Kentucky’s Bourbon distilleries triple in two years

The number of distillers in Kentucky has tripled in two years to the most seen in the state since the repeal of Prohibition.

There are over 5.3 million barrels currently ageing in Kentucky warehouses

The boom in American whiskey in recent years has led to the creation of 21 new licensed distilling companies in the state since 2012, bringing the total number operating in Kentucky to 31.

Distilling output has grown 53% in the last two years, while ageing whiskey stocks are now at their highest levels in 40 years, with over 5.3 million barrels resting in Kentucky.

According to a new six-month study by the University of Louisville’s Urban Studies Institute, in conjunction with the Kentucky Distillers’ Association (KDA) and the Kentucky Agricultural Development Board, the industry is experiencing “momentous growth”.

The findings have led the KDA to label the current boom as the “golden age of Bourbon”.

Steve Beshear, governor of Kentucky, said: “We all knew the Bourbon renaissance was taking this iconic industry to new levels, but this data is absolutely phenomenal.

“The amount of progress is unrivalled and unparalleled. This proves the Bourbon boom is real and producing results for all Kentuckians.”

The state’s distilling industry contributes US$3bn to Kentucky’s economy every year, up two-thirds in just two years, and employs over 15.400 people.

Kentucky now has the eighth largest distilling industry in terms of the number of operating distilleries, ranking behind Washington, New York, Colorado, Oregon and Texas.

The KDA claims the top five distilling states have more “relaxed” regulations and lowered entry costs, making it easier for new companies to establish themselves than in Kentucky.

“It’s clear that we still have work ahead of us,” added Beshear. “We have the most distilleries since Prohibition, yet we’re losing ground in attracting new companies as other states modernise their alcohol and tourism laws to make it more appealing to locate there.”

David Adkisson, president and CEO of the Kentucky Chamber of Commerce, added that Kentucky’s title as the US’s largest Bourbon producing state could easily topple.

“We are fortunate to have a thriving Bourbon industry today, but what happens if our historic monopoly starts to slip away?” Adkisson said. “Suddenly, we only produce 80 or 85 percent of the world’s Bourbon. We can’t afford to let that happen.

“We made great strides this past legislative session to nurture new growth, but we must be proactive as other states look to capture more of our signature spirit.”