Lowering The Bourbon Supply Chain Is A Shortage Of Barrels

1628 Words Nov 22nd, 2015 7 Pages
Anyone familiar with the alcohol industry knows that bourbon is urging at the moment. Production has steadily increased over the past 15 years and there seems to be no sign of it slowing in the near future. However, this does not mean that the bourbon industry has maximized the potential of its supply chain (Lariviere, 2015).
One significant risk impacting the bourbon supply chain is a shortage of barrels. There is a federal law requiring that for a whiskey to be called bourbon it must age for two full years in a “new” oak barrel. One would think that this law would cause an issue in that the supply of lumber to create the barrels was not sufficient. That, however, is not the case. The actual issue at hand is that there is a shortage of loggers. While the bourbon industry is urging at the moment and it does create significant revenue for the lumber industry, that alone is not sufficient to keep logging companies in business. Thus, a lack of loggers has resulted in a reduction in the amount of “new” oak barrels available for aging bourbon (Lariviere, 2015)..
Another potential risk that could significantly impact the bourbon industry is climate change. Climate change has the potential to severely alter weather patterns that are vital for the process of aging bourbon. Barrel expansion and contraction is dependent on the changing of the seasons. Barrels are rotated throughout warehouses as the seasons change. This process helps to successfully mature the bourbon. If significant…

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