Bourbon is in an international demand and large companies are banking on it, The Associated Press reported.
"We are busier than I ever could have imagined," said Chris Morris, master distiller at Brown-Forman Corp., a producer of Woodford Reserve and Old Forester bourbons.
Distillers are, however, taking a risk by generating a large amount of bourbon, which needs to be aged at least two years, before they are even ordered, AP reported.
However, if the demand matches the supply, small and large companies can make some serious money. But if too much is made and there is little demand in a few years, future production would be in question, AP states.
Total revenues for bourbon and Tennessee whiskey increased 10.2 percent and reached $2.4 billion last year, according to the Distilled Spirits Council. Distilleries in Kentucky made 1.2 million barrels of bourbon last year, which is the most since 1970, the Kentucky Distillers Association said. They also said that inventory has topped 5 million barrels for the first time since 1977, according to AP.
"People keep asking us, 'When will the bubble burst?'" Kentucky Distillers Association president Eric Gregory said.
And with production surging more than 150 percent in the past 15 years in Kentucky, the answer is not any time soon, AP states.
But why is it in such a demand now?
"For many, many years, bourbon was considered a Southern gentleman's drink. Now bourbon's become a worldwide drink," said longtime Wild Turkey master distiller Jimmy Russell.
And according to AP, the U.S. now has a taste for bourbon.
But suppliers don't want history to repeat itself.
The industry increased its production in the 70s, but bourbon's demand decreased as consumers switched to Scotch, vodka and other spirits, according to AP.
"You had the same old brands, you were pretty much on autopilot," Morris said.
In order to prevent history from repeating itself, distillers are keen to change up recipes and flavors, offering premium small-batch offerings and looking at data, AP reported.
"Bourbon as a category is on fire," said Bill Thomas, a Washington, D.C. bar owner. "Every week there's stuff that's out of stock," Thomas told AP.
But some haven't been able to keep up with the demand.
Maker's Mark caused outrage in 2013 after announcing it was cutting the alcohol amount in each bottle to stretch its whiskey supply, AP reported.
Jim Beam, Evan Williams, Wild Turkey, Maker's Mark, Buffalo Trace and Woodford Reserve have even expanded due to the heavy demands.
"If they had more, they could sell it right now," said Fred Noe, Jim Beam's master distiller and a decedent
For the first time ever, bourbon and Tennessee whiskey passed the $1 billion mark in 2013, according to the council.
"It's never been like this in my lifetime," said Bill Samuels Jr., whose parents started Marker's Mark and the company's retired top executive. "It doesn't feel like a fad. It feels like a legitimate trend."
