US private-equity group InvestBev says it remains positive on the growth prospects for Bourbon as the category undergoes a “correction”.
InvestBev has investments in more than 60 brands, with the majority of these being in Bourbon.
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In a statement, the group said it recognises “the near-term repricing of barrel assets” and believes the current “adjustment” is key for growth of the segment in the long-term.
“Every asset class experiences periods of correction,” Brian Rosen, the general partner of InvestBev, said.
“What we are seeing today is not dissimilar to the Bourbon downturn of the 1980s, when oversupply, shifting consumer preferences, and health trends pressured the industry.
“Yet that reset ultimately gave rise to the modern bourbon boom, with premiumisation and global demand creating one of the strongest multi-decade growth stories in consumer goods. This recalibration is history repeating itself – and it is setting the stage for the next wave of growth.”
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By GlobalDataAccording to InvestBev, Bourbon barrel production has dropped 12-15% in 2025 compared to 2023, which it described as “a deliberate pullback by distillers to rebalance inventories”.
It also noted 92% of Kentucky Bourbon is consumed domestically, protecting it from tariffs and “export volatility”.
The private-equity firm also stressed that a combination of the “disciplined supply adjustments” and “intact” premiumisation trends means the spirit remains “a non-correlated hard asset class with long-term stability and upside potential”.
The US whiskey market has been facing some tough trading conditions.
At the start of 2025, Brown-Forman announced plans to cut over 600 jobs from its global workforce and to shut a barrel-production facility in the US city of Louisville.
Speaking to Just Drinks in May on the GlobalData Consumer podcast, Rosen said InvestBev was “bullish” and was continuing to invest across the US drinks industry in spite of pressures on spirits sales and changing consumer drinking habits.
While he was positive about the long-term prospects for Bourbon, Rosen did note distilleries would have to shut as they face slowing demand.
“There needs to be – and there will be – three to four bankruptcies of distilleries. One has happened already and I won’t name them but they’ll be two to three more by the end of the year,” Rosen, said back in May.
“Post-Covid, the industry built up quite a bit. They thought, greedily so, that we can support producing four million barrels a year.
InvestBev continues to put money into the Bourbon category. In March, the group partnered with an unnamed “leading global asset manager” to inject up to $100m in Kentucky Bourbon barrels.
The firm also runs a $100m credit programme to support the Bourbon community, offering liquidity and financial aid to distilleries, brand owners and investors.
In January, InvestBev finalised an “eight-figure” barrel financing deal with Saga Spirits Group, also known as TKC Distilling Company.
The agreement with Saga Spirits will enable the acquisition of whiskey barrels to help the group with the launch of its whiskey brand, True Story.
