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The Proof is Here®: Bourbon Pours Billions into Kentucky Economy
Study Shows More Distillers, Jobs, Investment – and Competition
FRANKFORT, Ky. – Kentucky Bourbon is expanding its status as a premier signature industry, now pouring $9 billion into the Bluegrass economy every year and generating more than 22,500 jobs with $1.23 billion in payroll, Gov. Andy Beshear and legislative leaders announced today.
Distilling also contributes more than $285 million in local and state tax revenue and is in the middle of a massive $5.2 billion capital investment spree that is creating more good-paying jobs and opportunities for supply chain partners, farmers, communities and tourism than ever before.
“We all know that Kentucky crafts 95% of the world’s Bourbon, and 100% of the Bourbon worth drinking,” Gov. Beshear said. “But today’s news proves that our signature spirit is so much more, and the growth is simply staggering.
“Distilleries, jobs, wages, revenue and investment are up triple digits across the board in the last 12 years. In turn, this amber wave has spurred more corn production, barrel cooperages and other supply-side manufacturers that are sustaining families and adding vibrancy to local communities.
“I’m thrilled Team Kentucky is part of this growth and am glad to help move it forward for the decades to come,” Gov. Beshear said.
The news comes from the biennial report conducted by noted economist Dr. Paul Coomes and commissioned by the non-profit Kentucky Distillers’ Association trade group. This is the sixth report since 2009 that charts growth and challenges facing Bourbon and distilled spirits.
KDA President Eric Gregory said the study highlights how the industry has effectively transformed itself into a global and economic powerhouse over the past 12 years. “Leadership, partnership and a focused mission on working together and growing the pie,” he said.
That has included promoting Kentucky as the gold standard for distilling, research and responsibility; expanding the popular Kentucky Bourbon Trail® tourism attraction; welcoming and mentoring craft distillers as the next generation; and working with elected officials to modernize alcohol laws and remove barriers to growth.
“We’re thrilled that Bourbon is at an all-time high since the glorious Repeal of Prohibition, but we can’t let success or complacency curtail this strong momentum,” he said. “We have more jobs and distilleries than ever before, but we also have more competition from all 50 states.”
The study notes there are now more than 2,200 distilleries in the U.S. due to the booming craft movement. That has slashed Kentucky’s share of distilleries nationwide from 24% to 6%, and jobs from 43% to 30%. Ten states have more licensed distillery operations than Kentucky.
“Bourbon is a great investment for Kentucky, and this study proves that,” Gregory said. “But more than 2,000 distilleries have made the decision not to locate in Kentucky, despite our rich traditions and ready-made infrastructure.
“It is critical that distillers, partners and elected officials continue to work together to eliminate artificial and unnecessary barriers to growth. Doing so will attract more distillers and investment to the Commonwealth. Our economic future is in our hands.”
The study’s major highlights include:
· $9 billion in economic output every year
· More than 22,500 jobs, up 83% in last 20 years
· $1.23 billion in payroll, up 250% in last 20 years
· Average salary of $101,567 – the first time that amount has exceeded $100,000
· KDA distillers bought 17 million bushels of corn in 2020, with 75% coming from Kentucky farmers
· Corn production has tripled in many Kentucky counties where distillers are located
· All-time record of 10.3 million aging barrels of Bourbon, the first time over 10 million
· Bourbon production – number of barrels filled each year – is up 435% since 1999
· Kentucky distillers filled a record 2.4 million barrels in 2020
· $5.2 billion in capital projects completed or planned by 2025, including more than $100 million to build or expand Kentucky Bourbon Trail® experiences
· Investments between 2021-2025 will create 4,565 new jobs, $258 million in payroll and $29 million in tax revenue
· Distilling has the highest job spin-off factor among top 20 Kentucky manufacturers by employees; for every distilling job, three more are created
· Value of distillers’ real and tangible property has quadrupled in last 12 years to $1.49 billion
· Kentucky continues to tax distilling higher than all other large industries in the Commonwealth.
· Distilling production and consumption generates $286 million in local and state tax revenue annually. That’s $179 million more tax revenue a year versus 12 years ago.
· Kentucky has the fifth-highest Bourbon and spirits tax rate in the country, and the state’s distillers by far pay more in federal alcohol tax – $1.8 billion – than any other state
· The KDA’s Kentucky Bourbon Trail® and Kentucky Bourbon Trail Craft Tour® experiences continue their rapid rebound from COVID and closures, up 160% in total attendance from last year and just down slightly from pre-pandemic record in 2019.
At a press conference announcing the study’s results, Gregory praised legislative leaders for revolutionizing Kentucky’s archaic alcohol laws and in many cases, “just getting government out of the way so our business can flourish.”
In the Senate, Gregory thanked Senate President Robert Stivers, Senate Majority Leader Damon Thayer, Senate Licensing & Occupations Chairman John Schickel and Senate Democratic Leader Morgan McGarvey for their bold leadership in advancing reforms.
Sen. Stivers created the Bourbon Barrel Reinvestment Tax Credit in 2014 to offset the discriminatory tax that distillers pay on aging barrels. Gregory said the credit stimulated barrel production leading to now-record inventories.
Sens. Thayer and McGarvey in 2020 championed landmark legislation to make Kentucky a model for direct-to-consumer spirits shipping around the country. In 2016, Sen. Schickel’s historic Senate Bill 11 authorized cocktail sales at distilleries and led to a surge of robust, immersive tourism experiences and record attendance.
Stivers, one of the longest serving senate presidents in the country, said, “We’ve seen first-hand how simply removing a tax or an outdated law leads to more high-quality jobs and record investment levels in our signature spirit. We also understand other states are watching Kentucky and desperately want what is unique to the Commonwealth.
“Make no mistake, though, the only place to experience the authenticity of Bourbon is right here in Kentucky and we must maintain our distilling dominance. For all of these reasons, I strongly encourage my fellow members of the Senate to do our part to keep this momentum flowing.”
In the House, Gregory applauded Speaker David Osborne, Majority Whip Chad McCoy, House Licensing & Occupations Chairman Adam Koenig and House Democratic Leader Joni Jenkins for their outstanding support.
Rep. Osborne’s pro-business tenure has paved the way for multiple reforms and protections, including Rep. McCoy’s “vintage spirits” bill in 2017 to boost hospitality and tourism and Rep. Koenig’s repeated success with direct shipping legislation (2020 and 2021). Rep. Jenkins has helped pass many Bourbon-related bills in an overwhelmingly bipartisan fashion.
Speaker Osborne said, “Kentucky has everything a distiller needs to grow and thrive,but we have some work to do in modernizing our tax code. Too often our laws restrict the free market when they could be spurring economic growth in all sectors. We are committed to this work and look forward to working with KDA and other stakeholders.
“It might take years to age a great Bourbon, but we can’t wait to leverage this momentum.We must continue to press forward, build on the tremendous growth announced today, and attract more jobs and investment for the benefit of all Kentuckians.”
Ashli Watts, President & CEO of the Kentucky Chamber of Commerce, echoed legislative leaders, noting that distilling’s high spin-off factor leads to a stronger economy. “It’s clearer than ever that Bourbon is a great investment for the future of Kentucky,” she said.
Tax reform is one of the Chamber’s top priorities this legislative session, and Watts said that includes final relief from the discriminatory barrel tax. Kentucky remains the only place in the world that taxes aging barrels of spirits, making it harder to lure new distilleries to the state.
Even with the 2014 tax credit, the escalating number of barrels – and therefore taxes – now far outpaces the amount of credit that distillers can take. Some large distillers now realize only 30% of the credit.
By law, distillers are required to reinvest that credit back into their Kentucky facilities. Watts encouraged the legislature to make the credit refundable or transferrable, which would lead to more investment, more distillers in Kentucky and more jobs.
“With so many beneficiaries of Bourbon’s success, why would we keep barrel taxes in place and leave additional growth on the table?” she said. “One sure way to encourage job creation and investment is to eliminate the burdensome barrel tax that shackles distilling’s growth.”
Kevin Smith, Chairman of the KDA’s Board of Directors and Vice President of Bourbon Affairs at Beam Suntory, thanked the state’s leadership for their commitment to the distilling industry.
“We are grateful that lawmakers and the Governor recognize the vital role our industry plays in jobs, revenue and tourism. And we look forward to working with them to continue this record momentum for generations of Kentuckians to come,” Smith said.“Working together, we are stronger. We are focused on the future and focused on creating a strong foundation that ensures Kentucky’s rightful place as the one, true and authentic home of Bourbon.”
VIEW THE FULL 2021 REPORT HERE.
The KDA is a non-profit trade association founded in 1880 to promote, protect and elevate Kentucky’s signature Bourbon and distilled spirits industry. Visit www.kybourbon.com and www.kybourbontrail.com to learn more. KENTUCKY BOURBON TRAIL®, BOURBON TRAIL™, KENTUCKY BOURBON TRAIL CRAFT TOUR®, KENTUCKY BOURBON AFFAIR™, KBT™, ORDER OF THE WRIT®, KENTUCKY DISTILLERS’ ASSOCIATION®, and KENTUCKY BOURBON TRAIL OFFICIAL SPONSOR® and associated designs and logos are trademarks/service marks of the Kentucky Distillers’ Association. Please enjoy responsibly.
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BRAW BURNS CELEBRATIONS
With many of our Burns Night celebrations starting this weekend AND our virtual Big Burns Bash happening on Thursday, 27 January be sure to get involved and join us for a dram as we celebrate Scotland’s National Poet with the finest limited edition single cask Scotch malt whisky to be found anywhere in the world. Even if it’s simply to raise a Society toast on Burns Night itself on Tuesday, 25 January.
For those that can’t join us at a Society event, we’ve gathered some advice about how to make the most of Burns Night when we can’t get together in person. Click over to Unfiltered online to read our guide to hosting a digital Burns supper with people far and near.
BRAW BURNS SALE:
We’re celebrating Burns Night with a sensational seasonal sale. Enjoy a 15% saving on our Burns Night recommendations – order now for delivery before the big event.
Use code: (JOIN THE SOCIETY TO SEE THE CODE!)
Ends 1 Feb 2022 – Saving available online. Selected bottlings only and subject to availability. Coupon code must be applied to online basket before checkout. Cannot be used in conjunction with any other offers, applied retrospectively or exchanged for cash.
In Burns Week celebration, we’re releasing 10 braw bottlings for the occasion – including six different peated styles. Perfect for impressing the senses and your guests, click over to our website to discover more or explore our recommendations
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
The latest of this customer favourite, big sherry monster from Pitlochry’s very own Edradour Distillery. The epitome of heavily sherried single cask whisky. From single sherry butt #385 and bottled 5th December 2021 yielding 638 bottles at 54.8%
Buy – Edradour 12yo – £121/ €121* / $137* / c$171*
Edradour Distillery was formed in 1825 by a group of eight local farmers. Situated at Milton of Edradour near Pitlochry and still just a farm sized distillery equipped with a Morton refrigerator to cool the worts and two wee stills with their spirit cooled in a single worm tub. Whilst ranked amongst the small working distilleries in Scotland its owners Signatory Vintage have plans to increase its size and output. Official distillery releases include the Edradour 10 Year Old, Barolo Cask and Sherry Cask Ibisco decanters.
Milroy’s
‘Burns Night’
25th January 2022 – Soho whisky bar – 6:30pm
Join us for an evening of fine whisky, food and all things Scottish with our friends from the Craigellachie Distillery. Matthew Cordiner, Global Malts Ambassador from Bacardi, will be hosting a fun and informative tasting before we bless the haggis and enjoy a wee Scottish dram to the sounds of bagpipes! We will be greeting you with a Craigellachie Highball followed by a dram of Craigellachie 17yo and a dram of Craigellachie 31yo!
For tickets purchasing please click the link below:
Milroy’s of Spitalfields
‘Burns Night’
25th January 2022 -Spitalfields
Join us this Burns Night for an evening of fine whisky and food with our friends at Bruichladdich Distillery. It will be an evening of two halves: enjoy your first course in our newly renovated Port Charlotte terrace, while being warmed by a dram of Port Charlotte 10. You will then be taken into our Tasting Room, where you will be served a hearty Scottish main course alongside a dram of Bruichladdich Classic Laddie & Octomore 12.1. The evening will finish with a classic Cranachan and a to die for dram of the Black Arts 9.1. When the dinner is finished, feel free to join the festivities downstairs or retire to the Port Charlotte terrace for a cigar.
19:00 – 21:00
£75pp
.
Menu
Haggis Rarebit
Haggis | Vintage Cheddar Rarebit Sauce | Bruichladdich Red Onion Chutney | Sourdough
Port Charlotte 10 Year Old
.
Beef Shin Scottish Stovies Stew
Served with crusty bread and oat cakes
Bruichladdich Classic Laddie & Octomore 12.1
.
Bruichladdich Cranachan
Raspberries | Bruichladdich Cream | Oatmeal | Heather Honey
Black Art 9.1
Vegetarian menu available please email to request
Any questions please email us at hello@thedramhouse.co.uk
www.thedramhouse.co.uk
CELEBRATE ROBERT BURNS WITH THE SCOTCH MALT WHISKY SOCIETY:
SMWS LAUNCHES VIRTUAL BIG BURNS BASH
The Scotch Malt Whisky Society raises a glass to Robert Burns and brings together both members and non-members in global virtual gathering
Whisky Tasting at The Vaults
The Scotch Malt Whisky Society (SMWS) will host a virtual Big Burns Bash to celebrate the life and poetry of Robert Burns, while appreciating the finest Scotch malt whisky from the world’s most entertaining whisky club.
Taking place on Thursday 27 January (8pm until 10pm GMT) members and non-members from across the world are invited to join the Society’s Burns Night live stream on both Facebook and YouTube that features a line-up of music and poetry performances.
Hosted by long-standing BBC Radio Scotland presenter and whisky enthusiast, Vic Galloway, guests will be treated to music from Honeyblood’s Stina Tweeddale, Skye-based musician Donald Livingstone and Jamaican artists Nickeishia Barnes and Steve ‘Lightning’ Newland. Society ambassador John McCheyne provides the ‘Immortal Memory’ and academic and human rights activist. Sir Geoff Palmer will discuss what Burns means to him. There will also be live poetry performances and chat with Scottish actor Tam Dean Burn and Scots-language poet Len Pennie.
The virtual Big Burns Bash is a unique event, encouraging both established and newly joined Society members and whisky enthusiasts from across the UK, America, Asia and Europe to come together and unite in their shared passion for Society whisky and Scottish culture.
Alongside the Big Burns Bash, the Society is hosting a selection of Burns Night events and whisky tastings for members across Society venues in London, Glasgow and Edinburgh.
The key Burns Night events for Society members include Bath Street’s Burns Night with Glengoyne Distillery (24 January), a Greville Street Burns Night Supper, which features a whisky tasting followed by a delicious three course meal (27 January) and an evening of all things “bard” at The Vaults’ Burns Night celebration, A Glass O’ Whisky Punch Wi’ Honest Men! (25 January).
Richard Goslan, Chief Storyteller at The Scotch Malt Whisky Society, said: “We’re looking forward to bringing both our members and non-members of the SMWS around the world together for our virtual Big Burns Bash. It’s a fantastic opportunity to come together, enjoy some exceptional whisky, traditional music and poetry, while honouring the life and work of one of Scotland’s most famous sons with a Society twist on your traditional Burns Night.
“We also want this year’s Burns Night celebrations to cater for all Society members, through a hybrid of in-venue and virtual events. We look forward to welcoming as many whisky and poetry enthusiasts to our virtual gathering as possible, as we raise a Society dram to the one and only Robert Burns.”
For more information on the virtual Big Burns Bash please visit: https://unfiltered.smws.com/unfiltered-01-2022/big-burns-bash/
Scotch Malt Whisky Society, Bath Street, Glasgow.
The Big Burns Bash Global Timings
Los Angeles: 12 noon
Montreal & New York: 3pm
Shanghai: 4am
Tokyo: 5am
Sydney: 8am
The Scotch Malt Whisky Society
#SMWS
Notes
About The Scotch Malt Whisky Society
From our good friends at The Golden Cask, we selected two exclusive single cask from North British Distillery. Very rare as official releases, independent bottlings like these are are exceptional opportunity for exploring well aged whisky. Matured in single bourbon barrels, natural colour and un-chillfiltered.
North British 30 Year Old Cask #CG001 yielding 115 bottles at 49.0%
North British 30 Year Old 1991 vintage Lowland single grain Scotch whisky. Single Bourbon barrel #CG001 distilled May 1991 and bottled September 2021 by House of Macduff for the Golden Cask series. 115 numbered bottles exclusive to The Whisky Barrel.
North British 30 Year Old Cask #CG002 yielding only 42 bottles carries a little more colour and oak influence.
North British 30 Year Old 1991 vintage Lowland single grain Scotch whisky. Single Bourbon barrel #CG002 distilled May 1991 and bottled September 2021 by House of Macduff for the Golden Cask series. Only 46 numbered bottles exclusive to The Whisky Barrel.
Buy – North British 30yo #CG001 – £99 / €99* / $113* / c$141*
Buy – North British 30yo #CG002 – £99 / €99* / $113* / c$141*
North British Distillery was established on farmland to the west of Edinburgh in 1885 by Andrew Usher, John M. Crabbie and William Sanderson. Since then the city has expanded ever outwards and now the distillery resides in the Gorgie area of Edinburgh. North British opened in 1887 to guarantee supplies of grain whisky for its owner’s cordials and scotch whisky blending businesses. It is equipped with four Coffey stills to produce grain spirit at 94.5% alcohol and multi-million litres of spirit annually. Whilst most of its whisky matures in racked warehouses in the central Lowlands, a small number of casks spend at least eight years at the distillery in dunnage Warehouse No.1. Official releases are very few but excellent independent ones are available from Hart Brothers and Hunter Laing.
