Crafting Confidence: The Intersection of Bourbon, Financial Wellness, and Millennial Tastes

With cocktail culture sweeping across the United States, bourbon, a specialized form of whiskey, has captured the hearts of millennials. Sales of American whiskey saw an impressive 8.1% growth in 2017, as reported by the Distilled Spirits Council.

What could be driving this impressive growth in the bourbon market? Could it be that the allure of specialty bourbon like Pappy Van Winkle has captured the attention of bourbon enthusiasts? For the new wave of business elite – including bankers, entrepreneurs, traders, and second-generation wealthy individuals – investing in a bottle of Pappy Van Winkle 23-year-old at almost $3000 is simply part of the game. With the belief that self-worth is tied to net worth, having a bottle of Pappy on the table can easily spark envy among bourbon-loving friends.

Financial therapists study how people think, feel, and behave around money, gaining insights into buying decisions driven by underlying beliefs. These beliefs may revolve around the idea that accumulating wealth and possessions can enhance social status and overall happiness. It's not uncommon for individuals to make purchasing choices based on their self-image, with displays of affluence serving as a means of self-validation, social recognition, and personal fulfillment. The surge in bourbon popularity reflects this consumer behavior pattern.

For a glimpse into today’s pop culture icons of wealth, Wall Street, and greed, one only needs to watch Showtime’s mega-hit, Billions. Whether celebrating a big hedge fund return, destroying an enemy, or seething over a run-away wife, the character titans of Wall Street are often shown cracking the seal of prestigious bourbon. Kavalan Whiskey, Michters Bourbon—clearly the spirit of choice for these psychologically complex and often wildly decadent characters. But are they any different from previous generations of whisky lovers? Mark Twain’s thoughts on whiskey: “Too much of anything is bad, but too much good whiskey is barely enough.”

The influence of bourbon on our culture has been evident over time. Recognizing the differences between generations is crucial for consumer marketing in the spirits industry. While Baby Boomers are driven by money and brand loyalty, Generation X and Millennials have unique motivators. Millennials, representing a significant portion of spirits consumption, prioritize authenticity and constantly seek new flavors. They are willing to invest in experiences rather than just products, indulging in luxury items and seeking fun and exclusive moments to share with friends. This generation's affinity for extravagance is reflected in their pursuit of unique experiences.

According to Nielsen’s 2015 Beverage Alcohol Media Report, millennials do seek deals, but they “won’t give up quality or taste when it comes to their alcoholic beverage purchases. As a result, a large percentage say they will not spend their money on mass-market alcoholic beverages. That’s one factor that has led to the growing popularity of craft beverage alcohol products.” In addition, 41 percent say they associate a higher price with higher quality most or all of the time. Jeff Hopmayer, a global industry expert from Brindiamo Group, has witnessed exponential growth. Jeff’s insights include “authenticity and discovery are really important to this millennial consumer. There is a strong desire to be educated and knowledgeable about what they are drinking and why.”

Explore the array of enticing options found in modern speakeasies across cities like New York, Chicago, San Francisco, and Denver, where high-end legacy distilleries like High West Distillery in Park City, Utah, and George Washington’s Distillery & Gristmill in Mount Vernon, Virginia, continue to satisfy the craft and esteem sought after by new bourbon enthusiasts. Additionally, newer establishments like Mythology in Denver, Colorado, and Willett Distilling Company in Bardstown, Kentucky, offer fresh and exciting alternatives that perfectly complement the burgeoning craft cocktail scene.

Millennial and co-founder of Mythology Distillery Scott Yeates knows what his generation craves. According to Scott, “Millennials flock to adventure and unique spaces to explore a new world of spirits,” driving the opening of his eclectic new space in one of Denver’s hippest neighborhoods. “The craft cocktail resurgence is further increasing consumer demand for craft spirits, and we see an opportunity for distilleries to push creative boundaries in an approachable way.”

Similar to how breweries revolutionized the industry in the early 2000s, Mythology stands out as a distillery focused on innovation, education, and quality. This dedication is fueled by the millennial generation's passion for locally sourced and crafted products, prioritizing quality and fostering a sense of community.

A financial therapist might question a Millennial's decision to spend thousands of dollars on a bottle of bourbon. However, for a young executive, the ability to invest in such a purchase goes beyond just the cost. It allows them to provide their colleagues, clients, and friends with a unique and memorable experience. It symbolizes power, success, and the image they project to the world. For them, opening that bottle of bourbon is not just about pouring a drink; it's about creating an experience, adding significance to moments that might otherwise feel ordinary. While a regular bottle of beer is just a drink, enjoying Kentucky Owl bourbon transforms that drink into a memorable experience.

Maureen Kelley is a private wealth manager and consultant. She has completed graduate studies in financial therapy and writes about current cultural trends in money and behavior.