Kentucky Bourbon pours $9 billion into the Kentucky economy every year and generates more than 22,500 jobs with $1.23 billion in payroll, according to a new study for the Kentucky Distillers Association said.
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.
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.
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.