Sazerac Company, Inc.

Thanks for having me.

So, which is Sazerac.

Sazerac, every time somebody wanted to get rid of a well-known brand with struggling volumes that wasn't premium, they were like, we'll take that.

You know, they bought a lot of the Spears brands from Constellation Brands.

When they were looking to offload their low-cost stuff, they bought Svedka from them a couple of years ago, and that's doing really well.

she's now a food analyst another beverage actually just just to make sure yeah

But I was talking about zigging and zagging, you know, and I remember using a baseball analogy at the time saying, you know, the Milwaukee Brewers are a highly analytical team that have always kept relatively low budgets, didn't go out and get big time players or pay big contracts in order to find, you know, value.

And that's kind of what Sazerac does.

So they'll do a class.

And last year we went and they had a Sazerac class.

So they did Handy and all the Sazerac.

That was like the best class we'd ever been to up there.

And they have all you can drink VTAC.

I would have never...

That would not have been my first thought.

I am going to only for the Sazerac 18 because it was phenomenal this year and I could not find a bottle.

while the 23-year has now inched up to $500 at retail.

And this is the first year that we're also seeing this, not only just because there is a huge barrel glut, sales have been down for the past year, distributors are in liquidation, but even back on Bourbon Community Roundtable number 42, this happened in 2020, we had all actually praised Sazerac for not raising prices at the time.

And that was a time when the market could actually probably bear price an increase.

Yet here we are six years later and they have moved the number up in a down market.

So increasing it a little bit.

Yeah.

Buffalo trace is getting, or Sazerac's getting more money from the distributor.

Distributors getting a little money from more money from the retailer who isn't going to carry that lion's share of selling a old rip 10 year for 800 bucks when they spent, you know, 60 bucks on it.

Call it 15 million barrels laying down in Kentucky.

70% of that is spoken for with the bigs, Jim Beam and Sazerac, et cetera, Makers Mark.

And then that leaves 30%.

You know, what's 30% of 15 million? 4.5 million barrels? You know, you know, sitting there extra.

That's right.

Yeah.

So what's your thoughts on price compression? I mean, I've seen like some really good stuff from Buffalo Trace, you know, as an example, Sazerac seems to be compressing Diageo.

You can see Captain Morgan for $12.99 on the shelf.