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Diageo To Invest $115 Million To Establish Distillery-Storage Warehouse In Shelby County, Kentucky

Area Development Online News Desk (05/29/2014)
Diageo, a producer of premium brands such as; Johnnie Walker and Crown Royal whiskies, Smirnoff, Ciroc and Ketel One vodkas, as well as Baileys, Captain Morgan, Tanqueray and Guinness, will invest an estimated $115 million over three years to build a 1.8 million proof gallon distillery and six barrel storage warehouses in Shelby County, Kentucky.

According to the firm “while finalization 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 plans to 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."

The proposed distillery will be designed to fit in with the surrounding countryside and during construction, Diageo will take measures to conserve the natural landscape in the area, the company said. Approximately 100 acres of land around the property line will act as a natural barrier to site operations. Diageo North America noted it has a strong record of achieving zero waste to landfill in its operations, and the company aims to achieve the same in Kentucky. Diageo also plans to collaborate with the local community for the recycling and reuse of materials generated from the proposed facility. Diageo hopes to receive approvals and to break ground in the coming months with the goal of having the distillery operational in late 2016.

"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."

Diageo announced in February that it will be opening a Visitor Center at its legendary Stitzel-Weller Distillery in Louisville. Diageo hopes that the Stitzel-Weller Visitor Center will soon be included on the Kentucky Bourbon Trail tour.

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