Russia Targets Bourbon

News

August 4, 2014

As things heat up between the U.S. and Russia, a bourbon brand faces a Russian ban.

According to The Moscow Times, Russia’s state consumer protection watchdog is planning to suspend Kentucky Gentleman bourbon.

The article says the government agency found “signs of phthalates — organic chemicals — in the bourbon.”

The makers of Kentucky Gentleman indicated the Russian agency has yet to reach out to the company.

Kentucky Gentleman bourbon is a cheaper bourbon, but joins other agricultural goods caught up in the Russian trade feud.

I’m also aware of major brands cancelling marketing trips to Russia and Ukraine. They view the market as too risky right now.

But Russia and Ukraine love American whiskey.

From 2012 to 2013, American whiskey exports increased from  $1 billion to $1.5 billion thanks to reduced international tariffs and substantial increased demand in Russia. According to the Russian Federal Customs Service, American liquor imports increased by 67 percent from 2009 to 2013.  That number is likely to take a downward spiral if tensions continue.

People frequently ask me: What will stop bourbon’s rise?

Well, trade tensions with one of bourbon’s fastest growing markets does not help.

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