$600 million expansion: Bourbon maker plans largest Kentucky spirits investment ever
Buffalo Trace Distillery’s parent company announced on Wednesday a $600 million expansion, the largest distilled spirits-related investment in Kentucky’s history, according to Gov. Andy Beshear’s office.
Bourbon-maker Sazerac is planning to build about 20 bourbon barrel warehouses in Laurel County and expand Robinson Stave and Cumberland Cooperage in London, creating up to 50 full-time jobs, according to the state.
In October, the Kentucky Economic Development Finance Authority approved up to $3 million in various state tax incentives for the project, which must hit job and wage targets.
The announcement was hailed by Beshear and local officials as a major economic boon to an area that has historically higher than average unemployment.
“This is a significant investment in Kentucky by Sazerac as our signature bourbon industry continues to grow at an incredible rate,” Gov. Beshear said. “I am so glad to see this job creation in Southeastern Kentucky, as well as the growth of a company that has invested so much in the commonwealth over the past 25 years. Thank you to the leaders at Sazerac for further deepening their roots in the Bluegrass State.”
What Sazerac plans in Laurel County
Sazerac, which is a privately held family-owned spirits business based in Louisville and Metairie, La., is buying the 198-acre Rowland Acres Industrial Park from the London-Laurel County Economic Development Authority to build the new barrel storage warehouses. Work on the project is expected to begin before the end of the year, with the first of seven barrel warehouses expected to be complete in the spring of 2025.
The company purchased Robinson Stave and Cumberland Cooperage in 2014 and plans a 72,000-square-foot expansion to increase production capacity for barrels.
According to the state, Sazerac has invested $1.2 billion in Buffalo Trace Distillery in Frankfort. Sazerac also owns Barton 1792 Distillery in Bardstown, The Glenmore Distillery in Owensboro and its headquarters in Jefferson County.
Controversy over other Buffalo Trace expansion plans
Earlier this year, Buffalo Trace also received approval from Anderson County officials over the objections of neighbors to build a 20-rickhouse barrel storage campus outside Lawrenceburg. And Franklin County residents have been fighting a potential major warehouse expansion there.
A Buffalo Trace spokeswoman said the Laurel County project is in addition to those projects.
“We are delighted to expand further in Laurel County and appreciate the warm welcome given to us by the local government and the economic development authority,” Mark Brown, Sazerac president and CEO, said in a statement. “We’ve invested in London-Laurel County because we know the residents are hardworking Kentuckians who take pride in their craft. Our construction of new barrel storage warehouses and expansion of our barrel cooperage operations will allow for the continued growth of Kentucky’s signature bourbon industry.”
According to the state, since the start of the Beshear administration there have been more than 60 spirits-related announcements generating more than $1.4 billion in new investment and creating more than 1,100 full-time jobs.
Laurel County Judge-Executive David Westerfield said the Sazerac project will have long-term impact on the region.
“This multimillion-dollar expansion is monumental for Laurel County,” Westerfield said in the news release. “Sazerac’s Cumberland Cooperage in East Bernstadt offers some of the best jobs in our county and we are thrilled they are expanding their presence in our community.”
London Mayor Troy Rudder echoed that. “Sazerac’s Cumberland Cooperage offers some of the best paying jobs and benefits in the area and we are fortunate to have them continue to grow here,” Rudder said in the release.
The expansion announcement comes as legislative leaders consider a potential reduction on the taxes paid on aging spirits in the barrel. Kentucky Senate President Robert Stivers, R-Manchester, is co-chair of the Bourbon Barrel Taxation Task Force. No bill has been pre-filed yet.
This story was originally published November 23, 2022 at 11:44 AM.
