InvestBev sees bourbon market correction as foundation for long-term growth 

USA – Private equity group InvestBev has expressed optimism about the future of the Bourbon industry, describing the current downturn as a “necessary correction” that will set the stage for long-term growth. 

In a statement, the firm highlighted the ongoing “repricing of barrel assets” and said the adjustment is crucial for stabilising the market. Brian Rosen, InvestBev’s general partner, compared the present slowdown to the challenges of the 1980s, when Bourbon faced oversupply, changing consumer tastes, and growing health consciousness. 

“Every asset class experiences periods of correction,” Rosen said. “What we are seeing today is not dissimilar to the Bourbon downturn of the 1980s. 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.” 

According to InvestBev, Bourbon barrel production has fallen by 12-15% in 2025 compared to 2023. The group described the decline as a strategic move by distillers to balance supply with demand.  

It also emphasised that 92% of Kentucky Bourbon is consumed within the U.S., limiting exposure to tariffs and global trade risks. 

Despite pressures facing the broader U.S. whiskey market, InvestBev maintained that Bourbon remains a “non-correlated hard asset class” supported by disciplined supply adjustments and ongoing premiumisation trends. The sector’s fundamentals, the firm said, continue to provide stability and long-term growth potential. 

The industry has faced headwinds in recent months. Earlier this year, Brown-Forman revealed plans to reduce its workforce by more than 600 employees and to close a barrel-production facility in Louisville.  

Meanwhile, Rosen predicted in May that three to four distillery bankruptcies would likely occur before the end of 2025, with one already confirmed. 

Nevertheless, InvestBev has continued deploying capital in Bourbon. In March, the company announced a partnership with a global asset manager to commit up to $100m to Kentucky Bourbon barrels.  

The firm also operates a US$100m credit program to support distilleries, brand owners, and investors with liquidity and financing solutions. 

In January, InvestBev completed an “eight-figure” barrel financing agreement with Saga Spirits Group, also known as TKC Distilling Company. The deal will fund barrel acquisitions to back the launch of Saga’s new whiskey brand, True Story. 

With US$250m in assets under management, InvestBev is the largest private equity platform dedicated to the global beverage sector, investing across barrels, brands, and adjacent services. 

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