Diageo to complete Bourbon distillery in 2016

Diageo has confirmed that its new US$115 million Bourbon distillery in Shelby County, Kentucky, is on track to be completed by the end of next year.

The drinks group first broke ground on The Bulleit Distilling Co. in August 2014, revealing it would have an annual capacity to produce 750,000 nine-litre cases of its flagship Bulleit brand, along other “future” North American whiskeys.

The 300-acre site will also consist of six maturation warehouses with capacity for 55,000 barrels each.

At the time plans for the new distillery were first announced, Tom Bulleit, founder of Bulleit Bourbon, said: “When I walked away from my career as a lawyer to revive my great, great grandfather’s high-rye Bourbon recipe, people thought I was crazy.

“Twenty-seven years into this entrepreneurial journey, it’s humbling to know this amazing facility right here in Kentucky will bear my family’s name. It’s an honour I’m not sure I will ever fully be able to describe.”

Approximately 150 people are currently working on constructing the distillery, which will employ around 30 people once completed.

The Spirits Business reported last year that Diageo would be making American whiskey a major focus as it works to increase its share of the market with Bulleit, George Dickel, the Orphan Barrel whiskey programme and additional “future” brands.

The drive behind the category comes as analysts warned Diageo its focus on “highly competitive” vodka brands rather than American whiskey could lead to “continued share losses”

In its full-year financial results for 2014/15, Diageo said its orth American whiskey – including the Crown Royal and Bulleit Bourbon brands – had grown sales by15%.