In the midst of the drought problems in California, the nation (and globe) faces another liquid shortage: whiskey. As
Esquire magazine recently pointed out, in the 90's and early 2000's, consumers used their wallets to express their love of vodka. While that spirit is still the reigning champion of boozy beverages in America, whiskey and craft distilled liquors have been making serious headway in recent years. Unsurprisingly given the growing popularity of craft and prohibition-era cocktails, whiskey demand has spiked, sucking up reserves left over from slower sales in previous years.
We first heard about this potential shortage last year, when whiskey producers, such as Maker's Mark, announced that they would be modifying their formulas (read, watering down) in order to keep up with consumer demand for the brown spirit. Whiskeys cannot be produced quickly in most cases, unlike other spirits such as vodka and gin, which do not require aging. And unlike wine, which can be bottle aged,
whiskey stops aging once it has been bottled, leaving the task of maturing the spirit up to the manufacturer and their wood barrels in house (also reportedly in short supply). Due to the (sometimes decades long) delay between initial distillation and distribution, whiskey producers cannot simply ramp up production to meet immediate demands. This becomes a major problem for distributors given the volatile nature of beverage trends. While historically, whiskey has always been in demand, it experiences popularity swings just the same as other liquors. That means that while Vodka producers can simply pump out more bottles to meet demand, producers of aged spirits have to predict trends far further in advance.
The premium and ultra-premium categories are the sectors experiencing more demand than supplies can meet, including many
12, 15 and 18 year bottlings. As the
Esquire article notes, most revered distilleries and their respective masters do not readily give out information about current stock - what is being aged and what levels of supply are available - which leaves the business of estimating up to industry experts, who watch prices and sales. Prices for upmarket and aged whiskeys have soared in recent years.
Esquire, for example, points out that in 2007, Pappy Van Winkle 15 cost just under $50 per bottle. Now, prices for the 15 year beverage are hovering at just over $950. Another example from the article shows an enormous upswing in American whiskey exports, up from
$400 Million in 2002 to a whopping $1 Billion in 2012. Domestic blends are not the only ones facing increased demand, as prices for Irish, Scotch, and Japanese whiskeys are also growing in popularity, and seeing the same kinds of spikes in price.
For restauranteurs and bar owners, how has the increase in whiskey demand affected your drinks business? Are customers rushing in for your latest Manhattan-esque cocktail, or have increased whiskey costs hurt your bottom line? Let us know via Facebook, Google+, LinkedIn and Twitter.
Source:
Esquire,
Image Credit (Flickr)
Tablebases.com
