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News Alert: Diageo To Build New Kentucky Distillery On $130 Million Investment

December 13, 2018

Diageo has announced that it will invest $130 million over three years in a new Kentucky-based distillery. It will have an initial capacity of approximately 10 million proof gallons.

The new facility will consist of a distillery, dry house, and warehouse in Lebanon, Kentucky, with the capability to distill a variety of Diageo Bourbon and American whiskey brands. The site will supplement the company’s other Kentucky operations: Stitzel-Weller in Louisville, and The Bulleit Distilling Co. in Shelbyville. The latter opened in 2017 on a $115 million investment, and has a capacity of around 1 million cases.

Diageo is investing in its Kentucky operations with a view toward ongoing growth in American whiskey. The company’s flagship Bulleit brand has continued to expand markedly, with its U.S. sales up 10% in the year through June. According to Impact Databank, Bulleit grew from 125,000 cases in the U.S. in 2010 to 1.2 million cases in 2017. The brand is expected to unveil its new $10 million visitor center at its Shelbyville distillery this summer.—Daniel Marsteller

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