Tariffs impacting bourbon production

4,358 Views | 58 Replies | Last: 1 day ago by Illustrious Potentate
MemphisAg1
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Hmmm... wonder if this translates into reduced bourbon prices? Could be an unintended benefit of tariffs.
Quote:

Jim Beam pauses production at main distillery as bourbon inventories rise

Popular Kentucky bourbon maker Jim Beam plans to pause production at its main distillery on January 1, according to the James B. Beam Distilling Co.

The decision comes as Kentucky faces an increasing supply of aging barrels and uncertainty over President Donald Trump's trade wars.

Whiskey and spirit makers have had to deal with retaliatory tariffs from the trade war sparked by Trump's tariffs, and with consumers pulling back on discretionary spending amid an affordability crisis.

The trade fallout between the United States and Canada has also impacted whiskey and spirit makers. In March, Canadian officials banned American spirits from stores, a rule that is still in place in some provinces.

https://finance.yahoo.com/news/jim-beam-pauses-production-main-224332038.html
An L of an Ag
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AG
WooHOO!! That would be awesome!
Yesterday
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I call BS. Easy excuse for the lack of alcohol sales. My wife works in the industry...people, especially the younger generations are not drinking anymore. It's hurting all alcohol sales.
BudAg97
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Yesterday said:

I call BS. Easy excuse for the lack of alcohol sales. My wife works in the industry...people, especially the younger generations are not drinking anymore. It's hurting all alcohol sales.


I can attest to this. I'm in the beer business and my wife is in the wine industry. Alcohol sales across the board are declining. Young people aren't going out and they are not drinking as much.
Pooh-ah95_ESL
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There is also so much more competition to the big brands now...
flown-the-coop
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Yea, this was already percolating, I mean being distilled, well before tariffs.

A spike during COVID followed by a reckoning that the masses were not meant to be drunken sailors.

Though some of us remain in more ship shape than others, so to speak.
flown-the-coop
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Pooh-ah95_ESL said:

There is also so much more competition to the big brands now...

It's mostly small guys closing shop these days. Power very much shifting back to the big dogs. They have capital to weather the lull on demand.
Mathguy64
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So they are cutting production on a product that won't be sold for a minimum of 4 years and a maximum of, well a lot longer than 4 years? For tariffs now?

Yeah I'm calling BS.
No Spin Ag
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flown-the-coop said:

Pooh-ah95_ESL said:

There is also so much more competition to the big brands now...

It's mostly small guys closing shop these days. Power very much shifting back to the big dogs. They have capital to weather the lull on demand.


True. Plus, they're probably also factoring the younger(idiotic) generation that just isn't much into drinking alcohol regardless of what type it is.
There are in fact two things, science and opinion; the former begets knowledge, the later ignorance. Hippocrates
flown-the-coop
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I cut back my drinking considerably once I elevated my Texas arse weed supply.

Not all kids are turning to pot though. Thankfully, many are shunning the weed, the hooch, and the tinder cooch for some good ol fashioned holy rollin.

More power to them. I am becoming more encouraged by the younger crowd than I have been in years.
bobbranco
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BudAg97 said:

Yesterday said:

I call BS. Easy excuse for the lack of alcohol sales. My wife works in the industry...people, especially the younger generations are not drinking anymore. It's hurting all alcohol sales.


I can attest to this. I'm in the beer business and my wife is in the wine industry. Alcohol sales across the board are declining. Young people aren't going out and they are not drinking as much.

Yo.
420.
Yo.
Kaiser von Wilhelm
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Don't people still drink when they're stressed? Or is this an indicator that the younger generation isn't actually as stressed and upset about everything (finances, global warming, trump, etc) as they claim while whining about how hard they have it...?

Stress in my life waxes and wanes, and bourbon intake swings along with it. Im doing my part keeping the bourbon industry going best I can.
bobbranco
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Take a gummy.

Burn a blunt.

Eat a brownie.

It's the trend.
BigRobSA
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BudAg97 said:

Yesterday said:

I call BS. Easy excuse for the lack of alcohol sales. My wife works in the industry...people, especially the younger generations are not drinking anymore. It's hurting all alcohol sales.


I can attest to this. I'm in the beer business and my wife is in the wine industry. Alcohol sales across the board are declining. Young people aren't going out and they are not drinking as much.

Username checks out!
Kashchei
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BudAg97 said:

Yesterday said:

I call BS. Easy excuse for the lack of alcohol sales. My wife works in the industry...people, especially the younger generations are not drinking anymore. It's hurting all alcohol sales.


I can attest to this. I'm in the beer business and my wife is in the wine industry. Alcohol sales across the board are declining. Young people aren't going out and they are not drinking as much.


Good! More for me then!
JamesPShelley
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nm
flown-the-coop
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BigRobSA said:

BudAg97 said:

Yesterday said:

I call BS. Easy excuse for the lack of alcohol sales. My wife works in the industry...people, especially the younger generations are not drinking anymore. It's hurting all alcohol sales.


I can attest to this. I'm in the beer business and my wife is in the wine industry. Alcohol sales across the board are declining. Young people aren't going out and they are not drinking as much.

Username checks out!

Man if they class of 97 then they are talking the King of Beers.

Being at A&M in the late 1990s as a devout pothead was not a safe space. Source: A friend.
flown-the-coop
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JamesPShelley said:

The ignorants tossing around the word "Tariff" like the word "racist".

C'mon, man.

See, I knew Trump was a racist! Tariff is his favorite word!
BigRobSA
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Blaming it on "tariffs" isn't what the article is specifying, only that it's a part of the whole problem:

Quote:

Whiskey and spirit makers have had to deal with retaliatory tariffs from the trade war sparked by Trump's tariffs, and with consumers pulling back on discretionary spending amid an affordability crisis.

The trade fallout between the United States and Canada has also impacted whiskey and spirit makers. In March, Canadian officials banned American spirits from stores, a rule that is still in place in some provinces.

All of which can be true Especially the affordability aspect.

I don't drink, but it's hard to afford much nowadays with increased pricing due to many things, tariffs being one of them (in general, for certain items).
TAMUallen
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This is likely due to there being less of a cheap bourbon and whiskey market dominated by a few distillers coupled with a now saturated better bourbon/whiskey market
Kaiser von Wilhelm
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bobbranco said:

Take a gummy.

Burn a blunt.

Eat a brownie.

It's the trend.


Well the gummy is before bed.

BigRobSA
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I blame the (vape) juice!!!!1
No Spin Ag
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flown-the-coop said:

I cut back my drinking considerably once I elevated my Texas arse weed supply.

Not all kids are turning to pot though. Thankfully, many are shunning the weed, the hooch, and the tinder cooch for some good ol fashioned holy rollin.

More power to them. I am becoming more encouraged by the younger crowd than I have been in years.


I hadn't thought of that.

Good for them. Lucky SOBs
There are in fact two things, science and opinion; the former begets knowledge, the later ignorance. Hippocrates
TexasAggiesWin
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S
Less people drinking, alcohol in stores has raising prices!

One sure fire way to not encourage future buying
Ribeye-Rare
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Perhaps I'm wrong, but I swear the price of beer is cheaper now than it was when I stopped drinking 15 years ago.

I was in the grocery store just last week and 30-pack suitcases of Michelob and Coors were $25 each, which works out to $5 per 6-pack.

Everything else has gone way up in price (especially sodas), but it appears beer hasn't. That is, of course, unless you order one at Kyle Field or JerryWorld.
Over_ed
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Ribeye-Rare said:

Perhaps I'm wrong, but I swear the price of beer is cheaper now than it was when I stopped drinking 15 years ago.

I was in the grocery store just last week and 30-pack suitcases of Michelob and Coors were $25 each, which works out to $5 per 6-pack.

Everything else has gone way up in price (especially sodas), but it appears beer hasn't. That is, of course, unless you order one at Kyle Field or JerryWorld.

Soda is actually dropping now. Part of the problem was retailers getting favorable deals. The one I know about, Frito/Lays/Pepsi worked to make Walmart the cheapest retailer by giving them discounts and raising the prices to other retailers.

Honestly, I would rather drink the HEB brand than pepsi (windex). Dr Pepper is the clear winner to me. I do drink diet, though.
DannyDuberstein
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People are drinking less. Lifestyles of youth have changed. Some people are using gummies. A lot of people are tracking their sleep with devices and learning just how much alcohol wrecks their sleep.
Ribeye-Rare
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Quote:

Honestly, I would rather drink the HEB brand than pepsi (windex). Dr Pepper is the clear winner to me. I do drink diet, though.

With apologies to OP for veering a bit off topic --

Speaking of HEB brand sodas, I've even noticed a huge price increase (pre-COVID / post-COVID) on their 12-packs of 12-ounce cans.

My wife was a big fan of lime diet-Coke, but Coke discontinued that flavor variation a while back and my wife switched to the HEB equivalent. Pre-COVID, HEB sold their lime-flavored diet colas for $2.43/12 pack. Now they are $5.00/12-pack, with an occasional discount to $4.00.

No, that won't break me, but it's an observation. That's all.

About Pepsi -- they really need to swallow their corporate pride and come out with a cola flavor variation (alongside their 'flagship') that tastes like Coca-Cola. It would stop a lot of groaning for us Coke fans when we go somewhere and hear 'No Coke, just Pepsi.'
DannyDuberstein
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The Frito/Lays/Pepsi thing isn't true. It may seem that way because of the pricing strategies chosen by retailers. Walmart is one of a few that employ EDLP - everyday low price, while most grocery retailers will keep these products at full price some weeks but then mixing in weeks where it's on deep deal (albeit sometimes requiring multiples to be bought to maximize it). Walmart is also able to absorb a lower margin in how they choose to price. But the pricing offered on the vendor side from Pepsico to its customers is subject to anti-trade laws, basically binding them by law to offer similar price structuring across the board. There are different strategies offered (EDLP vs weeks on deal), but those are available to all of these large retailers and they are making the choice
flown-the-coop
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Over_ed said:

Ribeye-Rare said:

Perhaps I'm wrong, but I swear the price of beer is cheaper now than it was when I stopped drinking 15 years ago.

I was in the grocery store just last week and 30-pack suitcases of Michelob and Coors were $25 each, which works out to $5 per 6-pack.

Everything else has gone way up in price (especially sodas), but it appears beer hasn't. That is, of course, unless you order one at Kyle Field or JerryWorld.

Soda is actually dropping now. Part of the problem was retailers getting favorable deals. The one I know about, Frito/Lays/Pepsi worked to make Walmart the cheapest retailer by giving them discounts and raising the prices to other retailers.

Honestly, I would rather drink the HEB brand than pepsi (windex). Dr Pepper is the clear winner to me. I do drink diet, though.

Energy prices should be considered if we are going to talk groceries and consumer products in general. Very hard to reach any conclusions in a vacuum.
BillYeoman
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Kids are finding out via the internet alcohol and Islam are bad for you
Jarrin Jay
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Jim Beam distillery co. or whatever the Japanese company calls it now, makes several good bourbons… but Jim Beam itself is awful.
Queso1
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Alcohol is a poison and known carcinogen.
Ryan the Temp
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Queso1 said:

Alcohol is a poison and known carcinogen.

And the most likely cause of my dad's Alzheimer's.
BudAg97
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Queso1 said:

Alcohol is a poison and known carcinogen.


To the state of California or for everyone?
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