More Heaven Hill

[T Comp]

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]

I'll drink to that.

[mark fleetwood]

Can't wait for the glut of 2018!

[Phil T]

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]

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]

I'm thinking 10 or 12 year BIB would kick some ass

[Rutherford]

Henry McKenna is a 10 year BiB they already have on the market for cheap

[Phil T]

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

Edited March 8, 2013 by Phil T

[cowdery]

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]

5.3 million gallons. I just want to sit and think about that for awhile.

[BFerguson]

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]

Capital idea B . . .

[black mamba]

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]

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]

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]

5.3 million gallons. I just want to sit and think about that for awhile.

That is a lots of rain and corn.

[squire]

And some elbow grease Tom but hey, you guys could crank that out in what, three months, tops?

[tmckenzie]

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]

Well keep up the good work then.

[TheNovaMan]

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]

I've been avoiding the Chinese as much as I possibly can for years.

^ A little creative editing for your enjoyment.

[squire]

I'm encouraged Heaven Hill is even considering expansion which bodes well for the industry prospects generally.

[cowdery]

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.

Edited March 11, 2013 by cowdery

[TheNovaMan]

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]

Trying to avoid tying up too much capital for the next six years.