The Price Of Cheapness.

[bunghole]

Because some people believe there is more to life than maximizing profit. The satisfaction that come from making a quality product is still revered by many, and most of us fall into that group I hope. Running a business to maximize the profit is a cold and souless endevour. Pappy knew this. He'd rather run a small top quality business that was the best it could be, rather than a huge profit making corporation that made a lesser product.

If you talk to the people at BT or 4Roses you know these people love their work. Also, one can make good money by selling a LOT of cheap product, or a lesser amount of high end product. BT probably realizes that they don't need to sell as much volume at a lower margin if they make high quality bourbon and sell less of it at a higher margin. And you can go home each night with pride.

Well said Mike. I agree most fervently.
Joe

ima do too!

[bunghole]

Because some people believe there is more to life than maximizing profit.

Do Tell!

[bunghole]

I think it is OK to post this chart that accompanied the article from the Louisville paper that Chuck hot-linked.

[bunghole]

We can't leave Jim Beam Brands out of this discussion. Jim Beam lowered the proof of their flagship white label years ago and is as young as they dare make it while still achieving the desired flavor profile. If anyone has truely maximized their profits, Jim Beam surely has.

To their credit they did invent and market their "Small Batch Collection", and Jim Beam 'black label' is available at 86 proof that tastes like Beam bourbon should.

I do wonder why they are going to the expense of buying a new still when the still at Frankfort could be fired up. The fermenters are also there, and could be put back into good use.

They must have a reason. Maybe they will tell us one day.

[bourbonv]

Linn,
I would say the location is the problem with the Frankfort site. The distillery there would probably make some excellent OLd Grand Dad but Jim Beam probably already has all the production need for that brand. Jim Beam made there with that still and water source would taste different from what they make in Bullitt and Nelson Counties with their water sources.

[cowdery]

I think what Mike says is right. The only access to Forks or Elkhorn is that little bridge over the creek. And it's a pretty developed area, they might have trouble from the neighbors if they fired up the still. Also, I'm not sure what's really there. When distilleries are decomissioned, anything with copper in it, such as the stills, is sold for scrap. I haven't been in any of the buildings there except the offices. I don't know what's really there.

Also, adding capacity at an existing site probably does not require as many additional people, if any, as opening up a new site would. I think they also like the proximity of Boston and Clermont, easy for management oversight, and there's nothing else around the Boston plant so they pretty much own the roads there, nobody complains about the smell, etc.

Since they do no bottling at Boston, it's just grain and empty barrels coming in and full barrels going out, unless they dump there and send the whiskey to the bottling plant in tankers. (Does anyone know?)

Boston also is their real "mass production" plant. We were told once by a manager at Clermont that Boston only makes Beam white and the bottom shelf stuff, like Crow. All of the "good stuff" is made at Clermont including, perhaps ironically, Booker's.