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Diageo Breaks Ground On $130 Million Kentucky Distillery

July 18, 2019

Diageo has broken ground on its new $130 million distillery in Lebanon, Kentucky, and revealed more details on the project.

To be known as the Diageo Lebanon Distillery, plans call for a 72,000-square-foot distillery and dry house, as well as 12 barrel warehouses. The facility is expected to be fully operational in 2021.

Originally announced in December, the distillery will sit on a 144-acre site property at “100 Bourbon Drive” and produce a variety of Diageo Bourbon and American whiskey brands, with annual capacity of approximately 10 million proof gallons. The facility will supplement the company’s other Kentucky operations: Stitzel-Weller in Louisville, and The Bulleit Distilling Company and Visitor Experience in Shelbyville.

Overall, Diageo has invested more than $300 million in its Kentucky operations since 2014, as it looks to meet soaring demand for American whiskies. The company’s flagship Bulleit brand has continued to expand markedly, with U.S. volume up 10% to 1.34 million cases last year (including rye), according to Impact Databank.—Daniel Marsteller

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