LORETTO, Ky. (AP) — The producers of Maker’s Mark bourbon
announced a distillery expansion Thursday to pump up production and
keep pace with growing demand for the Kentucky whiskey, known by its
distinctive bottles sealed in red wax.
The $67 million expansion
comes barely a year after the brand created a backlash by saying it was
cutting the amount of alcohol in each bottle to stretch its whiskey
supplies. Producers quickly scrapped the idea.
The expansion — in
the works well before the watered-down whiskey flap — comes amid strong
sales across the whiskey sector. Bourbon and Tennessee whiskey revenues
rose a projected 10.2 percent last year in the U.S., and exports
surpassed $1 billion for the first time, according to the Distilled
Spirits Council.
Maker’s shipped 1.4 million cases in 2013, up
10.7 percent from the prior year. It forecasts shipments to reach 2
million cases later this decade, after surpassing 1 million cases in
2011.
Bourbon makers in Kentucky, which produces 95 percent of the
world’s supply, have invested more than $300 million in expansions in
the last two years, said Eric Gregory, president of the Kentucky
Distillers’ Association.
In a bow to tradition, the Maker’s
addition will replicate the existing distillery in Loretto, a town about
45 miles south of Louisville where every drop of Maker’s has been
produced. That continuity ensures "the DNA of Maker’s Mark is preserved
as the brand grows," said Maker’s Mark chief operating officer Rob
Samuels, grandson of the brand’s founders.
"This investment is a
continuation of the heritage, tradition and vision for this brand as
Maker’s Mark continues to grow," he said.
It’s the second major
expansion of the Maker’s distillery. The newest update will add a
replica of two existing stills, more fermenters and additional
warehouses to store the whiskey. The addition will boost the
distillery’s production capacity by 50 percent.
Groundbreaking is
planned for next month. The first whiskey coming off the new still will
go into barrels for aging in mid-2015 and will mature, on average,
between six and seven years before being bottled.
The state said the brand’s producers will be eligible for up to $5 million in tax benefits as part of the
project.
"We are very excited that this iconic Kentucky brand continues to grow in popularity," Gov.
Steve Beshear said.
The
expansion comes as the ownership of Maker’s is changing hands. Suntory
Holdings Ltd., a Japanese beverage company, announced a deal in January
to acquire Beam Inc., parent of Jim Beam and Maker’s Mark. The combined
company would have annual sales topping $4.3 billion.
The Beam Inc. board approved the project Wednesday.
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