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Western Kentucky Distilling Plans Beaver Dam, Kentucky, Distillery Complex-Multiple Warehouses

11/09/2022
Western Kentucky Distilling Co. will establish a new distillery and 15 warehouses in Beaver Dam, Kentucky. The up to $30 million project is expected to create 35 jobs in Ohio County.

The company will construct a 25,000-square-foot facility on 64 acres. In phase two Western Kentucky Distilling will expand the new facility by 300,000-square-feet on an additional 16 acres of land. Scheduled to open mid-2023 the distillery will be capable of producing up to 50,000 barrels of whiskey per year, eventually.

“From the best ingredients to an ideal climate for aging, Kentucky is known worldwide as the best place for making whiskey,” said Western Kentucky Distilling Co. COO and Master Distiller Jacob Call. “As someone whose family goes back eight generations in both Kentucky and distilling, I’m proud to be a partner and to help build the new Western Kentucky Distilling Co. At the distillery, we’re celebrating all things Kentucky from our ingredients and equipment to our 100% Kentucky ownership. We look forward to opening next year.”

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in May preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1 million in tax incentives based on the company’s investment of nearly $17.7 million and annual targets of creation and maintenance of 35 Kentucky-resident, full-time jobs across 15 years and paying an average hourly wage of $31.25 including benefits across those jobs.

“The momentum we are seeing in our state’s bourbon and spirits industry is critical to Kentucky's continued economic success,” noted Governor Andy Beshear. “This investment by Western Kentucky Distilling Co. is going to strengthen our bourbon production and bring quality jobs to Ohio County and Western Kentucky. Anytime a company is committed to sourcing all its materials and production right here in the commonwealth, it is a testament to its belief in this great state. I want to thank the leaders of Western Kentucky Distilling Co., and I look forward to their future success.”

Additionally, KEDFA in October approved the company for up to $125,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA) based on an additional $4 million investment. KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments. In addition, the company can receive resources from Kentucky’s workforce service providers.

“The private investment of the Western Kentucky Distilling Co. is an incredible mile marker in economic growth for Ohio County and the surrounding region,” added Former Executive Director of the Ohio County Economic Development Authority Jodi Ashby. “The bourbon industry is Kentucky’s bread and butter and now Ohio County is a part of that! The citizens of Ohio County will prosper in ways that have not even begun to be thought of yet due to the decision of the folks who envisioned this project and brought it to fruition here in Beaver Dam.”

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