Why The Government Raided 2 Kentucky Stores Known For Rare Bourbon

There's more than just alcohol in bourbon, there's also a lot of money spent and made on collectible bottles. Why is bourbon so collectible and expensive? Sure, aging bourbon requires the investment of time, but when you look at the suggested retail price of Pappy Van Winkle bourbons, it's often surprisingly modest — Old Rip Van Winkle 10 year retails for $69.99 — but Alcohol Professor points out it's the secondary market that drives up prices for limited edition bottles. In the case of that $70 Old Rip Van Winkle, the price goes up to roughly $1100 from online retailers like Wooden Cork. Simply put, bourbon has become an investment, one with an annual return of a healthy 9%. 

Since the rule of thumb for spirits collectors is that older is better, and therefore more valuable, part of that secondary market involves buying old bottles from estates or collectors, though L.A. Whisk(e)y Society notes the practice in the U.S. is fraught with legal peril, as it's completely prohibited in some states and heavily regulated in others. In 2018, Kentucky's HB100 or Vintage Spirits Law began permitting licensed retailers to purchase spirits from unlicensed individuals (that are over 21 and meet other specific criteria). On January 18, 2023, two of those stores were raided by the state's Alcoholic Beverage Control (ABC).