Stateways Sept-Oct 2014

StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions

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StateWays Q Q September/October 2014 30 acquired by Suntory Holdings Limited to become a force to be reckoned with among the spirits business. Suntory completed its acquisi- tion of shares at the end of April, and Beam was renamed Beam Suntory Inc., creating a company that stands in third position on the global premium spirits market. When Heaven Hill Distilleries an- nounced it was expanding its Bernheim Dis- tillery in Louisville in 2013, it was only the start of expansion projects by key players in the American whiskey and Bourbon indus- try. Beam Suntory, Buffalo Trace, Diageo and Wild Turkey announced investments of their own in 2014, making for a booming Bour- bon business in the state of Kentucky. Wild Turkey's parent Gruppo Campari unveiled a $43 million packaging facility at the Wild Turkey Distillery in Lawrenceburg one year ago. "Since Gruppo Campari purchased Wild Turkey in 2009, it has invested more than $100 million," Floor says. "These fi nancial commitments include a $50 million distillery expansion that more than doubled the plant's production capabilities, a $43 million packaging facility, and new barrel ware- houses." The distillery also opened a new visitor center in April. Diageo kicked off 2014 with an announcement that it would invest an initial $2 million to develop the visitor center at Louisville's Stitzel-Weiler Distillery. The building stores and rests barrels of whiskey, but it hasn't been a functioning distill- ery since 1992. The new visitor center will allow Diageo to celebrate the American craft whiskey movement, as well as showcase the company's popular Bulleit brand and new craft whiskey portfolio. But that's not the only expanding Diageo is doing. The company announced in May that it intends to build a distillery (enough for 750,000 9-liter cases) and six barrel storage warehouses in Shelby County. "Diageo is committed to building the future of American whiskey with the recently-announced $115 million distillery," Briese says. Breaking ground in August, Diageo's investment will expand the company's share of the American whiskey cat- egory while also helping the local economy. The goal is to have the distillery, which will carry the Bulleit name, operational by late 2016. Beam Inc.'s big news for 2014 may have been its acquisition by Suntory, but before that was complete, Beam announced that it would be building a distri- bution center in Franklin County. Spanning 600,000 square feet, the state-of-the-art distribution center will serve Beam's portfolio of distilled spirits brands and is expected to open in the fi rst quarter of 2015. Maker's Mark, which has a rich history in Lo- retto, also announced plans to expand in 2014. In a nearly $70 million project, the Maker's Mark Distillery intends to create a replica of its exist- ing stills, add new barrel warehouses and make other improvements. Sazerac has expansion projects underway, totaling an estimated $70 million, for three of its distilleries to meet Bourbon's projected growth and demand. Buffalo Trace broke ground in April on a new 83,000-square-foot warehouse center. At Glenmore Distillery, Sazerac plans to add a 223,000-square-foot distribution center, as well as adding equip- ment and improving its barrel warehouses. The company plans to purchase additional equipment at the Barton 1792 Distillery that will increase its production capacity. Kentucky's Bardstown, the offi cial trailhead of the Kentucky Bourbon Trail, is already known as the Bourbon capital of the world. Visitors fl ock to the Nelson County distilleries, which include Heaven Hill, Jim Beam, and Maker's Mark. By 2016 they'll have another to add to their trailblazing. The Bardstown Bourbon Company an- (Thousands 9-Liter Cases) 12/13 Brand Supplier 2012 2013 % Chg Jack Daniel's Brown-Forman Beverages 1,066,570 1,046,158 -1.9% Jim Beam Beam Inc. 730,970 741,328 1.4% Evan Williams Heaven Hill Distilleries 426,618 456,090 6.9% Maker's Mark Beam Inc. 235,001 245,783 4.6% Old Crow Beam Inc. 169,986 181,224 6.6% Wild Turkey Campari America USA 148,736 153,343 3.1% Early Times Brown-Forman Beverages 110,828 110,587 -0.2% Ancient Age Sazerac 111,285 106,206 -4.6% Ten High Sazerac 101,992 101,738 -0.2% Ezra Brooks Luxco 89,060 95,413 7.1% Top Ten Leading Brands 3,191,046 3,237,870 1.5% Source: The Beverage Information & Insights Group from NABCA data. To learn more go to Leading Brands of Straight Whiskey in the Control States Buffalo Trace Double Barreled Bulleit Rye

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