Sazerac, a prominent spirits company, is making a significant investment of over $1 billion in new and existing facilities. This expansion of production comes at a time when premium spirits are showing more resilience compared to other alcohol categories, despite a decline in overall alcohol consumption.
The company, known for brands like Fireball and Buffalo Trace, is allocating $1 billion for the construction of new barrel aging warehouses in Campbellsville, Kentucky. This project, which is expected to create at least 50 jobs, involves acquiring property and seeking tax incentives from the state.
Additionally, Sazerac is enhancing its operations in New Albany, Indiana, a suburb of Louisville, Kentucky. With a $38 million investment in equipment and property improvements at the New Albany facility, the company aims to meet the growing demand for its products and create 25 new jobs.
CEO Jake Wenz highlighted the need for this expansion to keep pace with the increasing demand for Sazerac’s distilled products. While the overall alcohol market has seen a decline, categories like U.S. whiskey and tequila are showing promising growth prospects, according to industry data.
Sazerac has been actively expanding its portfolio, recently acquiring Western Son Vodka and introducing new ready-to-drink brands. The company’s strategic acquisitions, including the purchase of the Svedka vodka brand from Constellation Brands, reflect its commitment to growth and innovation in the spirits industry.