DIANE SAWYER (ABC NEWS)(OC): Everyone agrees one way to help revitalize the American job force is to sell more American products in foreign countries. But what do we have to sell our homegrown goods to those overseas. Billions of people with money to spend?
DIANE SAWYER (ABC NEWS)(VO): ABC's Jon Karl talked to a pioneer in Kentucky.
JONATHAN KARL (ABC NEWS)(VO): It's a manufacturing boom in the heartland, production expanding, sales breaking records. And lots of new jobs. We're talking about bourbon. A 100% American-made product almost as old as America itself, and not since the end of prohibition has there been this much demand for it.
SPOKESPERSON (JIM BEAM): It's a remarkable turnaround for an industry, particularly in this kind of an economic climate.
JONATHAN KARL (ABC NEWS)(VO) We set out to find Kentucky's secret.
JONATHAN KARL (ABC NEWS)(VO): What can struggling American businesses learn from the bourbon boom?
JONATHAN KARL (ABC NEWS)(VO): Production shot up 18% just last year and continues to soar. There are now more barrels of bourbon in Kentucky than there are people.
JONATHAN KARL (ABC NEWS)(OC): Who's this guy?
FRED NOE (JIM BEAM): That's my picture.
JONATHAN KARL (ABC NEWS)(VO): We asked the great grandson of Jim Beam - who's buying it all?
FRED NOE (JIM BEAM): Probably half our business is overseas.
JONATHAN KARL (ABC NEWS)(OC): And it means jobs
FRED NOE: Oh, it's jobs for all these people. We're selling American products around the world, which is great.
JONATHAN KARL (ABC NEWS)(VO): And toast after toast after toast, we found how bourbon created worldwide demand.
JONATHAN KARL (ABC NEWS)(VO): Noticing a slowing American market, they aggressively sought sales overseas.
JONATHAN KARL (ABC NEWS)(VO): By improving quality and leveraging what makes them different - by definition, bourbon can only be made in America. Their big idea? Selling bourbon by selling America itself, right down to plastering America right on the bottles, horses, cowboys, the Kentucky Derby.
JONATHAN KARL (ABC NEWS)(VO): The result, bourbon exports are booming, now to 126 countries and bourbon isn't the only American business tapping into the world's thirst for Americana.
JONATHAN KARL (ABC NEWS)(VO): Maine is marketing lobsters overseas, sales doubling three years in a row. So popular in China, they can't get enough of them.
JONATHAN KARL (ABC NEWS)(VO): And Texas Pete Hot Sauce entering eight new countries this year alone. And California wine is now in demand in Europe.
JONATHAN KARL (ABC NEWS)(OC): There you go. That's how you open a barrel.
JONATHAN KARL (ABC NEWS)(VO): Back in bourbon country Maker's Mark is banking on a long boom, each bottle dipped in wax by hand. A tradition they say no boom will bust.
JONATHAN KARL (ABC NEWS)(OC): Ready?
EMPLOYEE (MAKER'S MARK) I'm ready whenever you are.
JONATHAN KARL (ABC NEWS)(OC): All right. Here we go.
EMPLOYEE (MAKER'S MARK): Not too deep.
JONATHAN KARL (ABC NEWS)(OC): Was that too deep?
EMPLOYEE (MAKER'S MARK): No, that's good.
JONATHAN KARL (ABC NEWS)(VO): If you find a bottle a little messed up, now you'll know why.