Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

You can (partially) thank the housing collapse for the bourbon shortage
Business Insider ^ | 5-12-15 | Portia Crowe

Posted on 05/12/2015 9:33:29 AM PDT by smokingfrog

We've reported before on the Great Bourbon Shortage that's coming, and the skeptics who don't think it's real.

Now we have some more context on what could be contributing to the shortage: the housing crash.

Let's take a step back.

You probably know that there's been a huge uptick in the popularity of whiskey in America – especially craft whiskeys and, in particular, bourbon. Demand has surged and the number of distillers has ballooned.

Now, understand that bourbon, a specific type of American whiskey, must be aged for two years in brand new oak barrels. Usually it's aged in white oak, a hardwood native to the eastern US. While Scotch and other liquors can be aged in reused barrels, bourbon cannot.

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events; US: Kentucky
KEYWORDS: oak
Navigation: use the links below to view more comments.
first 1-2021-4041-6061-73 next last

1 posted on 05/12/2015 9:33:29 AM PDT by smokingfrog
[ Post Reply | Private Reply | View Replies]

To: smokingfrog

more jobs for ISIS???


2 posted on 05/12/2015 9:35:39 AM PDT by MeshugeMikey ("Never, Never, Never, Give Up," Winston Churchill ><>)
[ Post Reply | Private Reply | To 1 | View Replies]

To: smokingfrog

The people have no whiskey!Let them drink vodka.


3 posted on 05/12/2015 9:38:50 AM PDT by Farmer Dean (stop worrying about what they want to do to you,start thinking about what you want to do to them)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Farmer Dean
Them's fightin' words.

I need to get some put back, just in case. ;)

/johnny

4 posted on 05/12/2015 9:40:43 AM PDT by JRandomFreeper (gone Galt)
[ Post Reply | Private Reply | To 3 | View Replies]

To: smokingfrog

I know if my house collapsed I’d prolly be drinkin’ a lotta burbin...


5 posted on 05/12/2015 9:41:19 AM PDT by navyguy (The National Reset Button is pushed with the trigger finger.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: smokingfrog

From the article: “So here’s the problem: ever since the house market’s collapse, there’s been a slowdown in white oak logging . . .”

This is illogical. Why would a slowdown in the housing market affect people who harvest wood for barrels. I would think that this would actually bring down the cost of barrels as loggers look for new markets.


6 posted on 05/12/2015 9:51:50 AM PDT by Steven Scharf
[ Post Reply | Private Reply | To 1 | View Replies]

To: Farmer Dean

I noticed the Price of Knob Creek was up about 25% from the last bottle I purchased.

I do not understand how Scotch producers can age their product in used whiskey barrels, but bourbon makers like Jim Beam/Knob Creek need brand new barrels?

There was a 60 minutes episode a couple weeks back about Scottish whiskey. It showed them unloading a container of used barrels that said Jim Beam on them.


7 posted on 05/12/2015 9:52:29 AM PDT by woodbutcher1963
[ Post Reply | Private Reply | To 3 | View Replies]

To: smokingfrog; alarm rider; stump56; bcsco; PJ-Comix; kimmie7; MissDairyGoodnessVT; Paul Heinzman; ...

Bourbon ping


8 posted on 05/12/2015 9:54:50 AM PDT by Cletus.D.Yokel (Catastrophic Anthropogenic Climate Alterations: The acronym explains the science.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Farmer Dean
Let them drink vodka.

May I suggest my favorite, from my hometown...


9 posted on 05/12/2015 9:56:44 AM PDT by ctdonath2 (Hillary:polarizing/calculating/disingenuous/insincere/ambitious/inevitable/entitled/overconfident/se)
[ Post Reply | Private Reply | To 3 | View Replies]

To: smokingfrog

People will be willing to go out and cut down any kind of tree if you pay them.


10 posted on 05/12/2015 9:57:52 AM PDT by Buckeye McFrog
[ Post Reply | Private Reply | To 1 | View Replies]

To: smokingfrog

Nice garage!


11 posted on 05/12/2015 9:59:03 AM PDT by VanShuyten ("a shadow...draped nobly in the folds of a gorgeous eloquence.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: woodbutcher1963

By definition, Bourbon must be aged in new charred barrels. If the barrel isn’t new, then the beverage is not Bourbon.


12 posted on 05/12/2015 10:00:35 AM PDT by bagman
[ Post Reply | Private Reply | To 7 | View Replies]

To: Steven Scharf

I don’t see the connection either. White Oak is not commonly used in home construction, at least not around here.


13 posted on 05/12/2015 10:01:35 AM PDT by smokingfrog ( sleep with one eye open (<o> ---)
[ Post Reply | Private Reply | To 6 | View Replies]

To: woodbutcher1963
I do not understand how Scotch producers can age their product in used whiskey barrels, but bourbon makers like Jim Beam/Knob Creek need brand new barrels?

There are laws which require that if they want to call it Bourbon. The mash also has to be comprised of 51% corn and aged at least 4 years. They don't have to follow those rules, but if they don't they can't call it Bourbon.

14 posted on 05/12/2015 10:02:27 AM PDT by Malone LaVeigh
[ Post Reply | Private Reply | To 7 | View Replies]

To: smokingfrog
bourbon, a specific type of American whiskey, must be aged for two years in brand new oak barrels.

That is a legal minimum. I don't even know who sells 2 year bourbon, though I'm sure there must be.

The barrels are new, but they must be fire charred on the inside before they can be used. That's part of what makes bourbon superior to whiskey, along with the highly meticulous and varied aging.

There will not be a bourbon "shortage", there will be more costly bourbon. I switched from my favorite Elija Craig 12 year (up 50% in the nine years I've lived in Kentucky. Partly because the government keeps raising the taxes) to Trader Joes brand which is made in Louisville. It's not as good, but it's one of the best $15 bourbons I've tasted.

There are probably a couple hundred rick houses around here, each holding 20K barrels of 53 gallons. And they're all full.

An interesting article on rick houses:

http://www.whiskeyprof.com/how-a-traditional-rackhouse-works-small-batch-single-barrel/

If you've never experienced it, the fragrance in a rick house is heavenly (think Heaven Hill which includes that as part of their tour).

15 posted on 05/12/2015 10:06:57 AM PDT by ChildOfThe60s (If you can remember the 60s, you weren't really there....)
[ Post Reply | Private Reply | To 1 | View Replies]

To: woodbutcher1963
I do not understand how Scotch producers can age their product in used whiskey barrels, but bourbon makers like Jim Beam/Knob Creek need brand new barrels?

For the same basic reason that you can't make Scotch in Kentucky: the definition of the term is clear, if a bit arbitrary. If you make something other than what the definition covers, you're making something not covered by the term. Bourbon is made in the US Southern region, in new charred oak barrels, and served un-filtered. If you use used barrels, or filter it, there will be a change in taste making it something other than bourbon; Jack Daniels is a whiskey made in TN using new oak barrels, but because it's charcoal filtered it isn't bourbon (and does taste different).

16 posted on 05/12/2015 10:07:29 AM PDT by ctdonath2 (Hillary:polarizing/calculating/disingenuous/insincere/ambitious/inevitable/entitled/overconfident/se)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Steven Scharf

The article states that many of the loggers that supplied white oak logs went out of business in the great recession.
The loggers don’t just go out and cut down White Oak trees. They log the trees in the area. The demand for timber in general fell during the recession. However, the demand for Hardwoods such as oak did not go down as much as the demand for softwoods like pine.

The tree species go to various sawmills based on price/demand. For example, I had my property in NH logged a couple years back. The Eastern White Pine timber went to one sawmill. The red oak, black oak, maple and birch went to another sawmill. The Eastern Hemlock went to a company that ships them to China. The chips/tops went to a cogeneration plant that burns them to make electricity.

The problem is more likely the availability of white oak at the price the barrel manufacturers are willing to pay for the lumber. If the price of the barrel goes up, they can pay more for the lumber, which means the sawmill can pay more for the logs. Which IF the price the sawmill pays goes up, supply of timber will go up. ECON 101, capitalism at work.


17 posted on 05/12/2015 10:08:44 AM PDT by woodbutcher1963
[ Post Reply | Private Reply | To 6 | View Replies]

To: woodbutcher1963

Dem’s da rulez:

The Federal Standards of Identity for Distilled Spirits (27 C.F.R. 5) state that bourbon made for U.S. consumption must be:

Produced in the United States
Made from a grain mixture that is at least 51% corn
Aged in new, charred oak barrels
Distilled to no more than 160 (U.S.) proof (80% alcohol by volume)[17]
Entered into the barrel for aging at no more than 125 proof (62.5% alcohol by volume)
Bottled (like other whiskeys) at 80 proof or more (40% alcohol by volume)

Bourbon has no minimum specified duration for its aging period. Products aged for as little as three months are sold as bourbon. The exception is straight bourbon, which has a minimum aging requirement of two years. In addition, any bourbon aged less than four years must state the age of the spirit on the bottle.

Bourbon that meets the above requirements, has been aged for a minimum of two years, and does not have added coloring, flavoring, or other spirits may (but is not required to) be called straight bourbon.

Bourbon that is labeled as straight that has been aged under four years must be labeled with the duration of its aging.
Bourbon that has an age stated on its label must be labeled with the age of the youngest whiskey in the bottle (not counting the age of any added neutral grain spirits in a bourbon that is labeled as blended, as neutral-grain spirits are not considered whiskey under the regulations and are not required to be aged at all).

Bourbon that is labeled blended (or as a blend) may contain added coloring, flavoring, and other spirits (such as un-aged neutral grain spirits); but at least 51% of the product must be straight bourbon.


18 posted on 05/12/2015 10:09:00 AM PDT by centurion316
[ Post Reply | Private Reply | To 7 | View Replies]

To: Steven Scharf

“Why would a slowdown in the housing market affect people who harvest wood for barrels.”

1. Volume. Loggers won’t show up for a stem or two, need at least a full truck load.
2. Looking at the barrel staves, that wood might be a by-product of cutting dimensional pieces for the housing market. Therefore a lot cheaper than cutting down entire trees.

We have a small tree farm and can’t hire loggers. Not enough volume, and also yada yada.

We have an Amish lumber yard nearby, less than 10 miles, but we have to cut and haul and we don’t have the equipment and truck and etc.

If we had any small pieces of white oak maybe I would rent a trailer and haul them to the distillers with my SUV.


19 posted on 05/12/2015 10:09:15 AM PDT by AMDG&BVMH
[ Post Reply | Private Reply | To 6 | View Replies]

To: bagman

Thanks for the definition. You left out it is only Bourbon if it is made in Kentucky. Therefore, Jack Daniels is NOT bourbon.


20 posted on 05/12/2015 10:10:33 AM PDT by woodbutcher1963
[ Post Reply | Private Reply | To 12 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-6061-73 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson