Issue link: http://read.dmtmag.com/i/437957
w w w. v w m m e d i a . c o m J a n - F e b 2 015 | V I N E YA R D & W I N E RY M A N A G E M E N T 7 1 that the increase in whiskey sales began in 2010 and has only inten- sified in recent years, with bourbon the largest sub-segment. "There is a rediscovery of whiskey, particular- ly among younger males," Brager said. He noted that double-digit dol- lar growth is expected to continue over the next 12 months. Unlike wine, where there are a variety of oak options, bourbon is made exclusively in charred, new American oak barrels. The barrels typically are not aged for several years prior to use as they are in the wine industry. As a result, they are considerably less expensive – often one-third to one-half the cost. Still, as the whiskey barrel demand has spiked and supply has been squeezed, some spirits producers have even been seeking out wine barrels for their products. "For the first time, we've started to have spirits companies coming to us saying, 'Hey, can you supply us with any American oak what- soever?'" said Michael Mercer of Charlois Cooperage USA, based in Cloverdale, Calif. In addition to a surge in whiskey production and sales, wet weather has also played a role in the short- age. "The wood cutters tell me that there are plenty of trees avail- able," said Chris Hansen of Seguin Moreau in Napa. "But in some areas, in Minnesota and Wisconsin, it's been wet all year, so they can't get into the forest to get the trees because they can't get their equip- ment in there." The aftershocks of the Great Recession have also played their part. "In 2008 when the economy went down, everything stopped," Stout said. "It wasn't just wine that slowed down. It was housing and lumber and pallets. Nobody wanted logs. So after a while, the loggers had to go find different jobs. Then three years later when all of a sud- den everybody needs wood, we've got half the (labor) force to pull the trees out." Three successive bum- per crops for wine grapes have also contributed to the problem. COOPERS BEAR THE BRUNT Due to the increased demand and availability, cooperages have seen log prices increase by as + There is currently a short- age in American oak supply. + One reason for the shortage is believed to be increased whiskey production. + As a result of the short supply, log prices have increased dramatically, which has led to higher prices for American oak barrels. + The situation is expected to continue at least through 2015. AT A GLANCE Chris Hansen of Seguin Moreau says wet conditions in certain logging regions have prevented trees from being harvested.