FRANKFORT, Ky. (WDRB) -- Buffalo Trace Distillery is moving  ahead with a $200 million expansion announced last year. 

The bourbon distillery near Frankfort is building new barrel warehouses and relocating its bottling operation to make room for more cookers and fermenters.  Two office buildings are also being converted back into warehouses that will hold a combined 200,000 barrels of aging whiskey to meet demand. 

Construction is underway on new warehouses are being built on 200 acres of farmland the company purchased a few years ago. This is the first time since 1951 that the company has added warehouses. The first of the warehouses will be finished by the end of the year. It will hold more than 55,000 barrels of bourbon.  Plans call for new $7 million warehouses to be built every four months for the next several years. 

The company is planning for the future by moving and expanding its bottling operation in the former Distribution Center by the end of 2018.  Production this summer is already running 24 hours a day and 7 days a week. But there is a still a shortage for Buffalo Trace's flagship bourbon. 

Buffalo Trace projections show their bourbon shortage will continue for a few years, as demand continues to increase. They plan to continue to make monthly allocations of their brands to each state. But the company stresses that the shortage is for their brands and not the bourbon industry. 

The Buffalo Trace Distillery dates back to 1773 and is on the National Register of Historic Places.  Among the brands produced by the Franklin County, Kentucky company are Pappy Van Winkle, Eagle Rare, Stagg Jr., Elmer T. Lee, W. L. Weller and Blanton's single barrel. 

Copyright 2017 WDRB Media. All Rights Reserved.