The last decade has been one of unexpected growth for whiskey distillers in the United States and in particular for those producing bourbon. Bourbon is made in the United States only—in the same way that Scotch Whiskey must be made in Scotland—and is a type of whiskey made from a grain mash consisting of at least 51% corn mash. The distinctions that define types of whiskey are the primary grain used in the mash with which the whiskey is distilled, the length of time it is aged in a barrel, and the place in which it is made.

Bourbon whiskey was a very fashionable and popular drink in the United States after prohibition and through the 1950s. The drink went out of fashion in the 1960s and spent the next several decades in decline. But that has all changed since the turn of the century. Bourbon is once again a fashionable drink, demand for which is rising so quickly that distillers are having a hard time keeping pace. After all, a high-quality bourbon must spend years in a barrel to age making quick adjustments to inventory problematic.

Today’s market size is the value of bourbon exports from the United States in 2002 and 2013.

Geographic reference: U.S. exports
Year: 2002 and 2013
Market size: $376 million and $1 billion respectively
Source: Clay Risen, “The Billion-Dollar Bourbon Boom — How Did American Bourbon Get So Damn Hot?” Fortune, February 24, 2014, pages 56-65.
Original source: Distilled Spirits Council of the United States
Posted on March 4, 2014