Bourbon, a whiskey made from fermented grains such as corn, rye, or barley, has been around since the 18th century when Irish and Scottish immigrants settled in North America. These immigrants came to the New World with distilling skills and used corn to make bourbon because it was the most abundant grain. Bourbon was not declared a distinct product of the United States until 1964 when Congress established outlines for manufacturing the product.
Interest in bourbon waned during Prohibition, which lasted from 1920 to 1933. During this time, distilleries all around the United States were shut down.
Between 1940 and 1970, however, the interest in bourbon spiked. In the 1970s, Americans considered bourbon to be the No. 1 alcoholic drink, and eventually, its popularity spread throughout the world. However, by the 1980s, drinks such as vodka, gin, and wine coolers (the choice of 1980s’ youth) became more popular than bourbon.
In the past two decades, however, bourbon has worked its way back to the top globally in classic cocktails and non-artificially flavored spirits. The US is home to hundreds of bourbon distilleries, with more than 70 in the state of Kentucky alone.
However, since the pandemic, there has been a marked increase in consumption of bourbon and a change in its drinkers. According to a 2020 article in online publication VinePair, bourbon consumption began to slowly climb from the begining of 2010 but did not spike until March 2020, three weeks into the pandemic.
In the past, bourbon was characterized as an old man’s drink, but in recent years, adults 25 to 54 have enjoyed bourbon in cocktails such as the Old Fashioned and the Manhattan. Data shows that bourbon is on its way back to becoming king in the US.
Bourbon is also generating employment. In 2019, The Kentucky bourbon industry generated $8.6 billion annually, contributing to creating over 20,000 jobs and paying out an annual payroll of more than $1 billion. Moreover, projections estimate that over $2.3 billion in capital projects are underway at Kentucky distilleries, indicating that the boom in the state is far from over.
The growth of bourbon started some 40 years ago with the introduction of small-batch, single-barrel production, which allowed distilleries to make high-quality whiskey. This began an era of premiumization and led to bourbon developing its reputation as a high-quality drink.
In the 1990s, the US signed both NAFTA (North American Free Trade Agreement) and an EU agreement, opening the global market. This put American whiskey and bourbon brands on par with other global whiskeys. Additionally, these trade agreements heralded in more exports and established global standards for whiskey. This, combined with the “cocktail culture” of the new millennium, inspired bartenders to rediscover classic bourbon drinks.
At the same time, bourbon tours began around the country, giving young people the chance to visit distilleries and taste the liquor straight from the barrel. In 1999, when the Kentucky Distillers’s Association founded the Kentucky Bourbon Trail, only 10 distilleries were open for visitors. Today, the trail has expanded to 38 distilleries across the state. In 2018, the tour had a record 1.4 million visitors.
