Luxco to build $35 million distillery in Bardstown

Luxco, the St. Louis-based liquor company that markets Rebel Yell, Blood Oath and Ezra Brooks bourbons, announced Monday that it will build a $35 million, 18,000-square-foot distillery in Nelson County that is expected to be fully operational by late 2017.

The distillery, which will produce spirits for those brands, will be on a 70-acre site formerly known as the Ballard property off Ky. 245 just outside of Bardstown. Buzick Construction will begin working this summer on the distillery and six barrel warehouses. When finished, the distillery and tasting room will employ about 34 people.

Donn Lux, chairman of the privately held Luxco, said the distillery would have the capacity to meet the company’s needs and then some.

“That’s the beauty of building in a greenfield,” Lux said. “We can expand the facility as our business grows. ... Just a matter of building more warehouses.”

The distillery will produce bourbon and other American whiskeys, and might do third-party distilling, he said. While Luxco has no plans to release a “white” whiskey, he said anything was possible.

The distillery, designed by Louisville’s Joseph & Joseph Architects, will be next to a house that is on the National Register of Historic Places. The house and barns on the property might be incorporated into future projects such as event spaces, Lux said. The new distillery also will have a visitors center inside.

Luxco hopes to join the Kentucky Distillers’ Association’s Kentucky Bourbon Trail, it said in a news release.

“We are looking forward to building the distillery on this scenic property and in such a central location in Bardstown,” said David Bratcher, president and COO of Luxco. “We intend the distillery to be a welcoming stop for those visiting the Kentucky Bourbon Trail.”

The distillery, which will be Luxco’s first, Bratcher said, will produce whiskey to meet the increased demand for its popular brands, which have been distilled under contract.

“Building this distillery will allow us to control our own production as well as offer us the ability to experiment with new and innovative mash bills, barrel types and aging techniques,” Bratcher said.

One of its most popular releases has been Blood Oath, blended from mature whiskey stocks stored in Kentucky; Pact No. 1, first released a year and a half ago, sold out at more than $100 a bottle. A second release, Blood Oath, Pact No. 2, is coming out soon, Lux said.

The Kentucky Economic Development Finance Authority has approved $1.3 million in tax incentives for the project. and Nelson County plans to issue $35 million in bonds to finance the project. According to the state, Luxco plans to spend $2.2 million on the land, $26.2 million on the distillery and $6.7 million on equipment.

Luxco also has a 50 percent interest in Limestone Branch Distillery in Lebanon, which produces Yellowstone Kentucky Straight Bourbon.

A producer, marketer and importer, Luxco’s portfolio of brands includes Juárez tequila and triple sec, Pearl vodka, Everclear grain alcohol, Arrow cordials, El Mayor tequila, Lord Calvert Canadian whisky, St. Brendan’s Irish cream and more.

This story was originally published April 4, 2016 at 3:33 PM with the headline "Luxco to build $35 million distillery in Bardstown."