Brown-Forman to invest around $95m in facility expansion

Brown-Forman has announced plans for an estimated $95 million expansion of its Shively distillery to meet growing demand for American whiskey.

The expansion project will double the capacity of the Brown-Forman Distillery and is expected to take more than two years to complete. The site, located near Dixie Highway in Kentucky, will be fully operational throughout this period.

The investment includes doubling the number of fermenters at the facility, adding column still capacity and mash cookers, and improving the grain handling and by-products system. In addition, funds will be spent on modernising the workspace and improving on-site traffic flow for safety.

Under the Kentucky Reinvestment Act, the state’s Cabinet for Economic Development has approved Brown-Forman for performance-based tax incentives of up to $5 million.

An additional $500,000 was approved under the Kentucky Enterprise Initiative Act, which allows companies to recoup Kentucky sales and use tax on certain costs.

“The demand for American whiskey worldwide is a result of the craftsmanship and specialness of Kentucky’s signature spirit,” said Alex Alvarez, chief production and sustainability officer at Brown-Forman.

“This expansion will allow us to increase production, improve efficiency and enhance the workspace so we can continue bringing whiskey, made right here in Louisville, Kentucky, to the world.”

As part of the project, the Old Forester brand will create an oak tree nursery on the property for a long-term study of oak tree sustainability. Conducted in partnership with University of Kentucky’s Department of Forestry and Natural Resources, the study is part of Brown-Forman’s efforts “to ensure the future viability of one of the most critical ingredients in bourbon making”.