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For the booze aficionados

Old 02-22-2015, 07:33 PM
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Default For the booze aficionados

How do these guys make money on aged booze? If say you have a 12 year old rum that is selling for $28 a bottle, after the distributor and the store and any other middle men, and the government get their cut of that, how can they afford to tie up their inventory for so long?

Think of the storage and cost of barrels. I cant think of too many other business that can do that. Also is it possible if that rum is blended with three rums and labeled 12 year old that could mean that each rum was only aged for 4 years each for a total of 12?


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Old 02-22-2015, 08:00 PM
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The distiller starts off with the rum costing $2 a bottle to produce.
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Old 02-22-2015, 08:15 PM
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Ingredients

Water
Sugarcane
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Old 02-22-2015, 08:16 PM
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Originally Posted by Reelintime View Post
Ingredients

Water
Sugarcane
you forgot the bottle,
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Old 02-22-2015, 08:36 PM
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Originally Posted by mikeloew View Post
you forgot the bottle,
The most expensive ingredient!
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Old 02-22-2015, 08:40 PM
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Look at Jack Daniels...From Business Insider Magazine

"The 1,700-acre operation has around 435 workers and ships out 119 million bottles in a year.

To meet rising global demand, the parent company Brown-Forman Corp. announced a major expansion for the distillery costing more than $100 million.
The expansion will boost the output to 142 million bottles a year."

..................

And Bacardi sells over 200 million bottles a year...for over 5 billion dollars.

....

Thats a lot of sugar and water.
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Old 02-23-2015, 12:25 AM
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12 year old rum.... meh
12 year old bourbon can be work of art.

Last edited by puppy; 02-23-2015 at 02:24 AM.
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Old 02-23-2015, 05:56 AM
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Originally Posted by puppy View Post
12 year old rum.... meh
12 year old bourbon can be work of art.
Gonna have to disagree with that one, I find good rum to be way more drinkable than most high end bourbons. I've had a bottle of Eagle Rare in the cabinet for a year, good rum barely lasts a week in there
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Old 02-23-2015, 05:59 AM
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Originally Posted by semperfifishing View Post
Look at Jack Daniels...From Business Insider Magazine

"The 1,700-acre operation has around 435 workers and ships out 119 million bottles in a year.

To meet rising global demand, the parent company Brown-Forman Corp. announced a major expansion for the distillery costing more than $100 million.
The expansion will boost the output to 142 million bottles a year."

..................

And Bacardi sells over 200 million bottles a year...for over 5 billion dollars.

....

Thats a lot of sugar and water.

All that just because of me.................dang.
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Old 02-23-2015, 06:05 AM
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ARRGH....

Blended Rums between 5 & 14 years! Around $25

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Old 02-23-2015, 07:44 AM
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I've always wondered about this kind of thing. It makes me think about how unique it would be to work in "business development" for a company like that. You're going to be a victim of decisions that were made 10-20+ years ago.
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Old 02-23-2015, 08:53 AM
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Originally Posted by ryan darrow View Post
I've always wondered about this kind of thing. It makes me think about how unique it would be to work in "business development" for a company like that. You're going to be a victim of decisions that were made 10-20+ years ago.
I think that's the case with any consumer product. Brand developers deal with scores of bad decisions and campaigns from the past that plague brands for many years.

Aged bourbon and rum is only a fraction of the overall spirits market. I've got a friend who is a master distiller at a small premium craft distillery and you would be surprised how little time is required to make some really good booze. I'm not saying its easy (it's actually quite complex), but it doesn't take years and years to get the desired results.

Oh yeah, the margin is incredible too. Plenty of meat left on the bone for the distillery even after the retailer and distributor takes a healthy cut.
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