Sales of bourbon and Tennessee whiskey up throughout 2014

Sales of Kentucky bourbon and Tennessee whiskey were up throughout 2014, making it the second year in a row the popular spirits’ sales have increased. U.S. sales for bourbon and whiskey rose by 9.6 percent, increasing revenues generated to over $2.7 billion according to the Distilled Spirits Council. Exports of the two spirits are reported to have topped $1 billion. The domestic numbers were taken from direct sales from producers and suppliers to wholesalers. 2014’s gains mirror the gains from 2013 for bourbon and whiskey.

The developing maturity of the consumer palette, the distinctive flavor profiles of Kentucky Bourbon and Tennessee whiskey, the return to popularity of the cocktail, and the decreasing popularity of vodka are all factors directly contributing to the increased revenue.

Consumers have shown increased interest in super premium products from distillers causing a 19.2 percent rise in that category. Super premium products are aged longer, develop intricate flavor profiles, and are sold for higher prices. Kentucky bourbon and Tennessee whiskey are produced and aged using similar methods, the difference being that Tennessee whiskeys are filtered through charcoal, mellowing the taste before going into the barrels for aging. “Consumers in the U.S. are increasingly enjoying bourbons and whiskeys because of their distinct flavor profiles and American heritage,” says the Distilled Spirits Council President, David Ozgo.

In the same two year period vodka sales have shown a decline due to market saturation and the rise of bourbon and whiskey. Once viewed as the perfect liquor for mixing into cocktails because of its lack of flavor, drinkers have now turned to whiskey and bourbon because of their more intense depth of flavor. Sales of the popular Smirnoff brand saw an 18 percent decline despite offering over thirty different flavors. Wholesalers now offer smaller, local brands of vodka at lower prices which has also contributed to the sales decline of premium vodka brands such as Absolut and Grey Goose.

Kentucky boasts that 95 percent of the world’s bourbon supply is produced in that state, claiming they currently have over 5.3 million barrels maturing. That would mean barrels maturing outnumbers the state’s population. “We are on the cusp of a golden age of Kentucky bourbon,” declares Eric Gregory, President of the Kentucky Distillers Association. Distillers and consumers would seem to agree. Distillers are able to age bourbon and whiskey longer than other spirits, increasing their flavor and quality which in turn increases it’s value to consumers who do not seem to mind paying more for better quality.

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