Barrel Shortage Hinders Wisconsin’s Whiskey Production

An oak wood barrel shortage is affecting whiskey and bourbon production in Wisconsin.

Yahara Bay Distillers produces a variety of spirits in Madison. Proprietor and chief distiller Nick Quint says he can’t get half the number of oak wood barrels he needs to age his whiskey and bourbon, so he has to ration the amount of bourbon his customers get.

“There’s a company in Germany, I got an email today, they’re begging for bourbon,” said Quint. “I really want to be able to sell to them, but I’m just going to have to put them on hold. They don’t understand that. It hurts.”

Many distillers prefer barrels made of white oak that’s been air dried for 36 months. That wood is in short supply.

A number of forces are causing the shortage. Heavy rains limited logging a few years ago in the Ozarks, where much of the desired oak is grown. Also, whiskey consumption and the number of distillers are on the rise, so more barrels are needed. Plus, there are not many companies making oak barrels.

Heidi Karash is the owner of Minnesota-based Black Swan Cooperage, which makes barrels for distillers across the country, including in Wisconsin. She says their orders are backed up for months and they can’t even get the type of wood they want.

“We would all prefer to be able to use air dried wood because it definitely brings a better flavor profile out of the white oak, but we just don’t have that luxury,” said Karash. “Most of the wood we’re buying right now is already pre-dried for us in a dry kiln.”

Karash says the cost of oak has gone up at least 35 percent for them. How the barrel shortage is affecting drink prices varies. Some distillers are raising the price of whiskey while others say they don’t want to take advantage of the situation.