Sazerac is investing more than $1 billion in new and existing facilities, expanding production as premium spirits remain more resilient than other alcohol counterparts despite declining alcohol consumption.
The Fireball and Buffalo Trace owner is investing $1 billion for new barrel aging warehouses in Campbellsville, Kentucky. Sazerac acquired property and sought tax incentives from the state for the new project in August, according to public records and a Sazerac spokesperson. The facility is expected to create at least 50 jobs.
The spokesperson didn’t provide additional details on the project, but said it was part of the company’s “long-term vision for sustained, strategic growth.”
The spirits company is also expanding its operations in New Albany, Indiana – a suburb of Louisville, Kentucky, one of its headquarter cities. Sazerac is investing $38 million in equipment and property improvements at its New Albany facility, which it uses as a bottling plant for some of its top brands.
Construction and installation are expected to begin later this year, according to a press release from One Southern Indiana, the region’s chamber of commerce. The expansion will create 25 new jobs.
The Indiana investment was made to keep up with demand for Sazerac’s distilled products, CEO Jake Wenz said in the release. While the overall alcohol market has declined, distilled spirits such as U.S. whiskey and tequila are poised for growth, according to IWSR data.
Sazerac, a privately held company, has recently expanded its portfolio. Earlier this year, it acquired Western Son Vodka and has added several ready-to-drink brands. Last December, Sazerac announced it was buying the Svedka vodka brand from Corona maker Constellation Brands.
