TED Case Studies
Number 711, 2003
by Suzan Herzeg, Bryan Rund and Jim Lee
Kentucky Bourbon and Protection as a Geographic Indication
General Information
Legal Cluster
Bio-Geographic Cluster
Trade Cluster
Environment Cluster
Other Clusters

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I. Identification

1. The Issue


2. Description

The pioneer farmers of Kentucky made the original Kentucky bourbon out of the corn grain that they could not sell and had to use before it went rotten. The name "bourbon" came from the name of the Kentucky County where most of the whiskey was produced. It was the purchasers down river that dubbed it so.
There are certain key ingredients and processes to Kentucky bourbon.

One is the iron-free, mineral free, limestone water from Kentucky springs that lacks the impurities that would affect the taste of the finished product. Two is the ingredients. Law mandates that the bourbon recipe consist of at least 51% corn, and the distiller has the choice of percentage of barley malt, rye or wheat. The grains are ground and mixed at certain intervals with water. The mixture is then cooked, and a strain of yeast is added once the mixture produces grain sugar, to start the fermentation.

Each distillery has its own strain of yeast, which is a carefully guarded secret. The "sour mash" is then transferred to a large cypress or steel tub for distilling. The third key ingredient is actually the container. The high wine bourbon is then poured to the brim into the new, white oak barrels that are charred on the inside. It is legally mandated that the bourbon be stored in such a container. As the temperature and seasons change, the bourbon expands and contracts through the charred wood, which gives it its characteristic and distinctive mellow flavor and color.

Warehouses are usually buildings "built on hilltops or in a staggered format in open fields," with several barrel racks that allow for airflow. Kentucky bourbon must be aged for at least two years, though most are aged between 4-8 years. If the bourbon is aged for less than four years, the producer has to put the age on the label.

Source: Kentucky Distillers' Association - www.kybourbon.com/english/pages/history.html


3. Related Cases

4. Author and Date: Suzan Herzeg, Bryan Rund and Jim Lee


II. Legal Clusters

5. Discourse and Status: Agreement and InProgress

6. Forum and Scope: US and Multilateral

7. Decision Breadth: NAFTA and EU (18)3

8. Legal Standing: Treaty


III. Geographic Clusters

9. Geographic Locations

a. Geographic Domain: North America

b. Geographic Site: Eastern North America

c. Geographic Impact: US

10. Sub-National Factors:

11. Type of Habitat: Temperate


IV. Trade Clusters

12. Type of Measure: Culture

13. Direct v. Indirect Impacts: Indirect

14. Relation of Trade Measure to Environmental Impact

a. Directly Related to Product: Yes, Spirits

b. Indirectly Related to Product: No

c. Not Related to Product: No

d. Related to Process: Yes, Culture

15. Trade Product Identification: Kentucky Bourbon

16. Economic Data

17. Impact of Trade Restriction: Ban

18. Industry Sector: Food (and Drink)

19. Exporters and Importers: US and many


V. Environment Clusters

20. Environmental Problem Type: Culture

21. Name, Type, and Diversity of Species

Name:

Type:

Diversity:

22. Resource Impact and Effect: High and Regulation

23. Urgency and Lifetime: High and 100s of years

24. Substitutes: Like Products


VI. Other Factors

25. Culture: Yes

26. Trans-Boundary Issues: No

27. Rights: Yes

28. Relevant Literature





11/2003