Who We Are

Kentucky is the birthplace of Bourbon, crafting 95 percent of the world’s supply. Only the Bluegrass State has the perfect natural mix of climate, conditions and pure limestone water necessary for producing the world’s greatest Bourbon.

Kentucky has 68 distilleries as of 2018 – up 250% in the last decade. That’s 32 counties with at least one distillery – we only had 8 in 2009.

Bourbon is America’s only native spirit, as declared by Congress in 1964. It must be made with a minimum of 51 percent corn, aged in charred new oak barrels, stored at no more than 125 proof and bottled no less than 80 proof.

The KDA, a non-profit trade group founded in 1880, represents 40 member companies for the first time since Prohibition as its ranks have swelled with new distilleries, strengthening Kentucky’s rightful place as the one, true, authentic home for Bourbon and spirits.

Industry & Jobs

Bourbon is an $8.6 billion signature industry in Kentucky, generating 20,100 jobs with an annual payroll of $1 billion.

Bourbon is an $8.6 billion signature industry in Kentucky, generating 20,100 jobs with an annual payroll of $1 billion. Kentucky holds more than a third of all distilling jobs in the U.S., boasting an average salary of $95,000 – up 23% since 2009.

For every distilling job, three more are created down the line – only light trucks and utility vehicles have more jobs and a higher multiplier.

Distilling ranks higher then all but one of the 532 Kentucky industries in the state’s share of national employment and manufacturing output.

Kentucky is on pace for record growth by 2020 – more than 24,000 people will owe their paychecks to the distilling industry for a total payroll of $1.2 billion annually and $10 billion in economic output.

Capital Investments

More than $2.3 billion in capital projects has been completed or is planned and underway by 2022, including new distilleries and aging warehouses to bottling facilities and tourism centers.

The next amber waive of investments will create 1,800 new jobs, $70 million in payroll, and $8.4 million in tax revenue.

Production

Kentucky’s iconic Bourbon distilleries filled a whopping 1.7 million barrels of amber nectar last year, the highest it’s been since 1972.

Bourbon production has increased more than 115 percent in the last five years with premium small batch and single barrel brands driving the Bourbon renaissance.

That gives the Commonwealth a total inventory of 8.1 million barrels of Bourbon and other spirits (7.5 million barrels of Bourbon) – that’s the highest inventory in more than 40 years.

With 4.3 million people, there are now almost two barrels for every person living in Kentucky.

Taxes

Spirits production and consumption pours more than $235 million in state and local tax coffers every year.

The 2018 tax-assessed value of all barrels aging in Kentucky is $3 billion – an increase of $456 million over the previous year – more than triple the value in the past decade.

Distillers paid more than $23 million in state and local barrel taxes alone in 2018 – a new record. Revenue funds local schools, libraries, and public safety.

Bourbon is revolutionizing Kentucky tourism and pouring much-needed revenue into local communities. Kentucky Bourbon Trail® visitors spend between $400 and $1,200 on average during their trip. More than 70% of visitors are from outside Kentucky.

Kentucky taxes Bourbon and spirits highest among all 532 manufacturing industries in the state. Nearly 60% of every bottle goes to taxes or fees, with seven different taxes on Bourbon – including an ad valorem tax each and every year on aging barrels. Kentucky’s spirits’ excise and wholesale tax rate is fifth highest in the country. 28% of every dollar goes to taxes – beer pays 13%, wine pays 3%.

Tennessee – second to Kentucky in whiskey production nationally – taxes spirits at half the rate as Kentucky.

Exports

Kentucky exported over $450 million of whiskey in 2017 – an export value which has has tripled in the past 20 years. EU countries make up nearly half of Kentucky’s whiskey exports.

Tourism

Bourbon tourists made a record 1.4 millions stops to Kentucky distilleries in 2018.

In 2018 the Kentucky Bourbon Trail attracted 1 million visits for the first time since it’s creation in 1999, and the Kentucky Bourbon Trail Craft Tour distilleries hosted 340,000 visits – another personal record. That’s a 370% increase in attendance over the last 10 years.

Kentucky Farms

Kentucky sourced grains aid family farmers – KDA distillers bought more than 9 million bushels of corn and other grains in 2017 from Kentucky farmers. That’s over half of all distillery corn purchases. (9 bushels of corn + 3 bushels of other grains = 1 barrel of Bourbon)

Responsibility

Our distillers are committed to growing responsibly. In the last year, they have delivered over 3,700 free rides to reduce impaired driving with Lyft and prevented underage access to alcohol by catching 250 fake IDs at their distilleries with Intellicheck.

To view our full library of past Economic Impact Studies, see below.