Governor Andy Beshear Highlights the Growth of Bourbon with ‘Bourbon Heritage Month’ Proclamation

Posted on by Scott Dilley

Governor Andy Beshear Has Proclaimed September as “Bourbon Heritage Month”

We have a pair of press releases championing Kentucky’s $9 Billion industry as the Governor Andy Beshear has officially proclaimed September to be Bourbon Heritage Month. Excerpted highlights from the press releases from the Kentucky Governor’s office and Kentucky Distillers’ Association can be found below the official Proclamation.

Today, Governor Andy Beshear highlighted Kentucky’s signature bourbon industry as the commonwealth celebrates National Bourbon Heritage Month in September.

As a $9 billion industry, bourbon helps fuel Kentucky’s economy. Generating more than 22,500 jobs with an annual payroll topping $1.23 billion, the production and consumption of Kentucky bourbon provides over $268 million in annual tax revenue for state and local governments. In 2022, Kentucky recorded its best year for growth in the bourbon and spirits industry and the Kentucky Bourbon Trail saw record-breaking attendance.  

Kentucky continues to set itself apart with our signature bourbon and spirits industry. The momentum we’ve experienced over the last two years has been incredible, and the demand around the world for Kentucky bourbon keeps growing. With milestones like Heaven Hill filling its 10 millionth barrel and announcements from globally recognized brands and growth-minded startups, our bourbon industry is continuing to grow and thrive. I want to thank everyone, from the companies themselves to the communities they’re calling home, who have made this growth possible. Let’s build on the celebration that is National Bourbon Heritage Month and continue to build our signature industry.

Governor Andy Beshear

Kentucky is the birthplace of bourbon, crafting 95% of the world’s supply and housing nearly 12 million barrels, which represents two-and-a-half barrels of bourbon for every person living in the commonwealth, the most ever in the modern era of American whiskey. Currently, the state has distilleries in one-third of Kentucky counties, with that footprint expected to increase in the years ahead.

The Kentucky Distillers’ Association reported the Kentucky Bourbon Trail (KBT) and Kentucky Bourbon Trail Craft Tour experiences are busier than ever, with total attendance exceeding 2.1 million in 2022 – a new record. There are now 42 Kentucky Bourbon Trail distillery destinations across the state and over 70% of KBT visitors travel from out of state.

Using over 13.5 million bushels of locally grown corn per year, the commonwealth’s bourbon industry also depends on Kentucky farmers to plant the seeds for our continued success, as 75% of corn used by KDA distillers in 2020 came from Kentucky farmers.

From legendary industry icons to newer entrepreneurial establishments, Kentucky bourbon distillers are driving jobs, economic development, tourism and local agriculture to new levels in every part of the commonwealth. This Bourbon Heritage Month, we raise a glass to the thousands of bourbon employees who keep our signature industry going, the communities and leaders that partner with us to make their hometowns stronger, and the only place in the world that is the true authentic home of bourbon: Kentucky.

Eric Gregory, president of Kentucky Distillers’ Association

Last year alone saw over $2.1 billion in new investments and approximately 700 new jobs created for Kentucky residents, solidifying 2022 as the best year for growth in state history for our bourbon and spirits industry. Last year also saw the sector’s largest investment in state history, welcoming Sazerac’s expansion in Laurel County with a $600 million commitment creating 50 full-time jobs.

Since the start of Governor Andy Beshear administration, more than 90 spirits-related announcements have generated roughly $3.5 billion in new investment, creating over 1,600 full-time jobs for Kentuckians. Governor Andy Beshear also worked with U.S. Commerce Secretary Gina Raimondo to remove harmful bourbon tariffs on trade with the United Kingdom and European Union, ensuring continuing strength in the export market, with $430.9 million in all spirits and $339.3 million in whiskey exports in 2021 alone. And Kentucky isn’t slowing down in 2023.

New Investments in 2023 Top $545 million

  • In June 2022, Heaven Hill broke ground on a $135 million distillery project that will return the company’s distilling operations to Nelson County for the first time since the 1996 fire that resulted in a total loss of the previous distillery, creating 38 full-time jobs for Bardstown residents. And just last month, Gov. Beshear joined local officials and leaders at Heaven Hill to celebrate the filling of the company’s 10 millionth barrel.
  • Campari Group is another top investor in the Kentucky bourbon industry this year, with an investment of $161 million at the distillery’s Wild Turkey campus in Lawrenceburg, creating more than 30 new full-time positions.
  • Just last week, Bespoken Spirits relocated its headquarters and manufacturing operations to Greyline Station in Lexington. The $3.2 million relocation will create 16 new high-wage jobs paying an average hourly wage of $70.77 including benefits.
  • In July of this year, Pennyroyal Barrel Co.announced an investment of $8.52 million, creating 10 full-time jobs to establish the first bourbon-related project in Adair County.
  • Henderson Distilling Co. is also among the bourbon industry’s investors this year and is locating in Henderson County with a commitment of $5 million toward a startup distillery project that will create 12 new full-time jobs for Kentuckians.
  • But Kentucky’s bourbon and spirits industry extends beyond distilling and warehousing. The state sees significant and diverse investment in the ecosystem around bourbon production in the commonwealth, which includes cooperages, bottle makers, packaging and distribution, as well as agriculture and tourism.
  • Bluegrass Bottling, a Kentucky-based, woman-owned business, in August 2022 announced a $6.25 million investment, creating 27 full-time jobs in the Lancaster area. The company is constructing a new bottling facility and will operate under the name Poor Ridge Distillery. Bluegrass Bottling’s services include blending, proofing, brand development, labeling, private labeling, specialized packaging and designing of spirits brands.
  • Another company building on the ecosystem surrounding bourbon production is Pegasus Industries in Shelbyville. In March 2022, the company announced the expansion of its headquarters, investing $738,000 and creating 26 new full-time jobs. The project is including new technology, machinery, shipping docks, equipment and systems to help process more orders and assist with specialized packaging and promotional items.
  • Kentucky Cooperage, a subsidiary of Independent Stave Co., announced an expansion in February 2022 with a $4.1 million investment at its used barrel operation in Marion County. The project will create up to 20 full-time positions and contribute to the wide range of barrel and oak products available to distilleries in Kentucky.

Kentucky Bourbon “By The Numbers”

  • With 100 licensed distilleries across 40 of the Commonwealth’s 120 counties, Kentucky’s distilling industry continues to add jobs, locations and economic and tourism impact for local communities. 
  • The industry is in the middle of a $5.2 billion, 10-year building boom. Those projects include investments in production capacity, warehousing and bottling, as well as tourism-related amenities such as dining, entertainment and lodging facilities. 
  • Since the turn of the century, Bourbon production has skyrocketed more than 475%. Kentucky now boasts more than 11.4 million barrels of Bourbon aging in warehouses across the Bluegrass, the greatest amount ever in its distilling history. 
  • Distillers filled more than 2.6 million barrels in 2021 alone, up from 2.4 million the prior year and the fourth consecutive year that production topped 2 million.
  • Bourbon tourism continues to break records, as well. 
  • Kentucky Bourbon Trail® tourists made a record 2.1 million distillery visits last year, the first time the KBT® experiences eclipsed two million in total attendance in its history. In the last 10 years, the amber adventure has skyrocketed by a phenomenal 370% in attendance.
  • KDA President Eric Gregory said KBT® experiences are an integral part of local and state tourism efforts. Research shows Bourbon tourists trend younger, spend between $400 and $1,200 on their trip, travel in large groups and stay longer than the average visitor to Kentucky. 
  • More than 70% of visitors are from outside Kentucky and nearly half have household incomes over $100,000, all of whom bring new revenue and additional economic momentum to Kentucky counties and cities. 
  • The Kentucky Bourbon Trail Craft Tour® welcomed four new members this year, for a total of 46 distilleries across the two trails. These additions create new and engaging tourism opportunities and experiences for the state’s spirits-producing communities.

Happy Bourbon Heritage Month!

Image Credit: Governor Andy Beshear Facebook Page.

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