Wednesday, September 6, 2017

Bardstown Bourbon Company to Add Capacity, Become Major Producer

Bardstown Bourbon Company (BBC) announced today that it will expand its capacity to allow production of up to six million proof gallons per year. To accomplish this, the distillery will add a second 36-inch beer still, a 12.5k gallon mash cooker, and up to 16 additional fermenters. They expect the expansion to be complete by July of next year. This means more maturation warehouses also will be needed.

The press release claims this expansion will make BBC "one of the largest bourbon distilleries in the world." That's a stretch, but it certainly puts BBC into the major league, probably at number six, which is amazing for a distillery that has only been in operation for a year.

BBC is in direct competition with MGP of Indiana as a contract producer and will be bigger than MGP in terms of whiskey capacity when this expansion is completed. (MGP also produces neutral spirits.)

“The Bardstown Bourbon Company’s rapid growth is extremely exciting,” said David Mandell, President & CEO. “We’re truly helping to reshape the American whiskey market, and the success of our Collaborative Distilling Program demonstrates the massive demand for custom-made, authentic, Kentucky whiskey, bourbon and rye.”

In related news, the Distilled Spirits Council announced today that the value of U.S. distilled spirits exports rose a robust 10.6 percent—up more than $67 million—to a total of $698.5 million in the first half of 2017 as compared with the same period in 2016. In dollar terms, the growth was led by the largest category: American whiskeys including Bourbon, Tennessee Whiskey and American Rye, which rose nearly $27 million to $464.6 million up 6.1 percent. The U.S. also exports small amounts of brandy, vodka, and rum.

These two announcements are related because much of the expansion taking place in the American whiskey business, especially among the majors, is predicated on robust, long-term export growth.

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