Brown-Forman to turn $12m mill into barrel factory

Jack Daniel’s owner Brown-Forman is investing US$12 million to acquire and renovate an Indiana mill to expand its Bourbon barrel production.

Brown-Forman is investing US$12m into expanding its Bourbon barrel production operations

The 15,000sqft lumber mill will be transformed to create staves and heading pieces for barrels, which will then be assembled at a separate site.

Brown-Forman’s expansion is expected to generate up to 50 new jobs by 2017.

“As the Brown-Forman whiskey portfolio expands, we continue to look for new outlets for increased capacity,” said Greg Roshkowski, vice president and general manager of Brown-Forman Cooperages.

“We’re excited to develop operations in a new region as this new mill in Indiana will provide the materials we need to continue to grow the Brown-Forman brand.”

The Indiana Economic Development Corporation offered Brown-Forman up to US$350,000 in conditional tax credits based on the firm’s job creation plans.

These will be performance-based credits and the drinks group will not be able to claim incentives until workers are hired.

“Indiana’s recognition as the best state in the Midwest for business is more significant than a title,” said Victor Smith, Indiana secretary of commerce. “Brown-Forman’s expansion across state lines is evidence that our efforts to lower taxes and reduce regulations are producing tangible results, attracting new investments and new companies to the Hoosier State.”

Earlier this month, Brown-Forman completed the purchase of a Louisville property that will be renovated into its new Old Forester Distillery.