New $350m distillery to ‘reshape’ contract whiskey market

The team behind Bardstown Bourbon Company has pledged more than US$350 million over the next 10 years to build a new distillery for contract whiskey production in the US.

Located in Kentucky, Whiskey House will be the ‘first’ distillery designed from scratch to focus entirely on large-scale, flexible, contract whiskey production.

The project is the brainchild of David Mandell, John Hargrove and Daniel Linde, founders of Kentucky’s Bardstown Bourbon Company.

The new site, located on a 176-acre campus in the TJ Patterson Industrial Park in Hardin County, is scheduled to begin operating on 1 July 2024.

The founders said the new distillery would be the ‘most sophisticated, technically advanced producer’ of custom Bourbon and American whiskey in the US.

Mandell, who serves as CEO, said the development would “reshape the contract whiskey market” in the US.

“As the Bourbon market continues to grow, we see the need for additional distilling capacity and more customer focused solutions,” he continued.

“We will provide the highest-quality production, guaranteed capacity, and exceptional customer service for our brand partners.”

The project will include 16, 41,500-barrel traditional rickhouses, a 50,000-square-foot palletised warehouse, a spent grain processing facility, a bottling facility, a rail system, as well as access to one of the highest yielding hydro stratigraphic limestone aquifers in the region, located 120 feet below the property.

The site will include a 48-inch custom still and 14, 33,000-gallon closed-top fermenters.

The company will initially make more than seven million proof gallons annually (112,000 barrels), with the aim of doubling production by 2027.

‘High bar’

“Whiskey House sets a high bar for advanced manufacturing in the whiskey industry,” said Hargrove, president and chief operating officer.

“We’re making major investments in the technological capabilities of the distillery that will immediately make Whiskey House the most advanced contract whiskey production facility in the United States.”

The site will also incorporate artificial intelligence applications, enabling it to improve quality and efficiency, increase production yields, expand sustainability initiatives, and provide real-time information to customers about their liquid.

“For the first time, our customers will have access to every data point about their whiskey from start to finish,” explained engineering and technology vice-president Roger Henley.

“Not only will this information enable brands to create more innovative products and share more compelling stories about their whiskies, but it will also help optimise their businesses with critical financial, inventory, and quality reports.”

The site will hire approximately 50 workers next year, expanding to more than 100 by 2027.