Bourbon industry brings significant economic impact to Kentucky

Kentucky’s bourbon industry is rich in tradition but also means a bright future in the commonwealth.

As a signature industry in the state, Kentucky’s bourbon and spirits sector is responsible for over 23,000 jobs, with an annual payroll topping $2.16 billion. The key sector also generates $9 billion in economic impact, providing a significant boost to the state’s soaring economy.

Since the beginning of Gov. Andy Beshear’s administration, Kentucky’s bourbon and spirits industry has announced 102 new location and expansion projects, totaling $4.2 billion in investment and creating over 1,800 jobs.

At no point was this impact felt more than in 2022, when Kentucky recorded its single best year for growth of its signature industry, with private-sector new-location and expansion projects totaling over $2.1 billion in investments and approximately 700 new jobs for Kentucky residents.

This record-setting year was highlighted by Louisville-based Sazerac Co., which in November 2022 announced the largest distilled spirits-related investment on record in Kentucky history with a $600 million investment in London. The project is creating up to 50 full-time jobs and supporting the company’s continued growth.

In July of that year, Beam Suntory announced the expansion of its Jim Beam Brands Co. with a $400 million investment that will create more than 50 full-time jobs at the Booker Noe Distillery in Boston.

“The growth of Kentucky’s bourbon industry is one of the most important factors in our state’s recent economic success,” said Gov. Beshear. “We’ve made tremendous strides in not only growing the number of distilleries in the commonwealth but increasing the supporting infrastructure of the industry, adding rickhouses, storage warehouses, bottling centers and manufacturing facilities all over the state. Combined with the emphasis on tourism, our bourbon and spirits sector is creating job opportunities and driving economic momentum in every corner of Kentucky.”

That success has continued, highlighted by major announcements from both Legacy Spirits of Kentucky, LLC and Staghorn. Legacy Spirits announced a more than $250 million investment in a new bourbon distillery and restaurant in Madison County, creating 80 new Kentucky jobs. Meanwhile, Staghorn announced a new distillery in Garrard County, another $250 million project creating 60 quality jobs.

Those are just a few of the recent significant announcements helping move the industry forward in Kentucky.

Kentucky’s continued bourbon boom has played a critical role in the state’s record-surging economy and shows no signs of slowing down. As of the end of 2023, there are 100 licensed distilleries operated by 84 companies in 42 Kentucky counties, five times the number of distilleries since 2009, with a 135% growth in employment and a 160% growth in wages.

This growth has played a significant role in job creation as well. Since 2001, distillery employment has risen 130%, while the rest of Kentucky’s manufacturers have shed 20.5% of their employees. The average annual salary and wages per Kentucky distillery team member is $94,000 compared to the national average of $69,000 – thanks in large part to the number of headquarters and executive positions in Kentucky.

Distillers across the state are setting new marks for production. Distillers produced a record 2.7 million barrels of Bourbon in 2022, the fifth year in a row topping the 2-million-barrel production mark. Production has skyrocketed nearly 500% since the turn of the century – with around 455,000 barrels produced in 1999 – and 240% since 2009. Kentucky boasted more than 12.6 million barrels of Bourbon aging in warehouses across the state as of January 2023, the first time inventory reached the 12 million milestone.

If the industry continues at its current growth rate, by 2025, distilling is anticipated to support 28,000 jobs with a payroll of $3 billion, reaching the $10 billion economic impact mark, and provide more than $436 million in local and state tax revenue from production and consumption.

The continued growth and expansion of distilleries, barrel storage warehouses and bottling and distribution centers continues to play a major role in the commonwealth’s continued economic success. 

The momentum of one of the commonwealth’s signature industries is fueling growth in communities across the state, from startups to distilleries rich in history. There’s no question that bourbon is booming in Kentucky.

Members of the editorial and news staff of USA TODAY Network were not involved in the creation of this content.