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Diageo faces fine over Whiskey Fungus ‘pollution’

Diageo, the biggest alcoholic drinks producer in the world, could face a fine of thousands of dollars for allegedly failing to control ethanol emissions, also known as angel’s share, at its whiskey distillery in Louisville, Kentucky.

Diageo’s whiskey warehouse in Louisville has been accused of failing to control ethanol emissions

The drinks giant, which produces Bulleit Bourbon, has been handed two notices of violation by the Louisville Air Pollution Control District (APCD), for allowing “the emission of an air pollutant” which “presents a current and continuing threat to public” and failing to prevent a “strong objectionable odour” (alcohol) from affecting its surrounding neighbourhood.

If Diageo does not comply with District regulations, they may be liable to pay up to US$10,000 per violation, per day.

The notice comes after a group of Louisville residents filed a class action case in the US District Court against the distillery in June 2012, among others, claiming uncontrolled ethanol emissions at its whiskey warehouses had caused a ‘plague’ of Baudoinia, a black soot-like fungus that is staining resident’s homes and property.

In a statement, Diageo responded: “We are a longstanding member of the community and take these allegations very seriously. We have requested the incident reports related to the APCD notice and will review them closely.

“As we have stated previously, the appearance of a black substance on some buildings and structures is due to a naturally occurring common mold that is found widely in the environment, including areas not related to whiskey production.”

Whiskey Fungus

Diageo however isn’t the only distillery to be at the centre of the ‘Whiskey Fungus Row’.

Similar class action lawsuits have also been filed by the same attorney, William F. McMurry, against Heaven Hill and Brown-Forman in Louisville in the Jefferson Circuit Court and against Beam and Buffalo Trace Distillery in Frankfort.

McMurry is representing a number of Kentucky residents who claim uncontrolled ethanol emissions from whiskey ageing warehouses in the area have encouraged the ‘whiskey fungus’ to grow on their houses, cars and other property.

McMurry said in a statement on its website: “The Air Pollution Control District’s report outlines the science behind the connection between bourbon production and whiskey fungus and supports the claims we have made on behalf of homeowners across Kentucky. “

While all distilleries involved refute the claims that the substance is in any way linked to their businesses, it is thought such action could set a precedent for other law suits against whisky producers around the world.

Separately, Diageo has just been named as the best performing beverage company in the world for climate change strategy, emissions disclosure and performance by the Carbon Disclosure Project.

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