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Brown-Forman To Expand Its Distillery In Louisville

Published on Feb 24 2021 10:59 AM in Drinks tagged: Jack Daniel's / Brown-Forman Corp / American Whiskey / Old Forester

Brown-Forman To Expand Its Distillery In Louisville

Brown-Forman Corporation has announced plans to expand the Brown-Forman Distillery in Louisville to meet the increased demand for American whiskey.

Part of the expansion project will see Old Forester create an oak tree nursery on its property for a long-term study of oak tree sustainability to ensure the future viability of one of the most critical ingredients in bourbon making.

Expansion

The distillery expansion will double the capacity of the facility while remaining on the same parcels of land. Construction is expected to take more than two years to complete, the Jack Daniel's parent added.

The site, located off of Dixie Highway in Shively, will be fully operational throughout this period.

Brown-Forman's premium bourbons have enjoyed exceptional growth over the last decade, with reported net sales growing by 18% in the first half of the company's current fiscal year.

Investment

The estimated $95 million investment includes doubling the number of fermenters, adding column still capacity and mash cookers, and improving the grain handling and by-products system, among others.

The Kentucky Cabinet for Economic Development approved Brown-Forman for tax incentives up to $5 million under the Kentucky Reinvestment Act to encourage investment in this growing industry. 

The act allows a company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting certain targets.

An additional $500,000 was approved under the Kentucky Enterprise Initiative Act, which allows companies to recoup Kentucky sales and use tax on certain construction costs, building fixtures, equipment used in research and development, and electronic processing equipment.

Alex Alvarez, chief production and sustainability officer at Brown-Forman, said, "This expansion will allow us to increase production, improve efficiency, and enhance the workspace so we can continue bringing whiskey, made right here in Louisville, Kentucky, to the world."

© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Conor Farrelly. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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