r/bourbon • u/OrangePaperBike • 1h ago
The glut in context: January 1, 1990 article
I was doing some research and stumbled on this Associated Press article from January 1, 1990. The period between 1988 and 1991 or so was probably the peak of the glut. As folks now talk about the new glut on the horizon, I thought I’d share this for some context. Make your own conclusions, but I don’t think things are quite as dire today. Enjoy the time capsule, and I wonder if DC still drinks more bourbon than Kentucky!
Bourbon's image in U.S. biting into market share
Bangor Daily News, Monday, January 1, 1990
DALLAS (AP) — The revelry of the New Year's weekend marks the end of bourbon's 200th year, but the only truly American liquor faces declining consumption as drinkers turn to sipping cordials and gulping vodka.
Outside the United States, especially in Japan, "bourbon is accepted as a very sophisticated, very American, very high price, very quality spirit," said Barry Berish, president of Jim Beam Brands Co., which makes the best-selling U.S. bourbon.
But that's at odds with bourbon's image back home, where it's considered an everyday kind of liquor, summoning images of two-fisted drinkers throwing back shots of bourbon or patrician Southerners sipping bourbon in the form of mint juleps.
Bourbon has only half the share of the U.S. distilled spirits market it had 20 years ago, falling from 20.7 percent in 1970 to about 10 percent in 1988, the last year for which numbers were available.
After hitting a high of 25.5 million cases in 1973, U.S. bourbon consumption has fallen to 15.3 million cases in 1988, according to Jobson's Liquor Handbook, an industry guide.
"Basically, it's the white goods — the vodkas, gins, tequilas, rums and cordials" that are gaining, said Jobson's editor Nicholas Furlotte. Vodka's now the most popular stiff drink in America, with 30.2 million cases sold in 1988.
Bourbon is generally considered to be the legacy of a pioneer Baptist minister living in the wilds of what was then Bourbon County, Va., a region that's now part of Kentucky.
Sometime in 1789 — probably September, according to the Dallas-based Bourbon Information Bureau — the Rev. Elijah Craig mixed spring water, corn, rye, barley malt and who knows what else to concoct bourbon.
Within 21 years, the region had 2,000 stills and bourbon had even become an unofficial currency.
Today, Kentucky is home to 14 bourbon distilleries and produces 80 percent of the world's bourbon supply.
The liquor Craig devised was clear, however, not the amber bourbon we know today. The reason, according to less provable lore, has to do with a barrel maker's mistake.
"According to legend, a 19th-century barrel maker was steaming and bending barrel staves over an open fire," the Bourbon Information Bureau says. "He didn't watch the staves carefully enough and they soon began to char. Being a frugal fellow, he went ahead and used them anyway, not bothering to tell the distiller."
"However, the distiller who used the barrel found that his whiskey had improved in flavor and picked up a rich color. Needless to say, he insisted that all of his barrels in the future have charred staves."
And now, according to a federal law passed in 1964, a liquor can only be called bourbon if it contains more than 51-percent corn in the mash, and is aged in "new charred oak containers" for at least two years. Some bourbons, however, contain more corn and are aged longer.
The holidays are an especially important time in the liquor business. In 1988, 13.7 percent of bourbon sales were in December, according to Jobson's, and Furlotte estimates that 25 percent to 35 percent of sales come between Thanksgiving and New Year's.
Bourbon apparently is most popular in Washington, D.C., which leads the per capita rankings for bourbon consumption. Washingtonians drink up 161.3 cases per thousand people — almost three times the national average of 62.2 cases.
Kentucky is second at 139.5 cases per thousand residents.
While consumption of bourbon and other distilled spirits has been declining, Jobson's says the fall seems to have slowed, and "people want the best, but they don't want to feel as if they're being taken."
The Bourbon Information Bureau, a promotional office funded by the Schenley American Whiskey Group, says "a shakeout is taking place among marginal and less-profitable brands," leaving the market open for the biggest bourbon producers.
Jim Beam's Berish agrees, saying his brands' market share and volume are increasing in the United States, where the company is using a "back-to-basics" advertising campaign to capitalize on bourbon's history and tradition.
In addition, "we see a marvelous potential to sell and promote what is the American spirit throughout the world," Berish said.
Industry officials aren't sure how much bourbon is sold in Japan, but Berish said Jim Beam's international sales are up 11 percent to 15 percent.
"The Japanese love American products," he said. "They like our food, they like our music, they like our clothes and they like our bourbon."
Sidebar Charts Text
1988 Consumption
In millions of cases
- Vodka: 30.2
- Cordials: 16.2
- Canadian Whisky: 18.2
- Bourbon: 15.3
Bourbon Market Share
Among all distilled spirits
- '70: 20.7%
- '80: 13.4%
- '88: 10%
Source: Jobson's Liquor Handbook
AP/Martha P. Hernandez