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Bourbon Pursuit

563 - The State of Contract Distillation for 2026

Bourbon Pursuit

Bourbon Pursuit

Food, Arts, Hobbies, Leisure

4.8925 Ratings

🗓️ 23 April 2026

⏱️ 63 minutes

🧾️ Download transcript

Summary

Is the era of the secret sourced bottle finally over, or are we just getting started? Today, we’re digging into contract distillation. We’re tracing the roots from the early days of "shhh, don't tell them it's MGP" to the massive, high-tech operations like Bardstown Bourbon Company that have turned being a NDP into a badge of honor. But as you, the consumer, gets more sophisticated, the demand for transparency is hitting an all-time high, and we’re talking about why "faking the funk" with a made-up story just doesn't fly in 2026. We also tackle the elephant in the room: market oversaturation. With speculative investments pouring in and foreign tariffs squeezing exports, the landscape is shifting under our feet. It's not all bad news. We’re envisioning a true whiskey renaissance as those massive inventories of aging barrels finally hit the market, likely leading to some of the most unique, high-quality releases we've ever seen. Show Notes: Historical significance and evolution of contract distillation Increased consumer interest in whiskey authenticity and sourcing Key players in the current contract distillation landscape Risks and opportunities for new distilleries entering the market Discussions on market oversaturation and speculative investments Effects of foreign tariffs on the whiskey export business Predictions for a bright future in whiskey with innovative barrel-aged flavors Importance of strong customer relationships for contract distillers Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

30 years ago, you could not be an established what we call NDP and be proud.

0:05.6

You know, you could be an independent bottler in Scotland puffing your chest out as one of the best in the land.

0:10.1

Could not do that here in America.

0:11.6

You know, it's only relatively new where blending is accepted and non-distiller producers are accepted as equals to the distillers.

0:32.3

Music distiller producers are accepted as equals to the distillers. This is Bourbon Pursuit, the official podcast of Bourbon, bringing to you the best in news, reviews, and

0:38.6

interviews with people making the bourbon whiskey industry happen, and I'm one of your hosts,

0:43.2

Kenny Coleman.

0:44.3

So do you think the era of secret source bottles is finally over?

0:47.9

Or are we just getting started?

0:49.8

Well, today, we're going to start talking more about contract distillation.

0:54.3

We're going to start tracing back from the early days of the, you know,

0:57.7

sh, don't tell anybody that it's MGP, to the massive, high-tech operations like Bardstown

1:02.8

Bourbon Company that have turned being an NDP into almost like a badge of honor.

1:07.4

But, you know, as being the consumer, you get more sophisticated.

1:12.2

The demand for transparency is hitting an all-time high. And that's why we're talking about how you can't fake the funk

1:17.3

with a made-up story that just doesn't fly today. We also tackle the elephant in the room,

1:21.8

which we're seeing right now is market oversaturation. How do we deal with that? With speculative

1:26.8

investments pouring in and foreign

1:28.4

tariffs starting to squeeze the exports, the landscape is certainly starting to shift right

1:32.5

underneath our feet, but it's not all bad news. Because of this, we're now seeing a potential

1:37.9

true risky renaissance. As those massive inventories of aging barrels, they will hit the market

1:43.0

eventually, likely leading

...

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