The global whiskey market was the third largest segment in the global spirits market, accounting for 11.57% of the global spirits market in 2014. But where stands Bourbon?
The Bourbon Market Opinions
U.S. distilled spirits exports topped $1.5 billion in 2013. Kentucky Bourbon and Tennessee whiskey made up more than $1 billion of that amount, making it the largest export category among all U.S. distilled spirits.
“The demand for American whiskey — including Bourbon and Tennessee whiskey and rye — is booming in the U.S. and across the globe” Frank Coleman, Senior Vice President for the Distilled Spirits Council in Washington, D.C.
“Bourbon distilleries are moving forward on plans to begin tackling the current Bourbon shortage. The Bourbon sector as a whole showed strong growth in 2016, adding upwards of $8.5 billion to Kentucky’s economy and generating $825 million in tax revenue for the state according to the Kentucky Distillers’ Association.
The Kentucky Bourbon industry generates some 17,500 jobs which is expected to grow as a number of new distilleries are under development to catch up with current demand. Overall, American whiskey volumes were 21 million cases in 2016 representing an increase of 6.8 percent and an increase in revenues of 7.7 percent.”
“The continued growth of the spirits sector clearly demonstrates that adult consumers’ taste for and interest in premium distilled spirits, across all categories, is trending upward.” Kraig R. Naasz, Distilled Spirits Council president and CEO
The Craft Beverage Modernization and Tax Reform Act includes a reduction in the Federal Excise Tax (FET) from $13.50 to $2.70 for the first 100,000 proof gallons of spirits, an 80% reduction in the FET for craft producers. If this Bill passes Craft distilleries would face significantly higher margins.
“We see craft spirits, along with locally oriented mixology, as a key trend for the future. It will definitely be a growth driver for us.” Wayne Chaplin, CEO Southern Glazer’s