Kentucky Bourbon’s Impact On State Economy Remains Strong & Substantial

Latest Data Shows Distilling Now $10.6 Billion Industry Supporting Local & State Economies Despite Mounting Headwinds

FRANKFORT, Ky. (February 2, 2026) – As outside threats continue to jeopardize its future growth, Kentucky Bourbon remains a key and substantial contributor to the state’s economy, as a $10.6 billion signature industry supporting nearly 24,000 jobs, a new report shows.

Yet its long-term fortunes remain a roller coaster of uncertainty and unpredictability, threatened by a volatile global trade arena, shifting generational consumer tastes, soaring barrel taxes, and evolving market and geopolitical conditions that have slowed alcohol sales and slashed exports.

The eighth edition of the biennial study using the latest data also shows the distilling industry bought a record 84% of its corn from Kentucky farm families and now generates an all-time high of $372 million in state and local tax revenue.

“This comprehensive analysis demonstrates the economic impact of Kentucky’s homegrown and historic Bourbon industry, which remains significantly ahead in jobs, investment and stature from over a decade ago,” said Eric Gregory, president of the Kentucky Distillers’ Association.

“Bourbon is a long-term business, and the data shows that its Kentucky foundation remains strong,” he said. “But we also must remember that its future isn’t guaranteed and this data is a snapshot in time.

“We need the support of elected officials at every level of government to help create a stable, competitive environment so Bourbon can produce more American jobs, satisfy the global thirst for our signature spirit and continue to invest in our Kentucky home.”

The report was conducted by noted Kentucky economist Dr. Mike Clark using the latest data from the U.S. Bureau of Labor Statistics, the U.S. Census Bureau, the Kentucky Department of Revenue, the Kentucky Cabinet for Economic Development and more trusted sources.

Dr. Clark is Director of the Center for Business and Economic Research at the University of Kentucky and the former Chief Economist for the Kentucky Legislative Research Commission. He takes over the biennial study from Dr. Paul Coomes, who has retired.

Among the report’s top findings, Kentucky’s distilling industry now:

• Contributes $10.6 billion in annual economic impact to Kentucky, up from $9 billion in the previous study released in early 2024.
• Supports 23,935 jobs with $2 billion in salaries, wages and benefits, an increase of more than 800 jobs in the last two years despite recent cutbacks.
• Generates $372 million in local and state tax revenue every year, an increase of $200 million over the last 10 years alone.
• Reports plans to invest another $1.45 billion in the next five years.
• Purchases 3 million bushels of corn annually, of which KDA members say 84% comes from Kentucky farmers, up from 70% in the previous report.
• Has more licensed distilleries than ever before, with 125 locations owned and operated by 104 companies in 45 of the state’s 120 counties. 
• Pays a skyrocketing amount of taxes on aging barrels of spirits, including $75 million in 2025, a 163% surge in the last five years alone.
• Stores a record 1 million barrels of spirits, of which 16.1 million are Bourbon.
• Provides the second-highest job multiplier in the state behind the automobile industry, supporting Kentucky farm families, cooperages, truckers and more.
• Dominates the national distilling scene with 27% of both the country’s spirits output and employment, with Tennessee second at 8.4% .

This marks the eighth study of the impact of Kentucky’s distilling industry on the state economy since 2009. “Together, these reports provide a clear, long-term record of Kentucky Bourbon’s growth as a signature industry and the policy challenges that determine its future,” Gregory said.

“Kentucky Bourbon has been around for more than 200 years and overcome its fair share of challenges. By working together, and with the sacred name of Kentucky on every bottle, we must ensure the next report is a toast to progress.”

2026 Bourbon Economy Report Quotes

Kentucky Governor Andy Beshear

“Despite national challenges from tariffs and harmful federal policies, Kentucky’s $10.6 billion bourbon industry continues to show the world its importance by supporting nearly 24,000 jobs and generating a record $372 million in local and state tax revenue,” said Gov. Andy Beshear. “This industry is essential to our success and way of life, and as Governor I’m going to keep standing up for Kentucky bourbon and the hardworking people who make it so special.”

Kentucky Senate President Robert Stivers pointed to the industry’s broadening geographical impact.

“One of the many positive outcomes from the Kentucky Bourbon’s industry’s long-term growth is that rural communities have benefited economically, right alongside our cities,” Stivers said. “There are now distilleries from Pikeville to Paducah and from Augusta to Adairville. Forty-five Kentucky counties now have at least one distillery, with one developing in my home county of Clay. That’s a number far beyond the industry’s traditional core counties where these operations are bringing commerce, tourism and vibrancy to their communities while attracting additional development like restaurants, lodging and retail.”

Kentucky House Speaker David Osborne said the road for Bourbon’s success runs through the General Assembly.

“It should surprise no one that legislative action to modernize our Commonwealth’s alcohol laws, advance responsibility measures and reform taxes to create parity all charted the path for Kentucky Bourbon’s growth the past decade,” Osborne said. “Now Bourbon attracts tourists by the millions, contributes abundantly to our workforce and tax base, and makes Kentucky an envy of other states and nations across the globe.”

Kentucky House Speaker Pro Tempore David Meade tied distilling’s growth to pro-business policies.

“The kind of prosperity and broad impact in this comprehensive study clearly demonstrates what happens when elected leaders pass pro-business policies to unburden a signature industry from outdated and cumbersome policies and punishing taxes,” Meade said.

Founded in 1880, the Kentucky Distillers’ Association (KDA) is the Worldwide Voice of Bourbon

About the Kentucky Distillers’ Association:

Founded in 1880, the Kentucky Distillers’ Association is the legendary voice for Kentucky’s signature Bourbon and distilled spirits industry. Its diverse and growing membership produces the overwhelming majority of the world’s Bourbon, from historic, global brands to emerging micro distilleries that are fostering the next generation of the Commonwealth’s landmark economic engine and its thriving, timeless craft. Member benefits include media relations, international trade development, private sampling events, technical assistance, economic development support, networking, legal defense, marketing strategies, governmental and regulatory advocacy and innovative tourism experiences through the KDA’s world-famous Kentucky Bourbon Trail® and Kentucky Bourbon Trail Craft Tour® adventures. A 501(c)(6) nonprofit organization, the KDA maintains an open membership policy, champions a strong commitment to the responsible and moderate consumption of spirits, and fights to curb underage drinking and drunk driving. Learn more at www.kybourbon.com and www.kybourbontrail.com.

MARCH 2026 AUCTION NOW LIVE!

Spring is in the air, and while this month’s auction may be small in size, it’s certainly big in character—packed with fascinating bottles. Released in 2010 to mark the opening of The Whisky Lounge at The Vintners Rooms within The Vaults in Leith, Edinburgh, this rare commemorative bottling of Macallan was produced in an edition of just 250 bottles!

Or, how about this Lagavulin 11 Years Old Manager’s Dram. The Manager’s Dram series has long been one of the most coveted insider releases from the distilleries within the Diageo portfolio. Traditionally reserved for distillery staff, each annual edition is drawn from a single distillery, with the distillery manager selecting exceptional casks to create that year’s bottling. Produced in very limited quantities and presented at natural cask strength, these releases are highly prized by collectors.This example was distilled at Lagavulin, matured for 11 years and bottled at cask strength in 2013.

Glenfiddich’s 2021 collaboration with luxury retailer Mr Porter; Matured in a combination of ex-European sherry casks, ex-bourbon casks and new American oak before being married to create this distinctive limited edition expression. A collectible release limited to just 1,500 bottles worldwide!

Released in 1997 to celebrate the centenary of Aultmore Distillery, this rare commemorative bottling was produced to mark 100 years since the distillery’s founding. The label uniquely lists the staff working at the distillery at the time of its centenary, making it a particularly personal and collectible release. Distilled in 1981 and matured for 16 years in cask #2508, it was bottled at natural cask strength in 1997. Bottle number 9.

These are only a few of the old, limited and collectable bottles featured in our March auction, to view more wee gems visit clickwhiskyauctions.com. Register to bid. Remember, you’ve got to be in it to win it! Auction ends Sunday 22^nd March from 8pm GMT.

Iberian Series #5
Moscatel Cask Single Pot Still Irish Whiskey

75cl · 46% ABV

£83.95

ADD TO BASKET

NOSE : A fresh and floral balance of zesty fruits with dustings of nutmeg and rich vanilla oak.

TASTE : Vibrant fruits combined with textured layers of toffee and honeycomb, subtle undertones of dried herbs, all while the oak remains consistent.

FINISH : Pot still spices and wine seasoned oak lingering until the very end.

A Guide To Irish Whiskey

In many ways, the story of Irish whiskey is the story of whisky itself. Essentially, it’s a spirit made from fermented grains, distilled and aged in wooden casks for a minimum of three years. Often stereotyped as light and delicate, it actually encompasses a great breadth of styles, from richly sherried, spicy pot still whiskies, to bright, tropical blends, and even robustly smoky single malts.

LEARN MORE                  ​SHOP NOW

Year of the Horse – Chinese New Year Edition

The Year of the Horse is almost here – a symbol of momentum, strength and bold new beginnings.

If you haven’t secured yours yet, now’s the time to raise a dram that captures that spirit. The Big Peat Chinese New Year Limited Edition delivers rich smoke, big character and celebratory flair – crafted for festive toasts, meaningful gifting and sharing with good company.

Created specially for the season, this limited release is all about welcoming luck, energy and fresh starts in unforgettable style.

Celebrate with confidence. Toast to what’s ahead.

Ride into the Year of the Horse with Big Peat in hand.

CELEBRATE NOW

KENTUCKY BOURBON TRAIL® PROGRAM LAUNCHES “BUILD YOUR OWN BOURBON TRAIL®” TRIP BUILDER

Plan, Personalize, and Explore the Bourbon Trail™ Like Never Before

FRANKFORT, KY.— The Kentucky Distillers’ Association’s world-famous Kentucky Bourbon Trail® experience has launched its first-ever online trip builder to help visitors customize and personalize their ideal Bourbon adventure.

Visitors can now “Build Your Own Bourbon Trail®” itinerary through a streamlined planning experience at kybourbontrail.com. The digital feature is designed to inspire travel to Kentucky communities and help tourists experience all that Bourbon has to offer.

“Millions of people from all over the world are making the pilgrimage to Kentucky each year to immerse themselves in the art, science and craft of America’s only native spirit,” said Eric Gregory, president of the Kentucky Distillers’ Association that founded the KBT® in 1999.

“But as we’ve grown to a record 68 Bourbon Trail™ destinations, we get a lot of questions about where and how to start planning the trip. This interactive tool will make planning fun and easy to manage and share, while highlighting the beautiful countryside of our beloved Commonwealth.”

Gregory said the “Build Your Own Bourbon Trail®” tool feature puts all the planning essentials in one place so visitors can easily find distilleries, tasting rooms and many other partner experiences.

Guests can curate personalized itineraries, save their plans and conveniently share their trip with friends, family and travel companions. “We’ve spent more than a year thinking through every detail, even down to driving times between distillery experiences,” Gregory said.

Watch the video about how to use the new feature online, here.

Bourbon is one of Kentucky’s most treasured signature industries, generating $10.6 billion in economic impact every year, supporting 24,000 workers with $2 billion in salaries and benefits, and pouring more than $370 million into local and state taxes.

There are now KBT® experiences in 35 of the Commonwealth’s 120 counties, from rural, historic and craft distilleries to modern tasting rooms in Kentucky’s urban core, with Official Gateway partners in Louisville, Lexington, Bardstown, and Northern Kentucky.

Dee Ford, longtime Chair of the KBT® Advisory Group, said the new “Build Your Own Bourbon Trail®” tool offers more than just convenience – it’s a way to find exciting experiences that might not have been on a visitor’s radar.

“After visitors determine which part of Kentucky will be their home base, they’ll now be able to find and explore the many experiences just around the corner,” said Ford, who is Angel’s Envy Brand Home General Manager and a member of the Kentucky Bourbon Hall of Fame®.

“Our new trip builder tool takes into account what’s important for our visitors, including the excitement of discovering that next hidden gem,” she said.

“That’s something that makes the Bourbon Trail™ special. There is so much to see and taste, and always something new. We encourage visitors to slow down and unplug, savor the experience, and come back thirsty for more.”

Across the globe, those curious about what Kentucky Bourbon has to offer can start building their Bourbon Trail™ experience today at kybourbontrail.com.

The feature was developed in collaboration with the KDA’s partner agency Lewis, which has won multiple top-tier awards for its rebranding and marketing of the Bourbon Trail™ tour to appeal to new and returning visitors.

Founded in 1880, the Kentucky Distillers’ Association (KDA) is the Worldwide Voice of Bourbon®.

About the Kentucky Distillers’ Association: 

Founded in 1880, the Kentucky Distillers’ Association is the Worldwide Voice of Bourbon®. Its diverse and growing membership produces the overwhelming majority of the world’s Bourbon, from historic, global brands to emerging micro distilleries that are fostering the next generation of the Commonwealth’s timeless craft. Kentucky Bourbon is a $10.6 billion economic engine generating nearly 24,000 jobs. A 501(c)(6) nonprofit organization, the KDA maintains an open membership policy, champions a strong commitment to the responsible and moderate consumption of spirits, and fights to curb underage drinking and drunk driving. Learn more at www.kybourbon.com and www.kybourbontrail.com.

Single Barrel, Cask Strength, No Compromise
K&L Exclusive Aged Canadian Whisky Duo from Found North
“Allow me to be the first to tell you that this brand is probably the most exciting new bottler in years.” — David Othenin-Girard, K&L Spirits Buyer

These selections are labeled as 12-year bottlings since the base component (50%) comes from 12-year-old stock, but over 30% of the blend is made up of whiskies aged more than 20 years. The result is an under-the-radar gem that wildly overdelivers—offering far more than its age statement or price tag would ever suggest.

The unreal run that Found North has achieved over the last several years is truly unprecedented. The two brothers behind the brand understand whisky—and the whisky business—like few founders in the industry today. They know that every bottle they release must astonish the customer who opens it.

They’ve created a new style of whisky that, while nodding to great innovators before them, transcends traditional categories. Using exceptionally high-quality, well-matured stock from Canada, paired with thoughtful cask selection and a deft blending hand, they’ve developed a system for producing world-class aged whiskies that can stand shoulder to shoulder with the finest in the world.

We’ve always said “yes” to any offer from Found North, so when they presented us with two single casks this year, we snapped up the best of the lot. These powerhouse whiskies were distilled in Canada, aged separately, and then blended and given additional maturation in top-quality barrels.

— Josh Gelfand, K&L Spirits Buyer

Found North “Season 6 – Madeira Finish #6131” K&L Exclusive Single Barrel Cask Strength Canadian Whisky ($99.99)

David Othenin-Girard | K&L Spirits Buyer

If you’re not yet familiar with Found North, allow me to be the first to tell you that this brand is probably the most exciting new bottler in years. The Taylor brothers, who founded the company, seem to have cracked some sort of whisky cheat code. What they’ve proven is that mature whisky doesn’t need to spend its entire life in fresh wood to be complete. If you take well-aged whisky, blend it skillfully, and finish it thoughtfully, you can create something far greater than the sum of its parts.

Of course, it’s not that simple—you need great whisky and great wood from the start. Blending is a huge factor as well, but it’s clear these guys are overachievers on both fronts. We’ve never had a Found North release that didn’t overdeliver, and these two new barrels are no exception.

Let’s start with the Madeira Cask Finish. This one isn’t rye- or corn-heavy; instead, it perfectly balances its aromatic and palate-driven elements. The color is a lovely russet (1.3). The nose is explosive, offering baked orchard fruit, exotic spice, tense earthy oak, candied apricot, gravel, and caramel candies. On the palate, it’s dusty and old-school, with loads of rye spice and earthy warehouse floor notes. With some air, the nose opens beautifully to sweet peach tea, fig jam, pink peppercorn, and wet cement. The palate stays bold, spicy, and earthy, while adding layers of sweet oak and candied corn.

A tremendous and surprising whisky that fits into no box—and doesn’t need to. It’s simply delicious.

Josh Gelfand | K&L Spirits Buyer

These guys sure know how to pick them. Here’s a Canadian whisky that defies what most Americans might expect from the north. Blended from 49% rye, 48% corn, and 3% malted barley—and drawn from barrels aged between 12 and 25 years before a final rest in Madeira casks—this is a stunning example of thoughtful craftsmanship. Each grain and the finishing cask have their moment to shine.

The nose opens with sarsaparilla, allspice, toasted coconut, and buttery pastries, all of which carry gracefully onto the palate. The flavors unfold further, revealing lemon custard (a hallmark of Madeira cask aging), orange marmalade, white chocolate, and a cascade of baking spices. It finishes with a touch of earthy potpourri, laced with spice, dried flowers, and cream soda. Despite the high proof, it drinks with deceptive ease and leaves you wondering what other treasures might be resting in those northern warehouses.

K&L Notes: The resulting mashbill for each barrel is 50% 12yr rye (w/ malted barley, 3% 21yr rye, 13% 15yr corn, 3% 17yr corn, 27% 22yr corn, 4% 25yr corn). These single barrels could not technically be classified as either bourbon or rye, if they’d been distilled here, but barrel #6131 delivers a heady combo of both. Expect sweet stone fruit, earthy soft tannins, exotic wood and wild funk finish. We’re proud to continue supporting Found North. Bottled at cask strength without any dilution, chillfiltration, or additions of any kind.

Found North “Season 6 – Tawny Port Finish #6118” K&L Exclusive Single Barrel Cask Strength Canadian Whisky ($99.99)

David Othenin-Girard | K&L Spirits Buyer

Let’s see how an old Tawny Port cask works with these exceptional aged Canadian rye and corn whiskies. The color is a deep, sanguine auburn (1.5)—an absolute about-face from the Madeira cask—offering dense red fruit notes of cherry, cassis, and raspberry. Next come layers of roasted nuts and rich herbal tones such as cassia bark, cinchona, and kola nut. The palate shows dense rye spice and earthy warehouse floor character more overtly than the Madeira, with the spice kicking up at the end. It begins with sweet, jammy red fruit—dark cherry and fudge—before melding into gravelly rye spice and exotic herbs.

Josh Gelfand | K&L Spirits Buyer

If you really want to see how much a finishing barrel can transform a whisky, look no further. The Found North team continues to uncover exceptional spirits and display blending skills rarely seen from our neighbors to the north. This exclusive release—like its Madeira-casked counterpart—combines an almost even split of corn and rye whiskies with a touch of malted barley, all aged between 12 and 25 years. The blend is then finished in tawny Port casks, creating something that, as cliché as it sounds, is truly greater than the sum of its parts.

The nose opens with blackberry jam, figs, and Mexican chocolate, all wrapped in the warm air of a dusty saloon. Those rich, stewed berries carry through to the palate, joined by clove, anise, wet bark, and a touch of molasses, before finishing with black cherry compote over dense dark chocolate. It’s remarkable how distinct it is from the Madeira-cask version, proving just how dramatically different fortified wine barrels can shape a great blend. Both are stunning and well worth tasting side by side.

K&L Notes: The resulting mashbill for each barrel is 50% 12yr rye (w/ malted barley, 3% 21yr rye, 13% 15yr corn, 3% 17yr corn (new wood), 27% 22yr corn, 4% 25yr corn. These single barrels could not technically be classified as either bourbon or rye, if they’d been distilled here, yet this delicious barrel #6118 delivers the best of both – a bomb of spice, sweet red fruit, dusty earth and sweet oak. We’re proud to continue supporting Found North. Bottled at cask strength without any dilution, chillfiltration, or additions of any kind.

Email: wine@klwines.com
Phone: (877) KL-WINES (Toll Free 877.559.4637)
K&L Wine Merchants 3005 El Camino Real Redwood City, CA 94061 USA
San Francisco, Redwood City, Hollywood CA

Ascent Of Dram 10 Year Old Blended Malt ‘Phase One’

Initiate: Phase One! Behold… The Ascent Of Dram – a new evolutionary step from Decadent Drams. This is our tentative toe in the world of living, evolving casks. Angus has cobbled together a potion of various malt whiskies, peated and sherried, all at ‘least’ 10 years old (some a fair bit older) and married the lot in a refill sherry hogshead. This is the first 100 bottles of Ascent of Dram. Once these are gone, Angus will top up the cask with something different and we’ll see how this potion is evolving when we bottle the next 100 bottles in Phase Two! If you get your mitts on one and try it, let us know what you think. Why not give us some suggestions of what to add to it next that will send it off down mysterious and delicious evolutionary paths…

£95.00 incVAT

Sensory Appreciation for the Weekend

We’re doing something a little different in May… hosting a course on a Saturday! The next Certificate in Sensory Appreciation takes place on 9 May, making it a rare weekend treat. Even better, it follows straight after our flagship Diploma in Single Malt Whisky (7 & 8 May), Expect plenty of practical exercises in this hands-on exploration of taste and aroma with teachers Vic Cameron and Gordon Steele.

📖 Learn More

Did you manage to try our Just a dash ‘Heresy’ releases? While our online stock sold out in record time, our Members’ Rooms still have a few last bottles of  Batch 36: Just a dash – Jammy cobbler and Batch 37: Just a dash – Dundee cake explosion.* Head to your local Members’ Room this upcoming week and check them out!

*Not available at Greville Street

dram-cierge@smws.com

The Scotch Malt Whisky Society, The Vaults, 87 Giles Street, Leith EH6 6BZ

Contact: sales@smws.com or call 0131 555 2929 (Mon-Fri 9am-4.45pm). Visit the Society at here for membership information

This is your chance to join and to take advantage of their great offers!

Spot the SMWS bottles in this amusing You Tube video