An Exports Success Story

For an economic story in somewhat better spirits, consider the chart above illustrating the growth in exports of distilled beverages from Kentucky. They are prospering:

Kentucky exported a record $397.9 million in spirits in 2014 — the vast majority of the whiskey variety — putting the state second for spirits exports in the United States, behind only Tennessee. It marks a 72.6 percent increase since 2010.

The data was compiled by the Kentucky Cabinet for Economic Development, which includes bourbons as part of the whiskies category. In 2014, Kentucky exported $301.1 million worth of whiskey — its second-best tally ever. The record for whiskey exports came in 2012, at $314.6 million.

Still, from 2010-2014, Kentucky’s whiskey exports rose 56.7 percent.

The Commonwealth was the second-largest exporter of whiskies in the U.S. behind Tennessee, which exported $712 million in 2014. Total U.S. whiskey exports were $1.3 billion in 2014, also a record.

“Non-whiskey spirits” denotes cordials and liquers, a category in which Kentucky leads the nation. It would take a lot of whiskey to offset the U. S.’s loss of leadership in the exports of automobiles or computers but it’s a start.

To my eye (and palate) we’re experiencing a renaissance in the distillation of fine spirits in the United States. I’ve sampled the products of two craft distilleries in just year, Koval Distillery, just a good stretch of the legs from here, and Black Button Distilling in New York. I have three bottles of Koval’s products on my shelf right now: their rye whiskey, “Four Grain” whiskey, and their spelt whiskey. Not long ago I had the opportunity to sample a few of Black Button’s products. I’m not much of a gin drinker but their Citrus Gin is delicious. I encourage my readers to seek out local craft distillers and report back here on their experiences. And pass the bottle over here, boys.

I can only attribute the growth in craft distillers to the relaxation of state and local laws. To the best of my knowledge the stringent federal regulations on distilling have not been relaxed. Those are what destroyed the small distillery business a century ago and what are the most important factors in constraining their growth today: federal, state, and local regulations. There’s no reason that Missouri or Texas couldn’t produce brandy as good as that produced in the Cognac region of France other than the barriers that prevent people making a business of doing it.

There’s a lot to be learned from the article to which I linked above. For example, the top markets for exports of Kentucky whiskey are Australia, Spain, Japan, Canada, and Germany. All of those have increased their imports sharply except Germany where imports have decreased which I suspect tells us something about the European economy. What in the heck is going on in Spain?

5 comments… add one
  • Ben Wolf Link

    This is happening for Island scotch as well. Laphroaig (the ten-year is amazing) is making huge inroads in the U.S., partly because younger women are increasingly drinking whiskies.

  • As I’ve said before my preferred single malt whisky for many years was Laphroaig. It’s now Talisker. My wife’s is Highland Park.

    A couple of years ago I purchased a bottle of Highland Park’s 18 year old single malt Scotch whisky for her for her birthday. She bragged to her friends “My husband got me an 18 year old for my birthday!”

  • ... Link

    Spain’s in really bad shape, in every way, according to the Spaniards I know. They need all the adult beverages they can get.

  • PD Shaw Link

    I’ve read some blow-back on the craft distillery boom, for products being moved to the market too soon, not enough fine-tuning of the ingredients and process, and not enough expertise. I’m more willing to experiment with an unknown brand of beer, than a bottle. Though I have been thinking about trying Death’s Door Gin, as an accompaniement to getting ready for some vacation time in Door County this Summer.

  • The way I’ve proceeded is (in the case of Koval) to go to the distillery to taste a variety of their products or (in the case of Black Button) to be offered tastes of the distillery’s products by a friend.

    One word of warning is that you need to be made of pretty stern stuff to experience an extensive tasting at a distillery. Koval’s makes more than 20 different spirits. A man’s got to know his limitations.

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