KY barrel maker announces job cuts in another hit to bourbon industry
AI-generated summary reviewed by our newsroom.
- Kentucky Cooperage will lay off 110 workers from its Lebanon barrel plant.
- Job cuts affect production, maintenance and logistics roles starting October 19.
- Layoffs mark second major Kentucky barrel plant reduction in bourbon sector in 2025.
In a further sign of the bourbon industry’s slow down, Kentucky Cooperage is laying off 110 workers from its Lebanon plant.
Owned by Independent Stave, which makes barrels for distilleries, Kentucky Cooperage notified the Kentucky Department of Workforce Investment of that the job cuts will begin Oct. 19.
“KYC has concluded that it, unfortunately, must significantly reduce its empoyment at its Lebanon manufacturing facility located at 712 E. Main St., Lebanon KY 40033,” the company human resources director Ronda Bilyeu wrote the state. “The entire plant will not be closed, but we expect that the job losses listed with this letter will be permanent.”
Teri Smith, marketing director of Independent Stave, said in a statement to the Herald-Leader: “We have made a strategic decision to consolidate operations to a single shift at Kentucky Cooperage. This step is part of a well-thought-out plan to ensure long-term strength and stability while staying aligned with current market demand. We regularly evaluate our network of cooperages and mills to maximize efficiency and operate sustainably. These efforts allow us to maintain reliable supply, protect quality, and keep pricing competitive. Quality and service remain top priorities, and we preserve the flexibility to quickly scale production as market needs evolve.”
According to Kentucky state economic data, in 2022 about 440 people worked at the cooperage, down from a high of 500 in 2019.
Employees at the plant are not represented by a union, according to the letter, which was dated Aug. 19. Employees were notified, as were Lebanon’s mayor and the chairman of the Marion County Commissioners.
Officials in Lebanon did not immediately respond to a request for comment.
According to the Independent Stave, the impacted jobs include 90 production employees, 10 maintenance workers, two fabricators, five forklift operators, three janitors, one quality control worker and one spotter truck driver.
In 2022, Kentucky Cooperage announced a $4.1 million expansion of the Marion County plant that was to create up to 20 additional full-time jobs, bringing total employment in Kentucky to more than 700 in plants in Benton, Lebanon, Louisville and Morehead.
The expansion, which doubled the size of the Lebanon plant, qualified for up to $150,000 in tax incentives.
It’s the at least the second Kentucky bourbon cooperage impacted this year. In January, Brown-Forman closed its Louisville cooperage, laying off 210. In June, Independent Stave bought the shuttered barrel making plant from Brown-Forman for nearly $14 million.
Other parts of the bourbon industry have been impacted this year as well. Wild Turkey, Bulleit and Beam owner Suntory have reported slumping sales and multiple distilleries have faced financial problems.
Garrard County Distillery is closed and in receivership; Luca Mariano is in bankruptcy. Georgetown bourbon Limestone Farms Distillery is facing a lawsuit and $2 million in liens, while Tennessee whiskey maker Nearest Green has been placed in receivership owing more than $108 million.
This story was originally published August 26, 2025 at 2:46 PM.
