The Rise of Bourbon and the Impact of Kentucky Owl

Whiskey and bourbon are truly iconic American spirits with a rich history that has played a significant role in shaping the country as we know it today. Originating from Ireland and Scotland, these spirits made their way to the U.S. with settlers, who, with access to new crops, were able to put their unique American twist on production. These spirits have a storied past, from aiding George Washington in assembling his troops to being a staple for pioneers exploring new frontiers and even being the drink of choice during the Civil War.

Since its establishment, these spirits have experienced fluctuations in popularity. In recent years, there has been a significant surge in growth within this market sector.

Whiskey and the Millennial Generation

Millennials are actively contributing to the rise in bourbon popularity in various ways. With the economy on the upswing, there's a bit more spending power to go around. However, millennials have a genuine appreciation for handcrafted, authentic products. They seek out items with a compelling story and rich history. Bourbon checks all the boxes as it is American-made and crafted by skilled distillers. Additionally, there's a growing interest in mixed drinks, a craft that mixologists excel at. Social media plays a significant role in spreading this trend worldwide.

Whiskey Trend Statistics

• 95 percent of bourbon is made in Kentucky

• Between 2012 – 2017 sales exceeded $3.3 billion

• Two dozen distillers have opened in the past five years to keep up with consumer demand

• In 2017, American whiskey grew 8.1 percent

• In one year, $1.63 billion worth of spirits were exported from the U.S. around the globe.

• $9 million of that money was whiskey

Crafting Bottles of Bourbon

An incredibly popular bourbon to get your hands on is Kentucky Owl. It first hit the scene in 2014, thanks to the creative mind of Dixon Dedman. Prior to its debut, a top-tier bottle would set you back around $50. However, Kentucky Owl changed the game by pricing theirs at $170. What's remarkable is that Dedman isn't a distiller or distillery owner. The success of his bourbon comes from his talent for selecting and blending barrels to perfection.

Dedman's road to success truly began when Harrodsburg, Kentucky, transitioned from a dry county. Growing up in Harrodsburg and working at his family's inn, Dedman witnessed the burgeoning bourbon culture attracting numerous tourists seeking samples and tours. However, restrictions prevented guests at Dedman's Inn from enjoying alcohol. When an opportunity arose to change these laws, Dedman eagerly joined the movement. Following the successful vote, it wasn't long before he introduced bourbon sales in the main dining room.

Kentucky Owl

In 1879, Dedman's great-great-grandfather established a distillery along the banks of the Kentucky River, naming it Kentucky Owl. It quickly gained popularity and earned the moniker "the wise man's bourbon." Unfortunately, Prohibition forced its closure, but Dedman saw an opportunity to revive the legacy and enhance financial prospects. Seeking guidance from Jim Rutledge, a master distiller at Four Roses, Dedman experimented with various blends. Despite receiving mixed reviews, Dedman was determined to refine his creation.

After four years of carefully sourcing, blending, and tasting, the final combination was perfected. It was then bottled and priced with a touch of luxury. Word quickly spread through the grapevine and social media, causing a buzz. The initial batch of 1,400 bottles flew off the shelves so quickly that it never even left Kentucky.

“It has the potential to get up and stay among the world-class, luxury brands — it has that kind of cachet,” said Jeff Hopmayer, a strategic adviser in Nashville who has worked closely with several bourbon producers, including Kentucky Owl. “When I bring a bottle to a party, everyone freaks out.”

SPI Buys Kentucky Owl

Not long after the first batch sold out, Dedman received a call from Yuri Shelfer. He’s a Russian businessman and the owner of the SPI Group. They are a global drinks company known for Stolichnaya vodka, which was sold off in 2001 to the Russian government. Looking for another hot item to improve his portfolio, Shelfer became increasingly interested in Kentucky Owl. Under advisory from Brindiamo Group, Stoli Group® USA, LLC was able to acquire Kentucky Owl and invest in logistical improvements. SPI Group‘s president said:

“Kentucky Owl is a great next step for our portfolio of premium and luxury brands. Bourbons have been experiencing impressive growth recently, and we see a strong opportunity in the super-premium sub-category, in particular.”

Part of the agreement involves Dedman continuing his role as corporate ambassador and blender. The company has exciting plans in the works to create a diverse selection of Kentucky-produced whiskeys, catering to a range of price points.