Castle Brands Board (ROX)

[MaxInvestor]

Bourbon Shortage Both Good and Bad for ROX

Supply and demand favors Jefferson's profit margins, but don't forget that ROX needs to source the bourbon from somewhere until they get a distillery that can handle the demand. The KAD Distillery Partnership Deal was the first step.

So if demand outpaces supply and there is a shortage it will make it more difficult for Jefferson's current system to continue. You can't sell a lot of bourbon if you can't source it. You can mark it up but the quantity would be limited.