If you’re at all into hunting rare bourbon, you’ve at least come across the idea of the bourbon secondary market. Mostly online these days, hidden in oddly named Facebook groups, exists the Bourbon Secondary Market (BSM). This is where the true “value” of whiskey is set.
Let’s talk about it.
What is the Bourbon Secondary Market?
The Bourbon Secondary Market is the aftermarket of the whiskey business. It sort of exists in two realms: the private retail store and “underground” online markets.
As with any rare commodity that consumers like to collect (whether for consumption or show), a limited quantity of something will drive up the price. In many U.S. states, liquor is price controlled by some kind of board or commission (like the North Carolina ABC). This “protects” the liquor industry in such states from the normal forces of capitalism that is supply and demand.
In North Carolina, for example, bottles in the Buffalo Trace Antique Collection are priced at $149.95 in 2024. While this is up from $99 a few years ago, it’s still in line with the distillery’s recommend pricing. If you happen to come across one of these bottles in an N.C. store, that’s the price you’ll pay (plus tax).
Private Retail Secondary Market
One way the Bourbon Secondary Market exists is in states that don’t price control. This means package stores are independently/privately owned and have the luxury of setting their own prices.
Rare bottles like those in the aforementioned BTAC, or Pappy, or other rare bourbons can be much more expensive. Typical market forces will drive prices up (or down) depending on the allocation and popularity of the bottle. In some cases, this can be to the tune of hundreds of dollars. The $150 George T. Stagg could sit on a shelf in Tennessee with a $900 price tag (a 6x increase!).
This also applies to private online retailers. Consider all these Pappy Van Winkle bottles available at Nestor Liquor. The prices are steep. That’s the Bourbon Secondary Market at work.
BSM on Facebook and Social Media
There also exists a more “underground” version of the Bourbon Secondary Market. Primarily, but not exclusively, on Facebook, there are groups dedicated to selling and shipping rare and exclusive whiskey amongst members.
An entire industry exists here now where individuals hunt for rare whiskey and flip them to other members that are willing to pay a premium. This includes both direct sales and auctions. Hundreds, if not thousands of sales occur in these groups every day, and prices fluctuate like they might in any other market.
Arguably, this is a completely different market than the retail space and, in most instances, the reselling of whiskey in this way is strictly illegal. Many of these Facebook groups have strict rules around posting and reporting in order to keep themselves hidden from Facebook moderators. Groups that are discovered are often “Zucked”, and shut down… but they always have backups and pop right back up.
Facebook isn’t the only place for this, though. Telegram, Discord, and other online communities operate in this legal grey area as well.
It’s worth reiterating: this is usually not a legal way to buy and sell booze. It’s both expensive and risky, as many buyers and sellers are just random people on the internet. Additionally, ABC commissions love their taxes, and the U.S. Tax and Trade Bureau takes this very seriously.
Is the Whiskey Secondary Market Worth It?
This is clearly a question of opinion. For some people, the secondary market is clearly worth it — the demand is obvious in the prices that are being set. Individually, it will depend on your own tolerance for risk and how you value each bottle you’re interested in.
Of course, not all of the secondary market is predatory or extra expensive. Sometimes it’s just a convenient way to get bottles that aren’t necessarily “rare”, but just a little more allocated. Online retailers might sell you a half-case of Weller Special Reserve 1 Liters for ~$60 a piece. That’s maybe more than MSRP, but also not something you can often find elsewhere.
All to say, it’s a case-by-case basis. Private markets tend to increase prices, but also make things more available.
