White Oak Shortage Crimps Jack Daniel's Profits
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Jack Daniels Cooperage

Whiskey distiller Brown-Forman said the rising cost of white oak for its whiskey barrels has cut into profits. With one of the most advanced barrel making plants in the world, the company is still running into a shortage of oak barrels as its Jack Daniel's and other whiskey and bourbon lines production rises.

During its first quarter earnings report this week, Jane Morreau, Brown-Forma Chief Financial Officer, said,  "We had cost pressures from wood. I think I talked about this in the fourth quarter, just given the supply demand constraints there in the cost of wood. So, we expect that to abate over the balance of the year and our costs are coming down."

SLIDESHOW

Automating Jack Daniel's Oak Barrel Cooperage

Cutting white oak staves consistently and automating the production of barrels is profiled in this slide show.


Instilling automation to a traditionally a handcrafted operation earned Jack Daniel’s Cooperage the 2014 Wooden Globe for Innovator of the Year by the Woodworking Machinery Industry Association. Brown-Forman is the only major distiller in the world that owns and manufactures its own barrels The Jack Daniel’s Cooperage makes white oak barrels for maturing Jack Daniel’s, Early Times, Old Forester and Woodford Reserve.

Larry Combs, senior vice president/general manager for the cooperage operation, says about half of the flavor and all of the color observed in a bourbon or Tennessee whiskey comes from the wood, making the control of that supply and quality critically important. 

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Bill Esler | ConfSenior Editor

Bill wrote for WoodworkingNetwork.com, FDMC and Closets & Organized Storage magazines. 

Bill's background includes more than 10 years in print manufacturing management, followed by more than 30 years in business reporting on industrial manufacturing in the forest products industries, including printing and packaging at American Printer (Features Editor) and Graphic Arts Monthly (Editor in Chief) magazines; and in secondary wood manufacturing for WoodworkingNetwork.com.

Bill was deeply involved with the launches of the Woodworking Network Leadership Forum, and the 40 Under 40 Awards programs. He currently reports on technology and business trends and develops conference programs.

In addition to his work as a journalist, Bill supports efforts to expand and improve educational opportunities in the manufacturing sectors, including 10 years on the Print & Graphics Scholarship Foundation; six years with the U.S. WoodLinks; and currently on the Woodwork Career Alliance Education Committee. He is also supports the Greater West Town Training Partnership Woodworking Program, which has trained more than 950 adults for industrial wood manufacturing careers. 

Bill volunteers for Foinse Research Station, a biological field station staddling the border of Ireland and Northern Ireland, one of more than 200 members of the Organization of Biological Field Stations.