cowdery Posted August 7, 2009 Share Posted August 7, 2009 I wish KBD nothing but the best but, realistically, if it has taken them 20 years to get this far, who is to say it won't take another 20 before they fire it up, and they have for 20 years been saying it would be happening "soon," so that's another consideration.And there is one more thing. The biggest challenge all whiskey distilleries face is financing their production--not their physical plant but their actual production. The reasons are obvious. Although payment of the federal excise tax is deferred, it is owed (hence a liability) as soon as the whiskey is made. You have annual state taxes on the aging inventory itself. Plus your ability to recover all of your costs and realize your profit is also deferred for four to six years or more, plus you have to keep producing, day in and day out, for all that time with little or no money coming in. If they expect to accomplish that without financing, then they better be building up a huge cash reserve (and maybe they are) along with building their physical plant. I hope they surprise me, but the odds look pretty long. Link to comment Share on other sites More sharing options...
jburlowski Posted August 7, 2009 Share Posted August 7, 2009 I wish KBD nothing but the best but, realistically, if it has taken them 20 years to get this far, who is to say it won't take another 20 before they fire it up, and they have for 20 years been saying it would be happening "soon," so that's another consideration.And there is one more thing. The biggest challenge all whiskey distilleries face is financing their production--not their physical plant but their actual production. The reasons are obvious. Although payment of the federal excise tax is deferred, it is owed (hence a liability) as soon as the whiskey is made. You have annual state taxes on the aging inventory itself. Plus your ability to recover all of your costs and realize your profit is also deferred for four to six years or more, plus you have to keep producing, day in and day out, for all that time with little or no money coming in. If they expect to accomplish that without financing, then they better be building up a huge cash reserve (and maybe they are) along with building their physical plant. I hope they surprise me, but the odds look pretty long.Which is one of the reasons why these guys typically make vodka first... trying to get some cash flow while the good stuff is aging. Link to comment Share on other sites More sharing options...
Bourbon Geek Posted August 7, 2009 Share Posted August 7, 2009 I am totally impressed with the guys at KBD. They have never waivered from their initial intent to eventually make their own spirits. I have watched them plug along for years and years, sometimes slow ... sometimes not so slow ... as their money would allow. Lately, I have been showing up quite frequently ... and, barring some major unforseen issue, I believe they will most likely be on stream before the Bourbon Festival this year ... and will have done it without assuming debt in the process.Way to go guys!!! Link to comment Share on other sites More sharing options...
Josh Posted August 8, 2009 Share Posted August 8, 2009 I am totally impressed with the guys at KBD. They have never waivered from their initial intent to eventually make their own spirits. I have watched them plug along for years and years, sometimes slow ... sometimes not so slow ... as their money would allow. Lately, I have been showing up quite frequently ... and, barring some major unforseen issue, I believe they will most likely be on stream before the Bourbon Festival this year ... and will have done it without assuming debt in the process.Way to go guys!!!Exciting news Dave! Thanks for sharing it! Link to comment Share on other sites More sharing options...
BBQ+Bourbon Posted October 6, 2009 Share Posted October 6, 2009 I'd not considered the impact that the corn used in a mashbill could wield on the finished product but it obviously would have a drastic influence. What's called 'dent' corn is typically dried on the stalk and normally used for livestock feed. Yellow corn is the typical sweet corn seen in grocery stores and white corn has a sweeter, more faint flavor. Being from a farm town, we never ate dent corn. Wish I had.Clearly, the corn used in the bill would influence the outcome. Interesting. Link to comment Share on other sites More sharing options...
ILLfarmboy Posted October 6, 2009 Share Posted October 6, 2009 I'd not considered the impact that the corn used in a mashbill could wield on the finished product but it obviously would have a drastic influence. What's called 'dent' corn is typically dried on the stalk and normally used for livestock feed. Yellow corn is the typical sweet corn seen in grocery stores and white corn has a sweeter, more faint flavor. Being from a farm town, we never ate dent corn. Wish I had.Clearly, the corn used in the bill would influence the outcome. Interesting.Never ate field corn? You gotta get it when it is on the immature side. If it has already turned more yellow than white it is too mature.It ain't peaches and cream sweet corn but it is eatable. Link to comment Share on other sites More sharing options...
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