Consumer Education Driving Whiskey Market, Per Brown-Forman Scientist
A Brown-Forman scientist believes the current and future whiskey market is driven by consumer education that drives the industry toward better products.
Cole Irvin, Brown-Forman’s Senior Scientist – Process R&D and Whiskey Development (pictured), in an interview with FredMinnick.com, said the evolution of the whiskey market is being driven not just by more educated whiskey drinkers, but also by a thirst for authenticity. The product, to these evolving consumers, is far more important than the marketing, Irvin said.
“It can’t just be a pretty bottle anymore – it’s got to taste good,” Irvin said. He said he has seen a fall-off in sales of “value brands” ($10-$15 whiskeys) as the taste for higher-end whiskey rises.
That said, there is still value to be had, per Irvin. He said there is still value to be found in the $20 and $30 range, but that it comes down to the consumer’s tastes. That, of course, goes back to consumer education.
“It’s got to taste good, no gimmicks,” he said. “You don’t take that education away.”
With that, Irvin said he sees growth ahead for premium expressions, with more options on the way as distilleries adjust. He predicts some craft distilleries that don’t adjust will either close or be acquired by larger distilleries.
He touched on barrel-finished expressions and reiterated that quality is still the standard – a sherry cask isn’t going to conceal lesser than product on its own.
“You’ve got to start by putting good whiskey in to get good whiskey out,” Irvin said. “There’s no fixing bad whiskey. Every consumer is different. If it’s me, I like a touch of sweetness. If you’re looking for just that, ‘I like this bourbon with a hint of sweetness’ or ‘a hint of that,’ barrel finishing allows us to play in that space. We’re using that natural old-world process of using different barrel types to extract new flavors and not change Old Forester from Old Forester or change Woodford Reserve from Woodford Reserve, but rather, here’s Woodford Reserve, but with a twist.”
And sometimes, that big hit might even be an accident, as he said was the case with Woodford Double Double Oaked. That product, which is now released annually, came about as part of the brand’s Distillery Series because there was overproduction of Double Oaked.
“Double Double Oaked was over-aged,” Irving said. “We projected sales to be higher than they were. We had no home for it, so the Distillery Series gave us an opportunity.”
The question was whether consumers would want to know what even more oak aging would do to the product. Turns out, the consumer lapped it up.
“Now we’re having to plan for Double Double Oaked because the consumer wanted more,” Irvin said. “Now, it’s a consumer-driven product. It’s innovation by opportunity sometimes.”
The Future
In short, the consumer will drive the future of whiskey. While there are reports – even fears – of the dreaded “Bourbon Bubble” popping, Irvin believes the future looks bright. He attributes this to the consumers’ search for flavor.
“Barrel finishes will continue,” he said. “Other things, like increased age, increased proof. We’ve seen that in the last five years, and I see that continuing. As the consumer becomes more educated, they find their sweet spots.”
Is it higher proof? More sweetness? More spice? That will drive more varied expressions, Irvin believes. And on the distiller’s side, more care is being taken to deliver those desired flavors, without sacrificing what consumers know the product to inherently be.
“Growing up in Louisville,” he said, “bourbon is just the flavor of home.”
Irvin offers as an example being part of the distilling team looking for flavors to take to the bourbon market, bourbon that will resonate with the more and more educated consumer.
“We go into the warehouse to find sources for this year’s Birthday Bourbon, then we try it at various proofs,” he said. “Finding these little nuances in the barrels is so fun.”
Proof positive that the distillers and blenders love the end product as much as the consumer, which should help propel the whiskey market forward.
-Kevin Gibson
Read more: Woodford Reserve Announces Release of Batch Proof