Kentucky’s aging Bourbon inventory reached 7.5 million barrels, the most since 1972, Kentucky Distillers’ Association said.
The total number of all barrels – including Bourbon, brandy and other spirits – reached 8.1 million, the most since 1971. The tax assessed value also hit a record high – $3 billion – as did the amount of barrel taxes paid by distillers at $23 million.
“More than a billion dollars in investment is scheduled to come online in the next few years, so we hope to hit that mark pretty quickly.”
KDA President Eric Gregory said these figures also could rise with the recent passage of the new “Bourbon without Borders” law that allows distillery visitors to ship souvenir bottles home. “Kentucky’s economy will benefit as more states pass similar reciprocal laws, allowing us to send our signature spirit around the country,” he said.
However, Gregory cautioned that these numbers were reported to the state months before several countries enacted retaliatory tariffs on Bourbon. “We are still working to understand the actual impact of those tariffs, and remain hopeful that it’s a short-term issue that will be resolved soon,” he said.
Amounts include all distilleries in Kentucky compiled from state Department of Revenue data as of Jan. 1, 2018. Founded in 1880, The KDA represents 39 of the state’s distilleries, from legendary, global brands to emerging micro distillers that are building upon centuries of craftsmanship and tradition.
Other key facts form the annual barrel reports include:
— Production in 2017 was 1,715,541 barrels. That’s only the second time since 1968 that distillers filled at least 1.7 million barrels, and it’s an increase of 129,000 barrels produced in 2016.
— The tax-assessed value of $3 billion is the first time ever that barrels have reached that mark, and it’s an increase of $456 million over the previous year.
— Barrel taxes had never reached the $20 million mark before, let alone $23 million. Revenue from this tax funds education, public safety and other needs in local communities where barrels are stored.
— Kentucky Bourbon is one of the Commonwealth’s most historic and treasured industries, a booming $8.5 billion economic and tourism engine that generates as many as 17,500 jobs with an annual payroll topping $800 million and pours $825 million into tax coffers each year.
— Attendance at the KDA’s Kentucky Bourbon Trail and Kentucky Bourbon Trail Craft Tour distilleries has skyrocketed by 314% in the last 10 years. Visitors made more than 1.2 million stops at participating distilleries last year, the second straight year topping that milestone.