The Kentucky State of Bourbon: Steady Growth, Record Taxes

Distillers See Stable Growth Yet Face Record Production Costs & Highest-Ever Barrel Tax Burden As Inflation Roars

FRANKFORT, Ky. – The Kentucky Distillers’ Association today announced that the number of newly filled barrels of Bourbon in Kentucky continued a steady growth of 3% last year, but distillers are now paying four times as much in barrel taxes than they have aging barrels.

Despite a new milestone of 12.6 million barrels of aging Bourbon, companies remain held back by historically high production costs from inflation that caused barrel taxes to skyrocket to more than $50 million this year, a record 30% increase over the previous year.

With double-digit cost increases in Bourbon inputs like grain, cooperage and labor, barrel taxes have more than doubled in the last five years, soaring 122%. Since 2010, barrel taxes have thundered 316% and continue to escalate at a rapid and untenable pace.

Bourbon industry leaders and advocates are emphasizing that this year’s unprecedented barrel valuation of $6.7 billion and resulting barrel taxes are the exact reason the compromise House Bill 5 was so important in the legislative session.

“Last session, Kentucky’s family of distillers argued that disaster was coming for the home-grown industry if elected officials didn’t do something to reign in the ever-growing discriminatory barrel tax,” said KDA President Eric Gregory.

“Thankfully, the Governor and our champions in the General Assembly saw where this was headed and found a sensible compromise to fix the barrel tax while protecting schools and local communities,” he said.

“This year’s barrel report – and the resulting massive barrel tax liability – prove their work was necessary and sets the Bourbon industry on a path to sustainability in Kentucky instead of across our border.”

The bipartisan House Bill 5 compromise signed into law earlier this year phases out the barrel tax over 20 years while protecting funds for schools, fire departments and EMS districts, and gives local governments plenty of time to plan and diversify their tax base.

“Everyone recognized the astonishing tax liability distillers are facing is unsustainable and would be for any business,” said Ashli Watts, President and CEO of the Kentucky Chamber of Commerce. “Without our signature industries like Bourbon, Kentucky will lose.”

“We applaud our elected officials in Frankfort who have embarked on a winning strategy to set Kentucky up for the future. From record economic development to tax reform to rethinking how we retain businesses and employees, they are doing the hard work – including last year’s bipartisan House Bill 5 compromise – to strengthen Kentucky for generations to come.”

The new numbers are based on inventories reported as of Jan. 1, 2023, submitted to the Kentucky Department of Revenue for tax purposes and includes all distilling companies in Kentucky, the vast majority of which are KDA member distilleries.

Total new production increased slightly to 2.7 million barrels, the fifth year in a row that distillers have filled more than 2 million. Total inventory, when counting Bourbon and other spirits like brandy, was 13.3 million barrels, also a record. Total barrel taxes were $50.2 million.

“Bourbon is a manufacturing powerhouse every state would love to recruit,” said Frank Jemley, President and CEO of the Kentucky Association of Manufacturers. “We were losing that competition as distillers faced massive increases in the barrel tax, unique to Kentucky, year after year.

“This year’s numbers are more of the same – steady production growth met with an immense barrel tax liability. But now, with a plan in place to phase out the tax, distillers are looking far into the future right here in Kentucky rather than elsewhere.

“That means more jobs and investment for our Commonwealth, and we’re grateful to the leaders in Frankfort who got it done,” added Jemley.

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

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(L-R: Edward Odim, George McNeil, Becca Smith)

ACEO APPOINTS INAUGURAL CEO TO SPEARHEAD GROWTH

Aceo Limited, a leading  independent whisky bottler and provider of cask whisky management services, has announced a new chapter in its journey, with a major new appointment. Founder and Managing Director, Edward Odim, is transitioning to Chairman, paving the way for one of Scotland’s leading luxury brand directors, George McNeil, to become its inaugural Chief Executive Officer.

Headquartered in Edinburgh, for 25 years Aceo has been steadily building its business centred around cask whisky services as well as its own spirit brands which includes flagship Murray McDavid range of premium Scotch whisky. The company has several whisky maturation warehouses in Speyside, including 40,000 casks at Royal Brackla Distillery. Aceo is also reviving the historic Dallas Dhu Distillery in Speyside, with plans to return whisky production to the site and develop a state-of-the-art visitor attraction that honours its Victorian heritage.

Edward Odim, who has been at the helm of Aceo since its inception, has been instrumental in establishing the company’s reputation for whisky and its strong spirit brands, said:

“I am very pleased to welcome George McNeil as our new CEO. His proven track record in Scottish luxury brands and sales will help steer Aceo into an ambitious future, turbocharging a new era of growth focusing on premiumisation of our brands. With George as CEO, this is the perfect time for me to step into the Chairman role, focusing on strategic oversight and leading our Dallas Dhu Distillery project, whilst George helps to drive forward our brands and their sales.”

George McNeil brings innovative leadership skills and a wealth of luxury brand experience to his new role. For the last 17 years, he has been the Managing Director of the Retail Division at world -renowned heritage cashmere brand Johnstons of Elgin. In this role as part of the Senior Management Team, he helped double turnover to £100m with luxury retail flagship store openings in locations from London to Edinburgh.  George also chaired the internal Sustainability Group, which supported the delivery of Johnstons of Elgin becoming a B Corp. His passion for whisky showcased in his recent role as the Chairman of the Spirit of Speyside Whisky Festival, positions him perfectly to lead Aceo in the next chapter of its history.

Commenting on his new role, Mr McNeil said:

“After 17 wonderful years at world-renowned luxury Speyside textiles company Johnstons of Elgin, I am looking forward to this next chapter where I can combine my experience of retail, sustainable Scottish luxury and importantly, whisky, to build on Aceo’s record and develop the premiumisation and global reach of their expansive portfolio alongside their team. I can’t think of a better way to start 2025.”

ABOUT ACEO

Aceo Limited has been in the Scotch whisky industry for 25 years and has built its own successful spirit brands which are sold around the world – including the award-winning and well-established Murray McDavid whisky. Aceo provides a wide range of B2B services including bottling, label design, cask storage and management, logistics and exports. Aceo has its HQ near Edinburgh but also has strong and longstanding ties with Scotland’s whisky production capital, Speyside. In addition to its whisky maturation warehouses at Kinloss, Coleburn and Royal Brackla (together holding approximately 70,000 casks), Aceo has a Craft Bottling Hall at Dandaleith near Craigellachie.  Aceo is reviving the historic Dallas Dhu Distillery in Speyside, originally built in 1898 and closed since 1983, with plans to return whisky production to the site and develop a state-of-the-art visitor attraction that honours its Victorian heritage.

Aceo is transforming the historic Old Bank in Forres, Moray, into a vibrant whisky hub featuring a bar, restaurant, whisky shop and tasting rooms. Other assets in Speyside include; Dallas Dhu House in Forres, Parkmore Distillery Manager’s House in Dufftown, an old stone-ruined Bothy in the Glenrinnes hills and Tide’s Edge Cottage and Beach Huts in Findhorn.

• Aceo also owns  The Murray McDavid Boat a 60ft traditional ex-pilot wooden boat on the River Clyde in Glasgow which hosts whisky tastings and events
• Click here for more information about Murray McDavid and ULTRA: Masterpieces of Time launch video here.
• Click here for more information on Dallas Dhu Distillery Project

For more information on Aceo Limited visit https://www.aceo.co.uk

Aceo Spirits: X, Facebook, LinkedIn Instagram,

Murray McDavid: X, Facebook, LinkedIn Instagram.

Elijah Craig Returning as ‘Official Bourbon’ of 2024 AT&T Pebble Beach Pro-Am

Elijah Craig Bourbon Speakeasy to feature signature cocktails and engaging consumer activations.

BARDSTOWN, Ky. – Elijah Craig Bourbon is proud to return as the “Official Bourbon” of the AT&T Pebble Beach Pro-Am. One of the fastest growing spirits in the U.S., Elijah Craig has gained a loyal following for its award-winning family of Bourbons and American Whiskeys. The AT&T Pebble Beach Pro-Am has been designated a PGA TOUR Signature Event in 2024. The result is a reimagined tournament and an unbeatable fan experience, with a central focus on the top players from the TOUR competing at Pebble Beach and Spyglass Hill.

As the Official Bourbon partner, Elijah Craig will activate on the Triangle Plaza in the heart of Pebble Beach Golf Links, one of two Monterey Peninsula golf courses making up the tournament grounds. At the Triangle’s “Elijah Craig Bourbon Speakeasy,” spectators can taste the distinctive warm spice & smooth flavor of Elijah Craig Small Batch, enjoy hand-crafted signature cocktails, and engage in photo opportunities after signing their name on an interactive signature wall. Throughout the course at general concessions, fans can also find Elijah Craig featured in the Elijah Craig Signature Old Fashioned. Offsite, consumers in the area will find displays and engagement opportunities at retail and bar locations promoting Elijah Craig’s exclusive sponsorship. Elijah Craig will further support the partnership with an investment in digital advertising and across social media channels.

“Team Elijah Craig embodies the striver mindset of those endeavoring to achieve greatness and master their craft whether that is in the boardroom or the golf course,” said Max Stefka, Elijah Craig Group Product Director. “Players participating in the AT&T Pebble Beach Pro-Am Tournament are the best in their field and we look forward to celebrating their greatness at this PGA TOUR Signature Event.”

One of the most exciting events on the PGA TOUR, the AT&T Pebble Beach Pro-Am is contested annually in front of thousands of spectators and millions of television viewers and features a mix of professional golfers and amateurs. The tournament and host organization, the Monterey Peninsula Foundation, is proud to share that the Foundation donated nearly $18 million to over 200 nonprofits in the Monterey, Santa Cruz, and San Benito counties during their last fiscal year.

Monterey Peninsula Foundation CEO and Tournament Director, Steve John, added “We’re thrilled Elijah Craig is returning to the AT&T Pebble Beach Pro-Am. Fans and spectators will once again be able to enjoy watching the best names in golf with the best name in Bourbon. We’re grateful for the Elijah Craig partnership and will cheers to another successful year together this week at venues throughout the course.”

With golf consumers twice as likely to drink Bourbon compared to the average consumer, the Elijah Craig Bourbon partnership with AT&T Pebble Beach Pro-Am offers a strong fit for the brand as it continues to cement its name in the world of golf through the 19^th Hole Campaign. The campaign extends the fan experience beyond the course including premium media placements in golf publications, digital and social media, consumer contests, and in-store displays rounding out the 360-degree program. The brand also is proud to be named Official Bourbon of the PGA of America, PGA Championship, Women’s KPMG PGA Championship, and the Ryder Cup as well as “The Official Bourbon” of PGA TOUR Pro Golfer Max Homa and Sports Broadcaster Amanda Balionis Renner.  

ABOUT ELIJAH CRAIG BOURBON: Elijah Craig Bourbon bears the name of the Reverend Elijah Craig, known as “The Father of Bourbon,” who established his distillery in 1789 on the banks of Elkhorn Creek in modern-day Georgetown, Kentucky. He is credited with being the first distiller to age his wares in charred oak barrels. The clear, unaged corn whiskey became transformed into a bold amber liquid with a distinctively smooth flavor that makes Bourbon what it is today. Today, Elijah Craig’s community impact continues through Elijah Craig Old Fashioned Week, providing total donations of more than $400,000 to date to organizations supporting the hospitality industry. Produced by Heaven Hill Distillery, the nation’s largest independent, family-owned and operated distillery and the world’s second-largest holder of Kentucky Bourbon, the Elijah Craig lineup includes: Elijah Craig Small Batch Kentucky Straight Bourbon Whiskey, Elijah Craig Straight Rye Whiskey, Elijah Craig Toasted Barrel Kentucky Straight Bourbon Whiskey, Elijah Craig Barrel Proof Kentucky Straight Bourbon Whiskey, and Elijah Craig 18-Year-Old Single Barrel Kentucky Straight Bourbon Whiskey. Elijah Craig’s accolades have included Whisky Advocate’s Whisky of the Year, Best Small Batch Bourbon and Double Gold at the San Francisco World Spirits Competition, and Excellent Highly Recommended honors at the Ultimate Spirits Challenge. For more information, please visit www.elijahcraig.com. Heaven Hill reminds you to “Think Wisely. Drink Wisely.”

Suntory “100th Anniversary – Hakushu” 18 year old Japanese Single Malt Whisky (700ml) $2,500.00 View

While the Hakushu distillery came a bit later than Yamazaki, The House of Suntory is celebrating its centennial with these limited edition special releases from their two single malt distilleries. Both Yamazaki and Hakushu have 100th Anniversary offerings, featuring an understated label and supremely delicious 12-year-old whiskies from their respective distilleries. The unique Japanese style utilizes a wide array of barrel types, peat levels, and still shapes and sizes to produce many different malts at each distillery. The blend of all of these makes for single malt of unmatched complexity and elegance, and the limited supply makes for fanatical following and collectability, envied by nearly every other producer in the world.

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

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Interview: Angel’s Envy’s Owen Martin & Cask Strength 2023 Releases (Bourbon & Rye)

In December 2023, Angel’s Envy Distillery released two new limited additions to its Cask Strength offering — a rye finished in Sauternes and toasted oak casks and a bourbon finished in ruby port casks. We visited the distillery in Louisville, Kentucky, and caught up with master distiller Owen Martin to learn more about these new releases, his whiskey-creation philosophy, and the special finishing casks used to craft these fantastic spirits.

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Kentucky Distillers’ Association

Welcomes Buzzard’s Roost

as Newest Craft Member

Micro Distillery Brings A Mix of Tradition and Innovation to Louisville’s Booming Bourbon Community

FRANKFORT, Ky. – The Kentucky Distillers’ Association (KDA) today announced Buzzard’s Roost Spirits as the newest member of the non-profit trade group that unites and leads Kentucky’s signature Bourbon and distilled spirits industry.

Buzzard’s Roost Spirits, established by co-founders Judith Hollis Jones and Jason Brauner, as a contract distilled brand now is also a micro distillery nestled on Whisky Row in downtown Louisville.

“Building our business on the esteemed Whiskey Row in Louisville was a dream come true for us and we are so excited to now be able to join the Kentucky Distillers’ Association,” said co-founder, Judith Hollis Jones.

“We wouldn’t be where we are today without the support of fellow distillers. That’s what is so special about this work, the Bourbon community and the impact we can have on the wider community when we attract tourism and grow our business.”

Jones and Brauner, both native Kentuckians and Bourbon lovers, met doing barrel picks for independent ventures – Brauner’s Bourbon’s Bistro and Judy’s consultancy focused on client gifts.

Jason had been steeped in the bourbon community for almost 20 years ,with a culinary background, had returned to Kentucky and was looking for an entrepreneurial venture. Together they decided it was time to step into building a bourbon brand.

“We researched all aspects of the industry for a little more than two years to ensure we could start with knowledge,” said Jones.

“We have grown our brand by acquisition of aged whiskey from MGP and others and are preparing for the future with new make produced by Bardstown Bourbon Company and Green River Distillery.”

“From the beginning, the makers at Buzzard’s Roost embraced the traditions that make Kentucky Bourbon such a powerhouse. Working alongside other distillers, they found a new way to share the spirit we love so much,” said Eric Gregory, President of KDA.

“When new members join, we help them explore the future, and I am confident Buzzard’s Roost will be a part of Louisville’s Bourbon community for years to come, bringing new jobs and tourism to the state’s largest city.”

Buzzards Roost joins KDA as a “Craft” level member, aging between 1 and 10,000 barrels per year.

The KDA now has more than 60 member distilleries, the most since the glorious Repeal of Prohibition.

Buzzard’s Roost produces Buzzard’s Roost Barrel Strength Bourbon, Buzzard’s Roost Toasted American Oak Bourbon, Buzzard’s Roost Char # 1 Bourbon, Single Barrel Bourbon for private selection, RYE, Buzzard’s Roost Barrel Strength Rye, Buzzard’s Roost Toasted Barrel Rye and Buzzard’s Roost Char #1 Rye.

Learn more at https://www.buzzardsroostwhiskey.com

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.

Happy New Year! We hope you had a wonderful holiday filled with warmth, laughter, and, of course, some sensational Society drams.

As we start a new year, we’d like to invite you to join us in celebrating the pure pleasure of phenomenal whisky flavours. This First Friday, we have 11 new bottles that perfectly encapsulate the essence of Scotch whisky. And with Burns Night coming up, why not plan your toast to the Bard by choosing a Society dram to drink on that night.

What are you waiting for? Click over to our website now to preview ahead of their release today at 9am.

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JANUARY UNFILTERED

In this month’s Unfiltered, we focus on flavour as the driving force behind everything we do. We explore cask selection, maturation and expert analysis by our Tasting Panel. Check out our feature on sherry-cask maturation and a Q&A with Euan Campbell in a Jerez bodega. We also explore the origins of flavour from various parts of the whisky-making process, starting with malted barley.

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