Buffalo Trace bourbon has become increasingly popular and sought-after over the past decade, resulting in high prices and limited availability. Several factors contribute to the premium pricing of Buffalo Trace bourbon:
High demand
Buffalo Trace Distillery has won numerous awards and accolades for its bourbons in recent years. This has significantly increased demand among bourbon enthusiasts and collectors. However, the distillery has limited production capacity, so it cannot keep up with rising demand. Scarcity drives up prices.
No shortcuts in production
Buffalo Trace uses traditional methods in its bourbon production process, without cutting corners. For example, its bourbons are aged in new charred oak barrels for years, never less than the legal minimum. This adds significant costs but preserves quality and flavor. Many other producers take shortcuts to reduce costs.
Premium ingredients
Buffalo Trace sources high-quality grains from local farmers in Kentucky. It uses a higher percentage of corn than other bourbon brands, giving a signature sweet taste. The distillery also utilizes limestone-filtered water, adding to a more premium product. These superior ingredients justify higher prices.
Private barrel selections
Consumers can purchase exclusive private barrel selections of various Buffalo Trace bourbons from liquor stores. These are hand-selected casks with distinct flavors. Due to their exclusive nature and scarcity, private barrel selections understandably demand high premiums.
Production Process Behind Buffalo Trace
The time-honored production process used at Buffalo Trace Distillery further explains the high pricing:
Grains
Buffalo Trace sources corn, rye, wheat, and malted barley from local Kentucky farmers. This gives it precise control over the grain bill (mash bill) that forms the foundation of its bourbons. Corn, rye, wheat ratios vary across its brands.
Fermenting
The grains are combined with water and yeast to start the fermentation process, which converts sugars into alcohol. Buffalo Trace carefully controls fermentation temperatures and durations to extract specific flavors. This fermentation process can take several days.
Distilling
After fermentation, the liquid mash is distilled in copper pot stills. Copper interacts with compounds in the mash to produce a distinct, smooth bourbon. Buffalo Trace operates 16 small pot stills, unusual in the industry, allowing for great precision.
Barrel Aging
New charred oak barrels imported from the Ozark Mountains in Missouri are filled with the distilled spirit for aging. These barrels impart color, flavor, and aroma compounds. Buffalo Trace ages its various bourbons for different durations, from 4 years to over 20 years for the elite brands.
Blending
For most bourbons, Buffalo Trace artfully blends spirits of different ages from various barrels to create complex, balanced flavors. This is another distinctive process perfected by their master distillers.
Bottling
After the precise aging and blending process, the bourbon is filtered, diluted to 90 proof or higher, and bottled. Bottles are stamped with the brand label as well as production date information.
Brands and Price Differences
Buffalo Trace Distillery produces many award-winning bourbon brands at different price points. Some notable examples:
| Brand | Starting MSRP | Age |
|---|---|---|
| Buffalo Trace Bourbon | $25 | 6-8 years |
| Eagle Rare | $30 | 10 years |
| Blanton’s | $60 | 6-8 years |
| Elmer T. Lee | $80 | 12 years |
| George T. Stagg | $99 | 15+ years |
| William Larue Weller | $99 | 12+ years |
| Pappy Van Winkle 15 Year | $119 | 15 years |
| Pappy Van Winkle 20 Year | $199 | 20 years |
| Pappy Van Winkle 23 Year | $249 | 23 years |
As shown, the extended aging times required for the premium, limited edition bourbons directly drive up their pricing. While Buffalo Trace’s entry level bourbon is reasonably affordable, the Pappy Van Winkle expressions demand ultra-premium prices approaching $1000 on the secondary market due to extreme scarcity.
Awards and Accolades
Here is a brief selection of the many honors achieved by Buffalo Trace Distillery over the past decade:
| Year | Award/Recognition |
|---|---|
| 2021 | Whisky Magazine’s World Whiskies Awards – Distiller of the Year |
| 2020 | San Francisco World Spirits Competition – 14 Double Gold Medals |
| 2019 | Whisky Advocate – Distillery of the Year |
| 2018 | New York World Wine & Spirits Competition – Best American Whiskey |
| 2017 | Whisky Magazine’s World Whiskies Awards – Best American Whiskey |
| 2016 | Whisky Magazine’s Icons of Whisky – Lifetime Achievement Award |
This tremendous critical acclaim within the spirits industry translates directly into increased demand from consumers. When the experts consistently rave about Buffalo Trace bourbons, it naturally boosts the brand’s prestige and makes supplies even more scarce.
Secondary Market Prices
On the secondary market, meaning online resellers and auction sites, Buffalo Trace products sell for huge premiums over MSRP:
| Brand | MSRP Price | Secondary Market Price |
|---|---|---|
| Pappy Van Winkle 15 Year | $119 | $899 |
| Pappy Van Winkle 20 Year | $199 | $1599 |
| Pappy Van Winkle 23 Year | $249 | $3999 |
| William Larue Weller | $99 | $799 |
| George T. Stagg | $99 | $599 |
As demand dramatically exceeds supply for the hardest-to-find Buffalo Trace antique collections, secondary prices are inflated 4x to 10x over MSRP. Counterfeit bottles are also common due to the hype.
Factors Driving Scarcity
Why is it so hard to find certain Buffalo Trace bourbons, even at extremely high prices? Here are the key factors:
No excess inventory
Unlike some distilleries that stockpile excess whiskey to manage supplies, Buffalo Trace sells nearly all the whiskey it produces each year. This leaves little safety stock or “buffer” when demand spikes.
Production limits
Despite significant expansion over the past decade, Buffalo Trace has physical limitations on production capacity at its historic distillery. It can only produce so much whiskey based on its current stills, barrel warehouses, and bottling facilities.
No shortcuts to meet demand
Buffalo Trace refuses to take shortcuts to increase output, like reducing aging times or procuring whiskey from other sources. It prioritizes quality and tradition over volume. This constraint keeps supply tight.
Soaring demand
As awards roll in and Buffalo Trace earns cult status in the bourbon world, demand has skyrocketed. Retailers constantly sell out of the most sought-after brands. The distillery simply can’t keep up with demand.
Hoarding and resale
Bourbon collectors and hoarders exacerbate shortages of brands like Pappy Van Winkle by buying up scarce bottles solely for resale at huge profits. This speculative activity removes supply from normal retail channels.
Is Buffalo Trace Worth the High Prices?
For bourbon enthusiasts with the means to afford premium pricing, Buffalo Trace’s brands absolutely deliver exceptional quality and are worth their high price tags. However, more casual bourbon consumers or those with limited budgets may not find Buffalo Trace worth the hype.
Worth it for…
– Bourbon collectors seeking rare, allocated brands
– Connoisseurs who appreciate well-aged, complex bourbons
– Fans who enjoy discovering hard-to-find niche brands
– Aficionados willing to pay for quality craftsmanship
Not worth it for…
– Everyday bourbon drinkers or novices
– Value-driven consumers on a budget
– People purchasing mainly for social status
– Drinkers who prefer readily available brands
While no one can deny the superb quality of Buffalo Trace’s bourbons, the value depends greatly on personal taste preferences and financial situation. The distillery’s hype machine has made its brand more exclusive than ever.
Conclusion
Buffalo Trace bourbon carries premium pricing due to the brand’s prestige, carefully crafted production methods focused on quality over quantity, extremely high demand that outpaces finite supply, and secondary market greed. For some bourbon lovers, the craftsmanship and superb flavors make it worth the hunt and high cost. However, more casual drinkers may not find such expensive bourbon worth the investment. In the end, Buffalo Trace has earned its reputation for excellence in the bourbon industry – but that reputation comes at a steep price.