566 - Stories From The Retail Front Line with Bill Derham of Frankfort Ave Liquors
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In this episode of Bourbon Pursuit, host Kenny Coleman sits down with Bill Durham, owner of Frankfort Avenue Liquors in Louisville, Kentucky, to explore the evolving challenges and triumphs of the retail side of the bourbon industry. Bill shares his journey from working at Liquor World to founding Frankfort Avenue Liquors, a unique blend of a liquor store, bar, and community hub. He reflects on the golden era of bourbon retail—when fans camped out for releases like Pappy Van Winkle and Blanton’s—versus today’s market, where inflation, shifting consumer preferences, and the rise of THC seltzers have disrupted traditional sales. Bill discusses how his business adapted by prioritizing community, affordability, and experience, turning the store into a destination with vintage pours, cocktails, and live music. He also voices concerns about the three-tier system, unfair tax burdens on retailers, and distilleries favoring national markets over local Kentucky retailers. Despite these challenges, Bill remains optimistic, emphasizing the importance of local partnerships and the potential for Kentucky to lead in direct-to-consumer shipping if regulations change. Key takeaways include: 1) Retailers are essential to bourbon culture but are often overlooked in favor of distillers; 2) The shift toward THC seltzers and other low-hangover drinks is significantly impacting bourbon sales, especially among younger consumers; 3) Building community and offering value at SRP (suggested retail price) is a sustainable strategy in a competitive market; 4) Kentucky retailers need stronger legal support to ship bourbon directly to consumers; 5) The future of bourbon retail lies in experience, education, and accessibility—not just scarcity. Bill’s story underscores the resilience and innovation required to thrive in today’s bourbon economy.
Retailers are the unsung heroes of bourbon culture, providing access, education, and community.
The rise of THC seltzers is a major threat to bourbon sales, especially among younger drinkers.
Offering value at SRP and creating a welcoming bar experience can build lasting customer loyalty.
Kentucky retailers are being left behind by distilleries that prioritize national markets over local ones.
Direct-to-consumer shipping laws could revolutionize the retail landscape if properly implemented.
The Rise of the Bourbon Retailer
Kenny Coleman introduces the episode, setting the stage for a deep dive into the retail side of the bourbon industry. He highlights the importance of understanding what happens behind the counter at local liquor stores and introduces Bill Durham, owner of Frankfort Avenue Liquors, as a key figure in Louisville’s bourbon retail scene.
From Liquor World to Frankfort Avenue
Bill Durham recounts his journey from working at Liquor World to founding Frankfort Avenue Liquors. He shares how the business evolved from a wine-focused store to a bourbon and cocktail destination, emphasizing the importance of community, experience, and adaptability in a changing market.
The Golden Age of Bourbon Campouts
“I sold three Pappy 23 decanters in three weeks. Within six months, someone wanted to buy them back for $1,000 and $1,500. I took them. That was the beginning of the end of the old world.”
The Shift from Wine to Bourbon
Bill explains how bourbon began to dominate his store’s inventory, starting around 2007-2008. He details the growing demand for Van Winkle, Weller, and Blanton’s, and how the store became a go-to for rare bottles, even before the market exploded.
The New Retail Reality: Value and Experience
“We knew we couldn’t just do regular retail anymore. The climate is too tough. We had to feed off each other—retail and bar.”
“If every liquor store in Louisville had product on the shelf at a great price, this city would be a bourbon paradise.”
“If you could ship bourbon from Kentucky to every state, you’d be the number one state in the country for shipping. It’s that simple.”
“I sold three Pappy 23 decanters in three weeks. Within six months, someone wanted to buy them back for $1,000 and $1,500. I took them. That was the beginning of the end of the old world.”
Hosts
Guest
Bill Durham
person
Kenny Coleman
person
Frankfort Avenue Liquors
organization
Fred Minnick
person
Pappy Van Winkle
product
Blanton's
product
Weller
product
Liquor World
organization
Buffalo Trace
organization
Sazerac
organization
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