Beam Suntory earmarks US$1bn+ for Bourbon

10th November, 2016 by Annie Hayes

Beam Suntory has announced plans to invest more than US$1 billion in Kentucky Bourbon production over the next five years, as it opens a new seven-storey rackhouse that can house more than 59,000 barrels.

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Beam Suntory has opened its first new rackhouse in Frankfort since 1968

The firm – which owns a number of Bourbon brands including Jim Beam, Maker’s Mark and Basil Hayden’s – will use the money to bolster various aspects of the production process, including grains, barrels, payroll and capital expenditures.

In a bid to cater to surging global demand for Bourbon, the firm has opened its first new rackhouse in Frankfort since 1968; also the largest rackhouse that can currently be built under current Kentucky state law.

The new building spans more than 275,000 square feet, and is the largest of Beam Suntory’s 112 rackhouses in Kentucky. The facilities can hold more than 59,000 barrels; 17% more than its next-largest warehouse.

“The need for this incredible new rackhouse really underscores the global thirst for Bourbon,” said David Hunter, chief supply chain officer, Beam Suntory.

“I’m so proud of the team here in Frankfort, and all of our operations in Kentucky, who have been working so hard to keep up with the pace of demand for bourbon around the world.”

“This is a big moment for our entire campus here at Frankfort,” added Alan Mitchell, general manager, Frankfort.

“Not only will this new facility give us ample space for ageing our incredible products, but its close proximity to the bottling lines will make transfer efficient.”

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