Barrel demand

Discussion in 'Beer Talk' started by BBThunderbolt, Dec 30, 2014.

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  1. BBThunderbolt

    BBThunderbolt Grand High Pooh-Bah (7,846) Sep 24, 2007 Kiribati
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  2. drtth

    drtth Initiate (0) Nov 25, 2007 Pennsylvania
    In Memoriam

    As the supply of used Bourbon barrels grows it will make more used barrels available for beer and other uses. But we can expect to see a 2-4 year lag in the effects as a result of the Bourbon aging time in the barrels. By law Bourbon barrels can not be used more than once to age Bourbon, so once those barrels are emptied they will move on to other things. This will also make the Scots who distill happy since used Bourbon barrels are often the barrel of choice for aging Malt Whisky.
     
    #2 drtth, Dec 30, 2014
    Last edited: Dec 30, 2014
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  3. infuturity83

    infuturity83 Initiate (0) Sep 22, 2009 Massachusetts

    I don't see the supply/demand chain being too much of a problem for Bourbon barrels.

    Other barrels, on the other hand (more generic whiskey/rye whiskey/rum/tequila/wine)....that's a different story
     
  4. BBThunderbolt

    BBThunderbolt Grand High Pooh-Bah (7,846) Sep 24, 2007 Kiribati
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    IIRC, bourbon makers can now use the barrels twice, plus scotch makers have a high demand for the barrels too. I just wonder how the secondary market for these barrels is going to develop, especially with the large breweries ramping up production of barrel-aged beers (ie: ABI-BCBS).
     
  5. gopens44

    gopens44 Grand Pooh-Bah (3,560) Aug 9, 2010 Virginia
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    Kinda what I was thinking. Increased demand for whiskey is only a good thing for the increase in BA beers. If there were no increase in Bourbon production, could have led to a shortage for brewers. Then we would have a problem finding BCBS in the future........(tongue firmly planted in cheek)....
     
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  6. drtth

    drtth Initiate (0) Nov 25, 2007 Pennsylvania
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    If Bourbon makers can use their barrels twice I've never heard of it. Can you link to some documentation that it was changed recently?

    If the demand for Bourbon is growing it probably doesn't match yet what has happened to the demand for Single Malts over the last 10-12 years. So the Scots will continue to buy in bulk when they can. As for Brewers in the US, I'd say the prices for Bourbon barrel aged beers will continue to rise pretty steadily as I don't seen the price of barrels dropping sharply even with an increased supply of barrels. (That is unless beer geeks give up their passion for Bourbon barrel aged beers.)
     
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  7. Phocion

    Phocion Maven (1,455) Aug 5, 2005 Minnesota

    They can only use them once if they are to call it "bourbon."

    http://www.law.cornell.edu/cfr/text/27/5.22
     
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  8. Fly_Moe

    Fly_Moe Initiate (0) May 22, 2012 Florida

    My question would be, if the bourbon and scotch makers can now use the barrels twice, will they? If you have whiskey/scotch soaking in a barrel for 25 years and then bottle it, wouldn't you lose taste making another batch in that same barrel? I'm not sure these companies will want to experiment for 25 years with a batch a whiskey/scotch that might lose tons of flavor in the second go around. That would be a long and expensive experiment.

    But as far as the barrels go for beer, i don't see that being a problem. I assume the whiskey/scotch makers are happy to make some money selling their used barrels instead of throwing them away.
     
  9. drtth

    drtth Initiate (0) Nov 25, 2007 Pennsylvania
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    That "single use" will apply only to Malt Whisky distilled in the US. The Scots have a different set of laws in place with no such prohibition. Indeed, there are existing examples of malt whisky barrels being used multiple times and while I have no documentation I've been told (in Scotland at the Whisky Heritage Center) there is at least one distillery can date one of their barrels back to about 100 years ago.
     
  10. drtth

    drtth Initiate (0) Nov 25, 2007 Pennsylvania
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    Until we have documentation of a recent change in the US law governing production of Bourbon, assume a single use.

    As for the Scots, they've been reusing barrels for years.
     
  11. Phocion

    Phocion Maven (1,455) Aug 5, 2005 Minnesota

    That is correct. In fact, a good number of Scotches use barrels that have already held bourbon, or even more commonly Sherry or other wines.
     
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  12. BBThunderbolt

    BBThunderbolt Grand High Pooh-Bah (7,846) Sep 24, 2007 Kiribati
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    No, it's just one of those things I think I might remember picking up along the way. There was a comment that mentioned it in the comments of the NPR article, and it struck some faint chord, deep in the back of my head.
     
  13. drtth

    drtth Initiate (0) Nov 25, 2007 Pennsylvania
    In Memoriam

    Well, then I think we'd best operate on the assumption of single use in projecting the effects of increased barrel making since the ability to use barrels twice for Bourbon would produce a relatively sudden drastic cut in the demand for new barrels. :slight_smile:
     
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  14. Eriktheipaman

    Eriktheipaman Pooh-Bah (2,303) Sep 4, 2010 California
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    Used Bourbon barrels are used in most aged liquors such as Scotch, Tequila, Rum, and Sherry.

    More barrels is always a great thing :slight_smile:
     
  15. KBS

    KBS Savant (1,078) Apr 25, 2014 Michigan
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    Stopped at a brewery to pick up some BBA'd while out of state for Christmas. The Brewery was not open for consumption but was for bottle purchase "to go". It gave me the opportunity to talk to the brewer for a few minutes. He said because of the demand for the barrels they are increasing in price $40/barrel in 2015, at least for them. He said they typically use Elijah Craig 12 year old barrels. He also said when they are done with them they just sell them to individuals among other places. He commented that several years ago the bourbon producers just scrapped them and now they are a big revenue source, maybe not a profit source but a lot of revenue they previously didn't have. His comments immediately made me think there could be a price increase coming for barrel aged.
     
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