Louisville’s Sazerac Company is set to invest $600 million to build 20 barrel warehouses and expand Robinson Stave and Cumberland Cooperage in London, Kentucky.
The plan aims to create up to 50 full-time jobs.
“This is a significant investment in Kentucky by Sazerac as our signature bourbon industry continues to grow at an incredible rate,” said Kentucky Gov. Andy Beshear recently in a prepared statement. “I am so glad to see this job creation in Southeastern Kentucky, as well as the growth of a company that has invested so much in the commonwealth over the past 25 years.”
The Sazerac Co. will acquire the 198-acre Rowland Acres Industrial Park from the London-Laurel County Economic Development Authority, and use the land to build the 20 new barrel storage warehouses.
The project will also see the 72,000-square-foot expansion of Robinson Stave and Cumberland Cooperage, which Sazerac acquired in 2014. This will increase production capacity for barrels used to store the company’s aging whiskies.
Work on the project is expected to begin this month, with the first seven barrel warehouses expected to be completed in the spring of 2025.
Sazerac’s total investment to date in Kentucky includes about $1.2 billion invested at Buffalo Trace Distillery, the company’s primary distillery, located in Frankfort. The company also has the Barton 1792 Distillery in Bardstown, The Glenmore Distillery in Owensboro, and its headquarters in Jefferson County.
Mark Brown, Sazerac president and CEO, said they’ve invested in London-Laurel County “because we know the residents are hardworking Kentuckians who take pride in their craft. Our construction of new barrel storage warehouses and expansion of our barrel cooperage operations will allow for the continued growth of Kentucky’s signature bourbon industry.”
Sazerac is an American, family-owned, producer and marketer of distilled spirits headquartered in Louisville. Founded in 1850, Sazerac maintains eight major facilities in the United States and currently employs around 4,700 people across all U.S. operations.
As part of this investment deal, the Kentucky Economic Development Finance Authority in October preliminarily approved a 15-year incentive agreement with Sazerac under the Kentucky Business Investment program.
The performance-based agreement can provide up to $2 million in tax incentives based on the company’s investment and annual targets of:
- Creation and maintenance of 50 Kentucky-resident, full-time jobs across 15 years;
- Paying an average hourly wage of $28.27, including benefits across those jobs.
Also, Sazerac will see up to $1 million in tax incentives through the Kentucky Enterprise Initiative Act that allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.
For more information on the company or the deal, check out www.sazerac.com.