Upscale Bourbons Showing Steady Growth In The Year-To-Date

For the first time in a quarter-century, U.S. consumers drank less American whiskey last year than in the previous year—however, thanks to consistent premiumization trends, the category grew in dollar terms, according to Impact Databank. And despite an overall volume loss of 1%, the $25-and-over Bourbon segment grew 3.5% in volume to 10.96 million 9-liter case depletions.

This higher end of the category now accounts for more than one-third of total American whiskey volume in the U.S. as consumers continue to favor pricier labels. So far in 2024, the leading Bourbon brands priced at $25 and above are collectively up 3.8% by volume in control states, with five of the top seven labels on the rise.

Top player Maker’s Mark from Suntory Global Spirits dipped 1.5% by volume in control states through July, but has continued to leverage the value side with upscale releases. This week the brand is launching its 2024 Maker’s Mark Cellar Aged expression, a blend of 15% Maker’s Mark 12-year-old and 85% Maker’s Mark 13-year-old bottled at 59.7% abv and retailing at $175 a bottle. Maker’s Mark managing director Rob Samuels noted that the newcomer is the brand’s most mature Bourbon released to date.

Suntory Global’s Knob Creek and Basil Hayden labels are also among the super-premium Bourbon leaders, and both are on the rise in control states this year. This summer, Knob Creek unveiled Bourbon X Rye, a blend of 9-year-old Bourbon and 7-year-old rye bottled at 56.5% abv and retailing at $45. Earlier this year, Basil Hayden brought back Subtle Smoke ($50), a limited offering first released in 2022 that’s finished for six weeks in toasted and charred barrels that were filled with hickory smoke.

Diageo-owned Bulleit has been in innovation mode lately, entering the American single malt category earlier this year with a bottling selling at $60, as well as a 12-year-old rye positioned at $55. In Diageo’s fiscal year through June, Bulleit’s North America sales grew 12%, although the company cautioned that shipments were “significantly ahead of depletions growth as inventory levels continue to normalize.” Yesterday, Bulleit debuted its largest U.S. brand campaign to date, “We Aren’t Made To Be Still.” Jesse Damashek, SVP of Diageo’s whiskey portfolio, said the push highlights the brand’s “drive to defy conventions” and its innovative spirit.

Brown-Forman’s 1.4-million-case Woodford Reserve and 485,000-case Old Forester are both tracking control state growth this year. “Woodford Reserve continues to experience growth, even amidst the tough environment for the spirits category,” says Tracey Johnson, vice president of Woodford Reserve and Old Forester at Brown-Forman. Recent rollouts from Old Forester include its annual Birthday Bourbon and a rum-finished whiskey under its 117 Series.

Sazerac-owned Buffalo Trace has expanded the fastest of any super-premium Bourbon in control states so far this year. This summer, the distillery gained international visibility with a pop-up store in Paris during the Summer Olympics. In addition to the Buffalo Trace brand, the pop-up featured other Sazerac whiskies like Eagle Rare, W.L. Weller 12-year-old Bourbon, and Sazerac rye.

Tagged : Basil Hayden, Brown-Forman, Buffalo Trace, Bulleit, Knob Creek, Maker's Mark, Suntory Global, Woodford Reserve

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