Bourbon: The New Craft Beer?
We’ve spent a lot of time and screenspace chatting about craft beer valuations and the the state of U.S. craft brewers this month. And why not? It’s a sizable industry (3000 brewers!), there are fascinating beer industry dynamics going on, and its Oktoberfest! But just when we think we have a handle on things a new fun tidbit piques our interest and we are off and running.
To that end I give you bourbon – the new craft beer. Check out this chart from the Atlantic on the growth at the upper end of price points for US Bourbon:
Here is another fascinating bourbon tidbit: you know that coveted bottle of 23-Year Old Elijah Craig Single Barrel you’ve been eying? Well, you realize when it was bottled, right? That’s right. 1986. So back way back yonder some fellas wrapped up watching an episode of Dallas or the Dukes of Hazard one evening, got to chatting, and decided to produce some bourbon. In 2014.
So clearly there is an issue of scarcity. In order to satisfy the market for high end, aged bourbon, distillers are marketing scarce resources to interested consumers. The pricing reflects such. It will be interesting to how this interplay of industry capacity and consumer demand play out into the future.
In the meantime, we’ll leave you on this crisp fall day with a little reading from our friends at Forbes, and this: