Greg Guenthner

We’re just hours away from a 3-day weekend. So why not treat yourself to a bourbon on the rocks?

Apparently, that’s what everyone else is doing…

Bourbon sales have gone through the roof. In order to meet sales demands, one label is doing the unthinkable. Just this week, Maker’s Mark announced it will water down its bourbon from 90 proof to 84 proof in order to meet sales demands.

Forbes says the decision could be “brand suicide” for Maker’s Mark, which is owned by Beam Inc. But if you look beyond the bad publicity, you’ll see a major trend developing in the beverage sector…

Per Capita Beer Consumption

Liquor consumption is quickly gaining on beer — which has found itself in a steady downtrend since 2008. Leading the way is bourbon, accounting for 35% of all domestic spirit sales, according to The Atlantic. But overseas demand is the real kicker. Bourbon is currently experiencing triple-digit sales growth outside the US. Japan, Australia and even emerging markets are becoming major growth hotbeds for this distinctly American beverage.

I suspect bourbon shortages and rising prices will become the norm. You can’t outsource bourbon production (it’s not bourbon unless it’s made in the States). And there’s no way to quickly increase supply (bourbon has to age in barrels before it can be bottled and sold).

Then there’s beer. Microbrews have gained in popularity recently, yet the market feels saturated. Bigger brands are seeing their market shares dwindle as consumer preferences evolve…

The decision here is obvious:

Sell beer. Buy bourbon.

Greg Guenthner
for The Daily Reckoning

Greg Guenthner

Greg Guenthner, CMT, is the managing editor of The Rude Awakening. Greg is a member of the Market Technicians Association and holds the Chartered Market Technician designation.

  • http://www.facebook.com/jasonstone.whiskeystill Jason Stone

    it’s all about the money isn’t it? the dilution is done so the company could sell more bottles. i’d rather do my own distilling through my copper whiskey still – at least I know what I put in my drink – just my two cents.

Recent Articles

The Next Car You Buy Will Be an Electric Car

Stephen Petranek

Electric cars are proving to be far cheaper to operate than anyone could have guessed. In fact, many people are now just getting the equivalent of thousands of mpg to their electric cars. And that's presenting a unique profit opportunity. Stephen Petranek explains...


A Treasure Chest of “Secret” Buy Signals

Paul Mampilly

The world's most successful investors almost always think differently. That's nowhere more apparent than when you're trying to invest in health care. Today, Paul Mampilly - one of the world's top biotech analysts - reveals one "secret" for making money from a predictable cycle in the industry. Read on...


Natural Gas: How to Stay Warm (and Profit) This Winter Season

Greg Guenthner

Right now, the city of Buffalo, NY is covered in five feet of snow. And while that may be bad news for those poor folks, it could be good news for you. Because now that another harsh winter is upon us... you have a massive opportunity for quick double-digit gains. Greg Guenthner explains...


Tip of the Day
3 “Dirty” (and Sexy) Ways to Boost Your Health Tonight

Chris Campbell

Warning: The following article is not for the puritanical. Today, Chris Campbell shows you three "dirty" health boosters you can use tonight to raise your immune system... improve your outlook on life... and make your partner a happy camper. Read on...


The Shock Doctrine: When Order Trumps Personal Freedom

James Rickards

When some event - be it a terror attack, financial panic or natural disaster - upsets the status quo, people are more willing to relinquish their freedom in favor of a greater sense of security. And that's when ambitious political leaders make their move... And as Jim Rickards explains, another such event could be right around the corner. Read on...