THE BOURBON RESOURCE: JAN. 2025
Bankruptcies, bubble's bursting, Knob Creek barrel pick, Horse Soldier review
Welcome to 2025! That seems strange to say. As usual, another year whisked by, and here’s to hoping everyone enjoyed their holiday. The Bourbon Resource has much to cover in this first edition of the year.
THE BIG NEWS
It's massive news, actually. The Stoli Group USA, which owns Kentucky Owl bourbon has filed for Chapter 11 bankruptcy, citing, among other reasons, a slowing spirits market. Even worse, the bankruptcy has ensnared another major distiller. According to the bankruptcy filing, Kentucky Owls owes the Bardstown Bourbon Company more than $5.5 million.
Under Chapter 11, companies reorganize debts to stay in business. But this bodes poorly for an industry that seems to be on the verge of its bubble bursting (more on that in a bit). There’s no indication, yet, of any business changes, but those might come when we see the reorganization plan. And, no one has yet written about what this means for Bardstown. Stay tuned.
BIG NEWS PART 2
I find this fascinating. Town Branch, the primary distilling operation of the Lexington-KY-based Lexington Brewing & Distilling Co, has released the oldest single malt whiskey in the world, a 15-year-aged product that’s 100% malted barley. The company press release says an estimated 108 bottles will be available at 100 proof and as you can expect, it comes with a hefty price: $399.99. But this one will go fast because it’s a unique buy. (Getting No. 1 of batch 1 would be a real keeper). There’s also an extra benefit. Anyone who buys the bottle gets a coin that gives them free distillery tours for life. The tours aren’t expensive —- $13 to about $22 depending on what you pick —- but it’s not hard to see someone, over time, spending $100 or more on tours which would lower the bottle’s effective price. I wanted to drive to Lexington and get a bottle but holidays and other commitments made that impossible. If anyone tries this, let the Bourbon Resource readers know what it’s like!
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BIG NEWS PART 3
For the first time, the Beam Distillery has announced a private pick program in which customers can select a barrel of Knob Creek, either the 120 proof or the rye. You can read about the details on the link, but one requirement caught my eye. Beam requires a non-refundable $1,161 deposit [1] when selecting your private pick date. That’s fair. First, it will weed out those just trying to grab a date to hold, thereby blocking others. It also protects the distillery. I’ve heard too many tales of groups going on picks, tasting/selecting a barrel, and later deciding not to follow through on the buy. That stiffs the distillery and the people who spent their time providing the tour. My bourbon group, the 32 Staves Society, will pick a barrel in late February, and I’ll use most of the March newsletter to review the experience.
MORE NEWS FROM THE BOURBON RESOURCE
WHISKEY BANKRUPTCY: While this isn’t bourbon, it’s an example of the problems roiling the industry. Waterford Distillery, the Irish Whiskey purveyor, has filed for bankruptcy and is in receivership because it couldn’t get money to stay afloat. Receivership means the company must liquidate its assets to pay off debts. Ouch. And if you think that’s bad …
MORE CONCERN: The bourbon industry is in a tizzy because the European Union has threatened to impose a 50% tariff on American whiskey starting in March. While this is likely political noise, the industry is sounding the alarm. Tariffs—or a tax—that high would make bourbon far more expensive and less desirable overseas. More products in this country would result in a glut that would depress prices. Stay tuned.
PENELOPE’S NEW CASK FINISH: In a respite from depressing financial news, Penelope Bourbon announced its latest cask-finished product called Havana. The company used a double-cask finish. The casks were used to age Penelope bourbon and then repurposed to age maple syrup before being used for Havana’s second finish. That sounds sweet! Penelope has been at the forefront of cask-finish bourbons and the originality of this is certainly above the rose and cabernet finishes we see in the industry. I hope to have a review in February.
A BURSTING BUBBLE
It was fun, for distilleries, while it lasted. Signs point to the bourbon bubble bursting.
In addition to the bankruptcies, secondary market prices have been dropping like a rock. Brands that often commanded six to 10 times retail are now getting half that. A Heaven Hill 18, which costs $280 MSRP and used to go for eight times that, is now available on the secondary for about $600. Stagg Jr., which in the first half of 2024 went for $325, now goes for about $160. Even Van Winkle 10 ($129 MSRP) and 12 ($149 MSRP), sought-after bottles for status seekers, have stagnated to $650 and $800 respectively —- still way too much but not the $1,000-plus we had been seeing.
Retailers are starting to add more allocated products to their shelves. Across the country, stores sell Blantons for $49, Stagg (Jr) for $69, and plenty of Booker’s for $99, it’s standard price Moreover, some overpriced items, like the $200 Old Grand Dad 16-year bourbon, sit on shelves with no takers. (Don’t but it. Not worth it)
What’s happening? When the bourbon market exploded a decade ago, several boutique distilleries opened that produced excellent, sourced blends at reasonable ($50 or so) prices. So for every $250 Russell Reserve 15, AM Scott produced a terrific seven-year barrel proof for $55 sourced through MGP. Distilleries opened all over the country in places like New York City, Troy (AL), and even the small village of Whitehouse, OH. Distilleries poured money into expanding their facilities or building new rickhouses. In Kentucky alone, distillers say they’ll invest $3.5 billion over the next five years.
People got caught up in the bourbon hoopla, dropping $325 on Blanton’s (no), $625 for a Willet Family Reserve (meh), or $1,300 for Van Winkle Family Reserve Rye (my oh my). Bars jumped in, charging $500 for a 2-oz pour of Woodford Baccarat, $125 for a Van Winkle 10, and $40 for an Elijah Craig Barrel Proof C923.
These buyers went ga-ga because they thought their bottles would appreciate and customers would eagerly pay ridiculous prices to be the cool kid. But markets adjust. We’re seeing that now, even as Kentucky continues to produce a record number of barrels at a time when people under the age of 35 are drinking less.
The bursting bubble doesn’t necessarily mean lower prices. But it could mean more allocated brands available for retail or close to it as distilleries look to draw down inventory. That would be good for consumers but bad for the industry.
THE BOURBON RESOURCE REVIEW
Note: This review bottle was provided by the Horse Soldier Bourbon without any special consideration. The Bourbon Resource appreciates Horse Soldier’s support.
Horse Soldier Reserve Barrel Strength Bourbon
117.2 Proof
MSRP: $89.99
Horse Soldier Reserve Barrel Strength Bourbon
It’s so good I went out and bought a second bottle
History
Horse Soldier has a tremendous backstory, according to its website. After 9/11, Green Berets went into Afghanistan, some on horseback, and were dubbed the “Horse Soldiers.” Then, in 2015, a group of friends traveled to Yellowstone and while there attended their first distillery tour, which sparked a passion for bourbon. The Horse Soldier team learned about distilling and later launched Horse Soldier.
Horse Soldier Reserve Barrel Strength Bourbon
Mash bill:
70% corn, yellow dent 2; 20% wheat; 10% barley [2]
Let’s taste it:
🛏 Rested for 15 minutes in a Glencairn glass
👉🏻Nose: Sweet berries, oak, sweet corn, brown sugar, allspice, fresh Lillies
👉🏻Taste: Dark brown sugar, oak, vanilla, grain
👉🏻Finish: Long, rich, little burn, sweet corn, vanilla, pepper
Horse Soldier Reserve Barrel Strength Bourbon
Summary
From the first sniff I could tell this was something special. It took me a while to figure out the floral scent; at first, I thought it was eucalyptus but over time, the scent changed and instead, it reminded me of Lillies. The sweet corn smell had me thinking of corn on the cob with butter. The balanced taste provided a potpourri of flavors that popped a little at a time. Take a small taste, warm it in your mouth and you’ll see what I mean. The flavor goes from corn to grain to oak to vanilla, as if this bourbon was designed to confuse my tastebuds —- and make me go back for more. Good strategy. It worked. The long finish has medium heat, just enough to get a nice warm feeling in your chest. Some will see the proof and immediately think they need ice or water, but it doesn’t. Try it neat. You won’t be sorry.
Conclusion – Horse Soldier Reserve Barrel Strength Bourbon
There are few bourbons I taste and immediately seek a second bottle, generally because of cost. I’d love to have another Russell Reserve 15, Willett Family Estate 14, or EH Taylor barrel proof, but that isn’t happening, not now anyway. But after my first glass of the Horse Soldier Reserve Barrel Strength Whiskey, I went to my local store and found they had a couple. I bought one. For the price, it’s a winner, and already a contender for the Bourbon Resource 2025 awards.
Have you tried the Horse Soldier Reserve Barrel Strength Bourbon? What do you think?
THE BOURBON RESOURCE SHOUTOUT
Lots of people write bourbon newsletters and, from experience, it’s hard. I’m fortunate to have a dedicated group of readers that keeps growing, and I appreciate every one of you.
This month, I’m giving a shoutout to Steve Gentry, a Bourbon Resource reader who publishes the quarterly King Bourbon, the Bourbon Zine (pronounced zeen). Each print periodical tackles a single subject. Issue #3 caught my eye because I’m a fan of IW Harper and its history. I have all three expressions and was wowed by Steve’s deep dive into Harper's history. He does a terrific job weaving a narrative that’s educational and fun. Each 24-page publication costs $5 plus shipping, a steal given the time it takes to research, write, and pay to print.
That’s it for this month. Thank you to our friends at Bourbon Obsessed, who continue to be a terrific help and resource. They have a tremendous catalog of bourbon and distillery reviews that you can see here:
Ray Marcano writes and publishes the Bourbon Resource monthly, and he’s president of the 32 Staves Society. He’s a bourbon lover and long-time journalist who freelances for some of the country’s largest media brands. He’s the former national president of the Society of Professional Journalists, a two-time Pulitzer juror, and a Fulbright fellow. He also writes Rational Reason, a free, three-times-a-week newsletter on political and societal issues.
[1] The distillery requires a $1,000 deposit, and the other $161 accounts for taxes and fees
[2] The mash bill comes from various online sources
Lotta big news, as well as emerging and ongoing shifts, in the industry, and I too am curious to see how it all shakes out, particularly for consumers. Thank you so much for the shout out, and happy new year!