Bad News, Everyone!

There ain’t enough bourbon in Kentucky:

American consumers may have pocketed most of their gas savings thus far, but there are two discretionary items where they aren’t holding back spending: bourbon and Tennessee whiskey. U.S. revenues for both spirits climbed by 9.6% last year, or 46.7% over the past five years, to $2.7 billion in 2014. More importantly, higher end brands continue to drive this growth. A stronger dollar in the back half of 2014 didn’t stop foreigners from enjoying American whiskey either: exports grew to a record of $1.02 billion.

So what’s contributing to this surge in demand? We reached out to distillers in the industry, who attributed it to the cocktail culture, improving quality, and an influx of craft/small distilleries. Domestic and foreign consumers value bourbon’s authenticity and American heritage, while product innovation with flavored whiskeys helped expand the consumer base to younger adults and women.

As an economist and bourbon coin..con…um, aficionado it’s easy to see that my favorite drink is going to be more expensive in the future.  Ah well, it’s probably a good thing

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Categories: Bad News Everyone!, Econ 101, Thinking like an economist

Tags: , , , , ,

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