Dive Brief:
- Sazerac acquired a Kentucky distillery, the company’s latest investment in building out its spirits portfolio.
- The Buffalo Trace owner said Friday the Garrard County Distilling facility in Lancaster, Kentucky, will provide additional production capacity to support growing demand for its spirit brands. The whiskey company reportedly bought the plant during a court ordered auction for about $20 million.
- Last year, Sazerac disclosed plans to spend $1 billion on new and existing facilities to expand spirits production in and around Kentucky.
Dive Insight:
Sazerac has had a busy year, aggressively expanding with new acquisitions and innovations in buzzy categories like ready-to-drink cocktails and soju. The new distillery purchase, however, signifies that though it’s expanding into other segments, it’s not abandoning its original whiskey focus. The company will use the property to service its entire portfolio with production and aging capabilities.
The addition of the Lancaster facility builds on Sazerac’s other investments in Kentucky. Sazerac completed a $1.2 billion expansion project at its Buffalo Trace facility last year and a combined $90 million for its Barton 1792 Distillery and The Glenmore Distillery.
“Even with all the investments we have made to expand, we need more supply to keep up with demand, and the addition of the Lancaster facility gives us valuable distilling capabilities to support that growth,” Sazerac President and CEO Jake Wenz said in a statement
The newly acquired property includes two 20,000-square-foot barrel warehouses and sits on 210 acres of land, according to a company statement. Sazerac plans to use the existing infrastructure to support the company’s “broader production needs,” according to a statement.
The Garrard County Distilling facility opened in 2024 and closed just a year later due to financial difficulties. Sazerac said it intends to hire more workers as the company revives operations at the plant.
“Kentucky has been an important part of Sazerac’s story for many years, and we’re proud to continue investing and growing here,” Wenz said. “Today, nearly 3,000 team members are part of Sazerac’s Kentucky operations, and we’re grateful for the opportunity to continue growing that team.”
