As an expert sommelier and brewer, I have had the opportunity to witness the distribution and allocation of bourbon firsthand. It is a complex and often controversial process that involves a variety of factors. One of the key aspects of bourbon allocation is the destination of the bulk of the allocated bottles. In my experience, the majority of these bottles tend to find their way to chain liquor stores.
Chain liquor stores, with their large customer base and extensive reach, have a significant advantage when it comes to receiving allocations of bourbon. They are often able to purchase in bulk and have the sales volume to justify receiving a larger allocation. This makes sense from a business perspective as well, as the larger stores are more likely to sell a greater quantity of bourbon, ensuring a higher turnover and increased profits.
On the other hand, independent shops, which may have a more curated selection and a loyal customer base, often find it challenging to obtain coveted bottles through allocation. These smaller establishments may not have the same sales volume as chain stores and therefore are not given as much opportunity to acquire special releases. This can be frustrating for both the shop owners and their customers who are passionate about bourbon and eager to try new and limited-edition releases.
The allocation process is often based on a carrot-and-stick approach, where the size and sales volume of a store play a significant role. The bigger the store, the more opportunities they have to receive a case or two of something special. This creates a sort of hierarchy within the industry, where the larger retailers have a distinct advantage over the smaller ones.
I have seen firsthand how this allocation process can create tension and competition among retailers. Independent shops often have to work harder to secure allocations, sometimes going to great lengths to build relationships with distributors or attending industry events to network with producers. It becomes a constant battle to prove their worth and demonstrate that they can effectively sell and promote the allocated bottles.
It is important to note that while allocation is often based on sales volume, it is not the only determining factor. Relationships with distributors and producers also come into play. Building a strong rapport with key industry players can sometimes result in preferential treatment when it comes to allocations. This can mean that even smaller independent shops have the opportunity to receive coveted bottles if they have cultivated the right connections.
The allocation of bourbon is a complex process that heavily favors chain liquor stores due to their larger sales volume. Independent shops often struggle to obtain allocations of coveted bottles, as the system tends to prioritize the bigger players. However, it is not solely based on sales volume, as relationships with distributors and producers can also influence the allocation process. This dynamic creates a competitive landscape within the industry, where smaller shops must go the extra mile to secure allocations and satisfy their passionate bourbon-loving customers.