01 June 2014 21:43

Diageo to Invest an Estimated $115 Million to Build Kentucky Distillery

Diageo has announced its intention to invest an estimated $115 million over three years to build a 1.8 million proof gallon (750,000 9-litre cases) distillery and six barrel storage warehouses in Shelby County, Kentucky. While finalisation of these plans is still subject to approval by local government, the project will represent a significant investment in Kentucky's growing bourbon industry. The proposed facility will distill a number of current and future Diageo bourbon and North American whiskey brands.

Diageo will purchase approximately 300 acres of property located on Benson Pike in Shelby County. The company expects that the construction project will provide a significant number of jobs and anticipates employing approximately 30 people for whiskey distillation and maturation.

"This proposed investment in Shelby County, in the heart of Kentucky bourbon country, will cement our commitment to expanding our share of the American whiskey category," said Larry Schwartz, President, Diageo North America. "Diageo has a long tradition within the craft of whiskey-making and we look forward to bringing this artisanship to the new distillery. The distillery will build on our presence in Kentucky and we are committed to being a productive member of the local community. We are very thankful for the support we have received thus far from state and local officials and look forward to a long and fruitful working relationship."

"Today marks another feather in the cap for Kentucky's bourbon industry," said Governor Steve Beshear. "Distilled spirits remain a marquee industry in the Commonwealth, and Diageo's new distillery will ensure that even more Kentucky bourbon is enjoyed around the globe. I want to thank Diageo for investing in Shelby County, and I look forward to seeing the distillery in action."

"The Shelby County Fiscal Court is very excited that Diageo is proposing to expand its worldwide distillation operations by building a state-of-the-art distillery in Shelby County. We look forward to a great partnership with Diageo and we welcome them to the community," said Shelby County Judge-Executive Rob Rothenburger.

"We couldn't be more thrilled for the company and the Shelby County community, as this major distilling center will bring jobs and increased investment to the region," said Eric Gregory, President of the Kentucky Distillers' Association, of which Diageo is a long-time member. "We applaud Diageo for its continued commitment to Kentucky and our signature Bourbon industry, and look forward to toasting this incredible landmark at its opening."

Over the last year, Diageo's momentum in North American Whiskey has accelerated with both flagship and new-to-world brands. Fuelled by flavour innovations and consumer demand for premium brands with authenticity, bourbon is currently the fastest growing spirits category in the U.S., enjoying 14% value growth for the latest 52 weeks. This popularity is mirrored globally, with the super-premium price segment growing 24% over the last three years.

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