Líderes del Bourbon: “Esta es una industria resiliente”

Is the whiskey glass half full or half empty?

On Monday night at Louisville Business First’s Bourbonomics event, a panel of leaders from the bourbon industry answered a variety of questions pertaining to the most pressing issues facing the industry at the moment — beginning with their opening statements.

Victor Yarbrough, co-founder and CEO of Louisville-based Brough Brothers Distillery, proclaimed to the audience at the Ice House in Downtown Louisville that he was “forever the optimist” and that he saw “pockets of growth” in spite of the recent headlines.

“I think it’s [about] figuring out what’s working and what’s not working todetermine where we’re going,” he said of the industry’s current course. Next to him sat Andrea Wilson, COO and master of maturation at Michter’s Distillery, who echoed that she was “probably forever the optimist.”

“It’s a very exciting opportunity to see the global opportunity out there, to see so many people coming to the category and making investments … I see no stoppage of bourbon tourism. People are coming in droves. They’re excited,” Wilson said.

Then there was Eric Gregory, president of Kentucky Distillers’ Association, who said that he was an “eternal pessimist” — when it came to the barrage of issues that distillers must face in addition to their everyday tasks of running their daily operations.

“Most of the challenges we are facing have nothing to do with whiskey making, and these are things that are out of our control, so that frustrates me at times. …But at the same time, this is a very resilient industry. I mean we survived Prohibition, right?”

Somewhere in the middle of that spectrum was Jane Bowie, co-founder of the newly opened Potter Jane Distillery. Her startup operation in Springfield, Kentucky, is starting to lay down approximately 75 barrels a day.

“There are days when I think about the short term and getting through as a startup facility that’s $50 million in debt, it is terrifying, but this is a marathon,” Bowie said.

“You don’t even plan for decades in this industry. You plan for centuries. Like I hope it survives long enough for my grandkids to screw it up,” she joked.

Global challenges

The first question, of course, was about tariffs — and in particular, the actions that Canada has taken in recent weeks to remove U.S. liquor from their shelves as a response to various threats from the Trump administration.

“That was concerning,” Gregory said. “I think [Brown-Forman CEO] Lawson Whiting said it best: That is worse than a tariff itself, because you’re not even given a chance to compete.”

Although Gregory and his team have been dealing with issues of tariffs for about seven years, he said the thing that stands out the most this time are “geopolitical relationships” that are in play.

Gregory said that many people from Canada have reached out to his office to let them know, essentially, that the country’s actions have nothing to do with the whiskey and everything to do with a perceived attack on Canada’s sovereignty. Wilson said that Michter’s ships internationally to more than 80 countries, with no plans of shrinking their global footprint.

“We’re committed to our export business,” she said. “We’re committed to continuing to grow.”

Yarbrough said that Brough Brothers, which hopes to open a new facility in near Downtown Louisville by late April, is currently in the midst of trying to form an international presence as part of one of its main goals for 2025.

“In general for us, I think it’s about the uncertainty. Is it Canada today? Is it Mexico tomorrow? Is it China the next day?” Yarbrough said. Bowie said that Potter Jane as well has global expansion on its 20-year plan.

Addressing THC-infused drinks

One of the questions that caused some murmurs in the crowd centered around the evolving legislative situation with THC-infused beverages. Here in Kentucky there was a shell bill, Senate Bill 202, that was signed by Governor Andy Beshear Tuesday and will regulate and restrict the sale of the beverages. Note: In February, I wrote about the rise of Louisville-based Hectare’s Cannabis Innovations, which had more than a 700% jump in sales on its canned product alone from 2023 to 2024.

The bill initially had a one-year moratorium on the sale of the beverages. That has since been amended — but does restrict the amount of THC in a can to five milligrams and require the beverages to be regulated by the state’s Department of Alcoholic Beverage Control (ABC).

“We’re not afraid of competition,” Gregory said, “but one of the things we’ve said about the cannabis industry since I’ve been here is we’re fine with it as long as they are taxed and regulated like we are in the bourbon industry.”

Gregory added that collectively the industry pays $400 million, on average, in local and state taxes, making it the most taxed industry in the state.

Bowie said that ignoring the surge of the hemp industry in the beverage space is not the response for beverage alcohol producers.

“I think when you talk to liquor store owners, it’s definitely where the younger consumer is going. … I think [we should try] to understand it, trying to understand the occasions and why people are leaning that way. I don’t know that it necessarily changes what any of us do in the distilleries or manufacturers, but I think pretending like it’s not real and here is probably the wrong move as well.”

Top of the list

At the end, one of the attendees asked each panelist to name the top item on his or her “Christmas wish list.”

Bowie wanted a better transportation infrastructure to help bourbon tourists — and locals alike — be able to get to the distilleries in an easier way.

Yarbrough had an initial short response: “RTDs” (referencing ready-to-drink products).

Wilson wanted more direct flights from the West Coast to Louisville, mentioning the large percentage of distillery tourists who travel from there. In the same vein, she also mentioned direct international flights.

“If it takes you a day to get here and it takes you a day to get home,” Wilson said, “that’s more challenging.”