The buildings of bourbon distilleries are often covered with black stain. At first glance, the stain appears to be a charring of the buildings’ surfaces, but in reality, the blackening is growth of the Baudoinia compniacensis fungus, which germinates on ethanol that evaporates into the air during the bourbon aging process. Although scientists only identified Baudoinia in 2007, distillers have observed the blackening of their facilities for centuries. Not surprisingly, Baudoinia also affects the area around distilleries causing similar blackening of cars, sides of houses, and other surfaces.
In 2012, after being fed up of this blackening and allegedly never knowing about the existence of Baudoinia, home and business owners near bourbon distilleries in Kentucky filed class action suits in state and federal courts against the producers of Jim Beam, Woodford Reserve, Bulleit, Elijah Craig, and Buffalo Trace. The plaintiffs allege a number of tortious claims related to purported damage to their real and personal property. They say that the accumulation of Baudoinia causes early weathering of surfaces and requires costly and constant cleaning.
Specifically, the plaintiffs accuse the producers of negligence in causing the accumulation of Baudoinia by not suppressing the ethanol that escapes from their production operations. They also claim that the fungal accumulation is a nuisance and a trespass on their property. For their losses, they demand money damages and injunctive relief in the form of the producers installing ethanol-capturing technology at their facilities.
The defendant producers emphatically deny the plaintiffs’ accusations and claim that Baudoinia is a naturally occurring fungus found in a variety of environments and not just areas near distilleries. The cases are still pending, but they raise several business questions.
- Are these valid claims?
- Should bourbon producers just ignore these suits or take proactive steps to install technology that would limit the release of ethanol?
- Does this technology even prevent the accumulation of Baudoinia?
- Would this technology alter the bourbon’s flavor?
Although many discount these suits as frivolous, the plaintiffs’ claims have survived motions to dismiss, so bourbon producers must carefully examine these questions for the benefit of their business and profitability.
