Commonwealth’s Bourbon Economy is Thriving According to 2023 Report
Spurred by a decade of legislative changes to Kentucky’s archaic alcohol laws, the Commonwealth’s signature Bourbon industry now provides more jobs, generates more payroll, pays more taxes, attracts more tourists and features more distilleries than ever before, according to the newly published Bourbon Economic Impact Report.
The record-breaking statistics were released today by Gov. Andy Beshear, Senate President Robert Stivers, House Speaker David Osborne, Agriculture Commissioner Jonathan Shell and leaders of the Kentucky Distillers’ Association trade group.
Kentucky’s economy is booming, and the Bourbon industry is helping us build a strong economy for generations to come. Today, this signature industry is generating $9 billion in total economic impact, with more on the way. We thank our distilleries for working hard to create more good jobs and boosting our tourism industry across the Commonwealth.
Governor Andy Beshear
The report used data from 100 distilleries in 42 counties and found that the industry continues to grow local communities with jobs, tax revenue, agriculture, tourism and out-of-state spending.
Kentucky’s Bourbon economy is stronger than ever thanks to the dedication of our elected officials to update archaic alcohol laws that were forcing distillers to look elsewhere and the men and women who work in the industry every day. With modern alcohol laws now in place, the signature industry continues to help build a stronger Kentucky.
Eric Gregory, President of KDA
Highlights from the Report
- Kentucky Bourbon is a $9 billion economic and tourism powerhouse for the Commonwealth, now generating more jobs, more payroll, more tax revenue, more tourists and more distilleries in more Kentucky counties than ever before.
- Distillers produced a record 2.7 million barrels of Bourbon in 2022, the fifth year in a row topping 2 million.
- Today, there is a record inventory of 12.6 million Bourbon barrels aging across the state.
- Kentucky has 100 licensed distilleries operated by 84 companies in 42 Kentucky counties.
- The distilling industry generated $358 million in state & local taxes last year, which is $232 million more in taxes (180%) than what was paid just 15 years ago. It also paid $1.9 billion in federal alcohol excise taxes last year.
- Corn production in core distilling counties has increased 300% since the first 2009 study. Distillers purchased 21 million bushels of Kentucky grown corn & grains.
- Bourbon is responsible for 2.5 million visitor experiences in 2023. Bourbon tourists trend younger, spend more, and stay longer compared to other tourism attractions.
- Distilling generates more than 23,100 jobs in Kentucky with annual salaries and wages of $1.63 billion ($2.2 billion including benefits).
- KDA members are in the middle of a $5.4 billion capital investment spree. Of the $3.5 billion of investments KDA distillers plan to make in the next five years, they project spending at least $194 million to expand their tourism operations on our famous Kentucky Bourbon Trail® adventures.
- Kentucky distillers shipped more than $500 million in exports in 2022, almost all of which was Bourbon.
While the Bourbon report includes a deep analysis of industry metrics, forecasts, and of course, accolades from enthusiasts, our KDA members, deeply rooted in the Commonwealth, are proud to share the compelling story of how “Bourbon Builds Kentucky.”
The newest report found that distillers are making significant impacts in agriculture and tourism industries since the original 2009 report was published.
When it comes to the Bourbon economy taxes, the report found that Kentuckians are receiving $358 million in state and local taxes every year from distillers.
And, even though it remains the highest taxed large manufacturing industry in KY at $.17 per dollar, no other industry in the state has higher shares of national employment (27%), labor compensation (26%) and output than distilling. Kentucky distillers shipped more than $500 million in exports in 2022, almost all of which was Bourbon.
Not only is Bourbon building Kentucky communities, but it’s also elevating Kentucky’s stature internationally as exports grow and distillers across the globe look to Kentucky for how to do it right.
About the Kentucky Distillers’ Association:
The KDA is a non-profit trade association founded in 1880 to promote, protect and elevate Kentucky’s signature Bourbon and distilled spirits industry. Visit www.kybourbon.com and www.kybourbontrail.com to learn more.
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