suprised to see how much the retailer and the distributor gets and how little the producer gets. Just curious, Thanks.

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[Bob]

DB,

I don't know the full break-down, but I've always heard people from the industry say that a HUGE percentage of the cost of a bottle goes to TAXES.

[mickblueeyes]

According to Jimmy Russell in the last issue of Malt Advocate, 60-65% of the cost of whiskey is taxes.

[ratcheer]

According to Jimmy Russell in the last issue of Malt Advocate, 60-65% of the cost of whiskey is taxes.

With a few more dollars going to taxes in Alabama.

Tim

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With that much going to taxes, it doesn't leave much for the producer, the distributor and the retailer. For example, a $10 bottle gives $6 to the tax man. That leaves $4 for the retailer, distributor and finally the producer. You have got to move a lot of cases to make any money at any level. Maybe now I know why the Bourbon shelf is small at my local retailer while the wine racks go forever.