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Surge in Bourbon Production

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Published on : Aug 19, 2014

America’s bourbon whiskey manufacturer, Kentucky, has taken a decision on hoarding large stockpiles of bourbon whiskey. According to sources, distillers are stocking up the huge quantities of bourbon even before the demand for the same has arisen in the market. 

This step of excess production involves a certain risk, but as soon as the market demand for this dominates the market, the huge supply could prove to be highly lucrative for all the big and small companies. And not tapping the market demand would not only leave bourbon manufacturers with huge stocks of the same but would also pose risks on future production especially on the popular craft distilleries. According to the president of the Kentucky Distiller’s Association, the bubble burst for bourbon whiskey is not likely to take place any time soon. 

Large and popular companies dealing in bourbon manufacturing are relying heavily on the demand generated in countries like the US and China which have developed a taste for bourbon whiskey. Bourbon whiskey needs to be matured in barrels of charred oak for at least two years.  

The demand for this is such in the market that in the last fifteen years, the production has gone beyond 150% in Kentucky. 

This whiskey which was once considered to be a gentleman’s drink has now become a popular drink all across the globe. 

There is a demand and supply disparity that exerts extra burden on the distilleries.

The total revenue of Tennessee whiskey and bourbon reported a 10.2% rise and reached $2.4 billion in 2013.

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