Higher Bourbon Prices Are Coming.

[cowdery]

Shanken reported today that Beam Inc. has raised prices on its bourbon brands and could take a second round of U. S. price hikes yet this year. The announcement was made by Beam North America president Bill Newlands. The Beam bourbons (Jim Beam, Maker’s Mark, Knob Creek, etc.) will probably go up the most. Newlands cited rising corn prices in the U. S. as the primary reason. Scotch, tequila, and cognac prices may also rise. Vodka probably won't (too competitive).

Nobody likes to pay more but this is another indication of the industry's robust good health, and that's good for everybody.

[bgageus]

Interesting relation to corn prices, but the bourbon I am buying now has not been corn for a while.

[callmeox]

Interesting relation to corn prices, but the bourbon I am buying now has not been corn for a while.

Along with many other things, we pay replacement cost. :smiley_acbt:

[bgageus]

Along with many other things, we pay replacement cost. :smiley_acbt:

On the brighter side, my bunker just became more valuable.

[JayMonster]

Interesting relation to corn prices, but the bourbon I am buying now has not been corn for a while.

Remember the recent thread about LIFO (Last In First Out) accounting practices?

[MissinER101]

Interesting relation to corn prices, but the bourbon I am buying now has not been corn for a while.

:confused: :confused:

Enlighten me...... How can it be bourbon if it is not more than 51% corn

[cowdery]

:confused: :confused:

Enlighten me...... How can it be bourbon if it is not more than 51% corn

It hasn't been corn since it was transformed into alcohol, probably six to ten years ago, or more.

[Jwilly019]

Remember the recent thread about LIFO (Last In First Out) accounting practices?

Except Beam is already using FIFO, so they shouldn't be seeing any additional costs from that perspective.

[Hershmeister]

Another reason to hate ethanol

[ShewDawg]

Another reason to hate ethanol

[JayMonster]

Actually, it sounds like corn prices is more of an excuse. Read what Newmark had to say... They are seeing an improving US economy as an "opportunity" to raise prices,

"We are watching it very closely and any chance we get to do pricing, we're doing it. At the moment we're doing it in targeted ways, places where we feel we have strength and where those opportunities present themselves, or whether there's cost structures that we'd like to recoup," Newlands said.

[Clavius]

Interesting. Working on the retail side I had heard that Maker's was going up in price. But I didn't know that all of Beam's brands were going to do the same.

[Lazer]

They're raising the price because they are raising the price, it has nothing to do with the price of corn in the US, or tea in china. Global demand is up for whiskey, so the price has to follow. We're gonna see more of this as the Asian and other foreign markets open up to American whiskey. If you want to blame someone for this blame yourselves for shooting your mouths off on the internet and telling the whole world how great our bourbon is. Just shut up and let the Chinese drink JD black and JB white and just tell them everything else sucks. It'll be our secret.

The truth is, the only reason demand is up for bourbon is because of the global financial crisis. Bourbon is cheap. At least it was. People start drinking bourbon when they lose their job and their money and their friends and they can't afford to do anything else, so they go down to the liquor store and buy a bottle of the cheap brown stuff to dull their pain and end up liking the stuff, so they realize that its not so bad to be poor. Oh yeah, when I was rich I was taking vacations to the Islands, drinking bacardi silver in a strawberry daqueri with women in bikini's on the white sand, and I didn't really care about what I was drinking. now I'm alone in my apartment but it isn't so bad because I can at least afford a bottle of this sweet brown nectar that I thought was just going to make me pass out and forget about my misery but now l have something to live for. I'm a bourbon enthusiast. I get to try all sorts of new bourbon flavors like caramel, of toffee, or butterscotch, all while getting wasted for about $.50 a pour. Life is good.

[Bourbon Boiler]

I would guess that bourbon makers are engaged in a variety of risk managment practices in regards to grain purchases (forward buying, futures trading, put options, etc.) to reduce volatility. It can't hold out forever, but it's doubtful that it's had much of an effect on the bottom line to this point.

[cowdery]

I was a little surprised he even said it. For one thing, he said they aren't raising vodka prices because the vodka market is so competitive, but there is more corn in a bottle of vodka than there is in a bottle of bourbon, so take it with a grain of salt. You want to say, "corn prices, Bill? Really? Corn prices? we're not children, Bill."

[Fpst]

They're raising the price because they are raising the price, it has nothing to do with the price of corn in the US, or tea in china. Global demand is up for whiskey, so the price has to follow. We're gonna see more of this as the Asian and other foreign markets open up to American whiskey. If you want to blame someone for this blame yourselves for shooting your mouths off on the internet and telling the whole world how great our bourbon is. Just shut up and let the Chinese drink JD black and JB white and just tell them everything else sucks. It'll be our secret.

The truth is, the only reason demand is up for bourbon is because of the global financial crisis. Bourbon is cheap. At least it was. People start drinking bourbon when they lose their job and their money and their friends and they can't afford to do anything else, so they go down to the liquor store and buy a bottle of the cheap brown stuff to dull their pain and end up liking the stuff, so they realize that its not so bad to be poor. Oh yeah, when I was rich I was taking vacations to the Islands, drinking bacardi silver in a strawberry daqueri with women in bikini's on the white sand, and I didn't really care about what I was drinking. now I'm alone in my apartment but it isn't so bad because I can at least afford a bottle of this sweet brown nectar that I thought was just going to make me pass out and forget about my misery but now l have something to live for. I'm a bourbon enthusiast. I get to try all sorts of new bourbon flavors like caramel, of toffee, or butterscotch, all while getting wasted for about $.50 a pour. Life is good.

[wmpevans]

Source: Reuters - http://www.reuters.com/article/2012/...82C14220120313

Surprizing line in this Reuters story:

27% rise in sales of Basil Hayden.

Maybe I can sell my 2/3rd's full bottle of BH that's been open for almost a year that I don't ever seem to want to go to.

The only time it gets hit is when people come over; see it; and say

"I've always wanted to try that"

[Special Reserve]

I was a little surprised he even said it. For one thing, he said they aren't raising vodka prices because the vodka market is so competitive, but there is more corn in a bottle of vodka than there is in a bottle of bourbon, so take it with a grain of salt. You want to say, "corn prices, Bill? Really? Corn prices? we're not children, Bill."

It's similar to the price of diet pop going up when the price of sugar went up.

The more telling signs ares not seeing any premium quality bourbon on the shelves and the prices that they are going for on auction sites.

Bunker up if you can.

[cigarnv]

Charge what the market will bear.... just good business...

[JayMonster]

Charge what the market will bear.... just good business...

Fair enough, and granted this was said primarily for the investor set, but a little more tact than saying you are going to raise prices, "any chance we get" is also good business sense.

[weller_tex]

I am not a Beam hater as are many around these parts..JBW on the rocks in a pinch is fine, JBB is a good and a good deal. MM is good..

However, JBW is really not worth what they are charging already compared to competitors. You raise the price and I think you start losing customers, unless all the competitors follow suit.

It's a fine line between raising prices when times are good and not alienating the customers that made the times good.

[StraightNoChaser]

On the bright side of things, dusty bottles on shelves are the same price they were 10-20 years ago :grin:

[Lazer]

I guess I'll just have to go to the liquor store with my shotgun and ski mask, and when the clerk starts to hand over the cash I'll tell him no no no, just give me the Knob Creek and the Booker's and nobody will get hurt.

[StraightNoChaser]

I guess I'll just have to go to the liquor store with my shotgun and ski mask, and when the clerk starts to hand over the cash I'll tell him no no no, just give me the Knob Creek and the Booker's and nobody will get hurt.

That's basically what I want to do to the crazy Cambodian lady who won't sell me her 50's/60's era OWA :hot:

[moose]

Should be getting new Beam, KC, MM, and more in today, I'll have to check and see if the prices have taken a jump yet here or not. Hoping not, they are high enough already.