Brown-Forman Plans Louisville, Kentucky, Distillery Expansion
The distillery expansion will double the capacity of the facility while remaining on the same parcels of land. Construction is expected to take more than two years to complete. The site, located off of Dixie Highway in Shively, will be fully operational throughout this period.
According to company officials, as part of the production expansion Old Forester will create an oak tree nursery on the property for a long-term study of oak tree sustainability, part of the company’s overall effort to ensure the future viability of one of the most critical ingredients in bourbon making.
“The demand for American whiskey worldwide is a result of the craftsmanship and specialness of Kentucky’s signature spirit,” said Alex Alvarez, Chief Production and Sustainability Officer, Brown-Forman. “This expansion will allow us to increase production, improve efficiency, and enhance the workspace so we can continue bringing whiskey, made right here in Louisville, Kentucky, to the world.”
To encourage investment in this growing industry, the Kentucky Cabinet for Economic Development approved Brown-Forman for tax incentives up to $5 million under the Kentucky Reinvestment Act. This performance-based incentive allows a company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting certain targets. An additional $500,000 was approved under the Kentucky Enterprise Initiative Act, which allows companies to recoup Kentucky sales and use tax on certain construction costs, building fixtures, equipment used in research and development, and electronic processing equipment.
Brown-Forman said its premium bourbons have enjoyed exceptional growth over the last decade, with reported net sales of +18% in the first half of the company’s current fiscal year.
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