Stop Overpaying for Bourbon

Two things about me: 1. I live in Kentucky, and 2. I enjoy bourbon. Admittedly, I jumped on the bandwagon after Anthony Bourdain lit the match to the industry in 2012 with his reverence for Pappy Van Winkle that went ‘viral’ back then. Ever since, the bourbon world has exploded in popularity. Interestingly, the ascension wasn’t due to a new product or process in the bourbon industry, it was simply a rediscovering of its value. And, perhaps, well-executed marketing.

Before 2012, you could go into any liquor store and see bottles of Pappy Van Winkle, Blanton's, Weller, Old Fitzgerald, you name it – it was sitting priced to sell. Fast forward to today, these same bottles are selling for thousands of dollars and are nearly impossible to find. Since bourbon is aged in barrels for years (decades, in some cases), balancing out the demand with adequate supply isn’t happening overnight. In short, if you want the goods, you’re paying a premium! As a result, bourbon has become the adult version of trading cards.

So, what price should you pay and what is fair value for these bottles? Some states (17 states*) have legislatively deemed liquor stores as ‘state controlled.’ which fixes prices at market and aims to eliminate price gouging. In other states, both liquor stores and consumers are left to fend for themselves, such as in Kentucky or Tennessee. The bourbon trade has reached a point where the Ohio legislature is even considering a law** that would require liquor stores to open allocated (hard to find) bottles at the time of sale in order to tamp down on the resale market. Like trading baseball cards. If you wanted your favorite player, and your trading partner knew it was your favorite, the price was going to be high. That is, unless you had a source of truth to reference to find fair market value. Back in the day, this is where the trusty Beckett (a pricing guide, for those not familiar), came into play. Bourbon has something like Beckett in the form of an app called ‘Bourboneur’ (it’s $25 and no I’m not paid to promote them) but this could help you from getting ripped off, at least unknowingly.

Here are some tips for not overpaying for bourbon:

1. Go to a state-controlled liquor store. This will most likely assure you that you’ll be paying retail prices.
2. Visit a distillery, if you’re local. The options are often unpredictable, but many distilleries release bottles several times a week at fair prices. You may have to arrive early and wait in line, but it’s easier on your wallet.
3. Use a pricing guide like ‘Bourboneur’ to help you evaluate prices before you buy.
4. Keep an eye out for lottery opportunities. If you look, you may find a liquor store that uses a lottery system for sought after bottles. You may have to bundle up and wait in the cold for a few hours, but it could pay off for you.

Finally, if you’re into bourbon, and specifically bourbon collecting, make sure that you are investing in other ‘liquid assets’ to help build your wealth over time. If you find yourself with a big enough collection, Whiskey Insurance is a thing, and you might need it.

Enjoy responsibly (financially responsible too)!

Sources:

* https://www.nabca.org/control-state-directory-and-info

**https://www.nbc4i.com/news/politics/ohio-bill-would-require-high-demand-liquor-bottles-to-be-opened-when-sold/

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