‘Stronger Than Ever’: Gov. Andy Beshear and US Legislators Toast Kentucky’s $9 Billion Bourbon Boom
Kentucky Gov. Andy Beshear shared the positive economic impacts of the bourbon industry — including $9 billion economic output — after a report was released. (AP Photo/Bruce Schreiner)
On Wednesday, the Kentucky Distillers’ Association shared that elected officials such as Kentucky Gov. Andy Beshear had much to celebrate after a report highlighting the positive economic impact of the bourbon industry was released. The report shared that a whopping $9 billion in revenue is generated for Kentucky’s economy by the bourbon industry each year.
“Kentucky’s economy is booming, and the bourbon industry is helping us build a strong economy for generations to come,” Beshear said in a news release. “Today, this signature industry is generating $9 billion in total economic impact, with more on the way. We thank our distilleries for working hard to create more good jobs and boosting our tourism industry across the Commonwealth.”
The report was completed by Dr. Paul Coomes and featured data from 42 counties and 100 distilleries. The findings revealed a growth of 23,100 jobs and $1.63 billion in wages. The report also cited $3.5 billion worth of investments due to bourbon-related tourism.
Coomes’ report demonstrated the agrarian benefits to the state, citing that 70% of the corn used in Kentucky bourbon mashbills was purchased from local Kentucky farms.
A group of elected officials shared the news: including the governor, Senate President Robert Stivers, Agriculture Commissioner Jonathan Shell and House Speaker David Osborne.
“Not only is Bourbon building Kentucky communities, but it’s also elevating Kentucky’s stature internationally as exports grow and distillers across the globe look to Kentucky for how to do it right,” 2024 Kentucky Distillers’ Association Chair and General Counsel/Chief Compliance Officer at Heaven Hill Jessica Pendergrass expressed.
Yet, the industry still faces struggles. In December, it was revealed that distillers paid barrel taxes of more than $50 million in 2023. These taxes increased approximately 30% over last year and many bourbon businesses believe they have punitive repercussions on distillers.
House Bill 5, a bipartisan initiative that was signed into law in early 2023, promises to phase out these barrel taxes over the next two decades. Though the bill has led to some conflict, as other elected officials believe the tax burden will now shift to their constituents, bourbon producers believe the benefits will outweigh the costs.
“Kentucky’s Bourbon economy is stronger than ever thanks to the dedication of our elected officials to update archaic laws that were forcing distillers to look elsewhere and the men and women who work in the industry every day,” Kentucky Distillers’ Association President Eric Gregory said. “With modern alcohol laws now in place, the signature industry helps build a stronger Kentucky.”
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