Templeton Rye and the Supply Question. There is plenty of capacity to increase production.

Templeton Rye Whiskey

Templeton Rye Whiskey

I recently read some twitter comments that suggested that Templeton Rye would forever remain a scarce commodity due to production limitations. I decided to do some digging to see if there really was a production limitation. Now, before everyone gets all excited, keep in mind that it takes four years to age Templeton Rye in the barrel. Distillery capacity does not translate into Templeton Rye appearing on the store shelf tomorrow.

Based on publicly available information (which is all that I have access to), the distillery that makes Templeton Rye has 1.3 million proof gallons of whiskey production capacity. After converting proof gallons (100 proof) to 80 proof of 1 liter bottles, that is 6.151 million bottles of additional (currently unused) annual production capacity. According to Templeton Rye, they will allocate 131,400 liters of 80 proof rye during calendar year 2011. I arrived at this figure by converting the 29,200 cases to .750 liters bottles, then and then full liters of 80 proof. Last December’s large 5,000 case allocation may have depressed the numbers for 2011, but we don’t have any announcement yet for a similar allocation this holiday season.

This means that he distillery currently has capacity to add more than 8 million .750 liter bottles of 80 proof rye to the warehouses each year for aging. I suspect that it has even more capacity than advertised depending on the price.

So, this means that Templeton Rye could increase availability quite dramtically. For every bottle that hits the shelf in 2011, the distillery has the capacity to add about 46 more bottles in 2015.

What I do not know is how much Templeton Rye the company has aging in barrels for release in 2012, 2013, and 2014. Given the massive advertising campaign which far outstrips any reasonable need for more publicity given the current lack of product to sell, I’d suspect that production will ramp up sharply next year and every year thereafter.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s