Study Shows More Distillers, Jobs, Investment – and Competition
Kentucky Bourbon is expanding its status as a premier signature industry, now pouring $9 billion into the Bluegrass economy every year and generating more than 22,500 jobs with $1.23 billion in payroll.
Distilling also contributes more than $285 million in local and state tax revenue and is in the middle of a massive $5.2 billion capital investment spree that is creating more good-paying jobs and opportunities for supply chain partners, farmers, communities and tourism than ever before.
Kentucky crafts 95% of the world’s Bourbon. Distilleries, jobs, wages, revenue and investment are up triple digits across the board in the last 12 years. In turn, this amber wave has spurred more corn production, barrel cooperages and other supply-side manufacturers that are sustaining families and adding vibrancy to local communities.
The news comes from the biennial report conducted by noted economist Dr. Paul Coomes and commissioned by the non-profit Kentucky Distillers’ Association trade group. This is the sixth report since 2009 that charts growth and challenges facing Bourbon and distilled spirits.
KDA President Eric Gregory said the study highlights how the industry has effectively transformed itself into a global and economic powerhouse over the past 12 years. “Leadership, partnership and a focused mission on working together and growing the pie,” he said.
That has included promoting Kentucky as the gold standard for distilling, research and responsibility; expanding the popular Kentucky Bourbon Trail® tourism attraction; welcoming and mentoring craft distillers as the next generation; and working with elected officials to modernize alcohol laws and remove barriers to growth.
The study notes there are now more than 2,200 distilleries in the U.S. due to the booming craft movement. That has slashed Kentucky’s share of distilleries nationwide from 24% to 6%, and jobs from 43% to 30%. Ten states have more licensed distillery operations than Kentucky.
“Bourbon is a great investment for Kentucky, and this study proves that,” Gregory said. “But more than 2,000 distilleries have made the decision not to locate in Kentucky, despite our rich traditions and ready-made infrastructure.
“It is critical that distillers, partners and elected officials continue to work together to eliminate artificial and unnecessary barriers to growth. Doing so will attract more distillers and investment to the Commonwealth. Our economic future is in our hands.”
The study’s major highlights include:
$9 billion in economic output every year
More than 22,500 jobs, up 83% in last 20 years
$1.23 billion in payroll, up 250% in last 20 years
Average salary of $101,567 – the first time that amount has exceeded $100,000
KDA distillers bought 17 million bushels of corn in 2020, with 75% coming from Kentucky farmers
Corn production has tripled in many Kentucky counties where distillers are located
All-time record of 10.3 million aging barrels of Bourbon, the first time over 10 million
Bourbon production – number of barrels filled each year – is up 435% since 1999
Kentucky distillers filled a record 2.4 million barrels in 2020
$5.2 billion in capital projects completed or planned by 2025, including more than $100 million to build or expand Kentucky Bourbon Trail® experiences
Investments between 2021-2025 will create 4,565 new jobs, $258 million in payroll and $29 million in tax revenue
Distilling has the highest job spin-off factor among top 20 Kentucky manufacturers by employees; for every distilling job, three more are created
Value of distillers’ real and tangible property has quadrupled in last 12 years to $1.49 billion
Kentucky continues to tax distilling higher than all other large industries in the Commonwealth.
Distilling production and consumption generates $286 million in local and state tax revenue annually. That’s $179 million more tax revenue a year versus 12 years ago.
Kentucky has the fifth-highest Bourbon and spirits tax rate in the country, and the state’s distillers by far pay more in federal alcohol tax – $1.8 billion – than any other state
The KDA’s Kentucky Bourbon Trail® and Kentucky Bourbon Trail Craft Tour® experiences continue their rapid rebound from COVID and closures, up 160% in total attendance from last year and just down slightly from pre-pandemic record in 2019.
In Franklin County the bourbon industry provides more than 1,000 jobs with annual payroll of more than $55M and has invested more than $23M in local projects in the last 5 years.
VIEW THE FULL 2021 REPORT HERE.
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