Kentucky bourbon, moonshine distillery sold to out-of-state beer maker
A Kentucky distillery has sold to an out-of-state group that’s been snapping up breweries.
Casey Jones Distillery in Hopkinsville has been purchased by newly created B3 Beverage Company of Jersey Shore, Pennsylvania, according to a news release.
B3 also owns Bald Bird Brewing Co. & Four Birds Distilling in Pennsylvania, Heavy Seas Beer in Maryland, Yards Brewing Company in Philadelphia and Two Roads Brewing Company in Connecticut.
B3 Beverage Company did not immediately respond to requests for comment.
Casey Jones Distillery was founded in 2014 by Arlon Casey “AJ” Jones and his wife, Peg Hays. In 2022, they added a partner, Cody Turner. The distillery makes small-batch craft spirits including bourbon and moonshine, building on the family history of bootlegging and still making.
Now, AJ and Peg are retiring. In an interview, AJ said they closed on the sale on Jan. 30.
“We take it as a positive move for our company and our employees,” Jones said. “The distillery is one of the biggest tourism draws in the county. We’re glad to find a buyer and keep it going.”
He said that after a $2 million expansion completed in 2022, Casey Jones Distillery is set for growth, with a new still, stillhouse and rickhouse as well as growing tourism from nearby interstate highways and Land Between the Lakes.
“The distillery sits in a really good place, have a lot of tourism, and we have a really good product,” he said. “We may not have gotten what we would have if not a downturn, but still got a fair price.”
In a post on Facebook, AJ wrote about his last days at the distillery over the last few snowy days.
“As I went about a few small tasks, it hit me that this is exactly how we started Casey Jones Distillery all those years ago — just the two of us, working side by side. And in a way, that’s how this chapter ends too. Just Peg and me, doing what we’ve always done,” Jones wrote. “It became very real when a few customers came in. I found myself doing a tasting or two and waiting on folks, just like the early days.
“When the last group arrived, I told them something they didn’t know when they walked in-that they were visiting at a very special time. I let them know they were getting a special treat because I was personally doing their tastings, and that they would be my last customers as the owner of the distillery.”
He posted a photo of his last group and said he and Peg are grateful to the new owners “for their promise to keep Casey Jones Distillery what it has always been and taking it up to the next step.”
In the news release, Hays said that “partnering with B3 gives us the support to grow and reach more people, while still staying true to who we are and how we do things.”
Jones said the new owners are considering adding a larger venue for weddings and expanding distribution.
“B3 is not letting the slowing of the industry stop their growth … they’re still growing,” he said.
The change of ownership comes as Kentucky’s bourbon distilling industry, as well as the craft beer industry, experiences economic turmoil.
New craft distilleries such as Garrard County Distilling and Luca Mariano Distilling have gone into receivership or bankruptcy, while even large bourbon makers including Brown-Forman and Jim Beam have laid off workers or announced pullbacks as overall production has dropped and sales have slowed.
Luca Mariano is soliciting bids to purchase the Danville distillery out of bankruptcy. Meanwhile, distressed brand Uncle Nearest apparently has struggled to find an acceptable offer for purchase, according to the receiver running the company.
But not everyone is slowing down. Sazerac and Lofted Spirits have announced expansions, and small brands including Never Say Die are adding amenities such as visitors’ experiences.
B3 Beverage CEO Joey Feerrar said in the announcement that purchasing Casey Jones creates the opportunity to expand production, strengthen distribution and plan for long-term growth while keeping the founders closely connected to the distillery.
“Casey Jones has that rare mix of real history and really great liquid,” Feerrar said. “You feel it the moment you meet Peg and AJ. They care deeply about their history, their culture, and their team members. What they’ve built is special, and we’re proud to partner with them.”
Turner, who remains a partner in Casey Jones, said in the release: “I am extremely excited to see the investment by B3 which will strengthen the distillery’s impact on the community and secure Casey Jones’ legacy in the industry.”
