Quote Originally Posted by cowdery
It's just another revenue stream. They're in the business of making and selling whiskey. This is just another way to sell their product.

Only Heaven Hill does it as a standard part of their business, but everyone will sell bulk whiskey under the right circumstances. What are the right circumstances? (1) The distiller doesn't need it to fill existing demand for their brands, and (2) there is someone willing to buy it for a profitable sum.

Part of the reason the industry needs bulk sales is because of the long lead time necessary for production planning, due to the aging cycle. A distiller sells its bottled products via orders from distributors. It's good to have enough product to fill all the orders, but that probably means you have some left over. (Better that than not having enough.) Having another way to sell it is good business.
Australia has quite a few lables that are sold in this way..... (even Jim Beam White Label is shipped here in barrels and bottled at the lower proof of 37.5%)
Most noteable of these (I think) is Cougar bourbon. I think I read somewhere that this comes from Wild Turkey? Does anyone know for sure?