Kentucky bourbon industry created $9 billion of economic impact in 2023

LOUISVILLE, Ky. (WDRB) -- Kentucky's bourbon industry created $9 billion of economic impact last year.

The Kentucky Distillers' Association shared record-breaking numbers from a new study examining the state's bourbon industry on Tuesday in Frankfort. Dr. Paul Coomes led the report that studied the bourbon industry's impact on local, state and global economies.

"Kentucky’s economy is booming, and the Bourbon industry is helping us build a strong economy for generations to come," Gov. Andy Beshear said in a news release. "Today, this signature industry is generating $9 billion in total economic impact, with more on the way. We thank our distilleries for working hard to create more good jobs and boosting our tourism industry across the Commonwealth."

According to the study, the state's bourbon industry provides more jobs, pays more taxes and attracts more tourists than ever before.

The bourbon industry has created more than 23,100 jobs and commands a payroll of $1.63 billion. The state also collects $357 million in taxes.

"Kentucky’s Bourbon economy is stronger than ever thanks to the dedication of our elected officials to update archaic alcohol laws that were forcing distillers to look elsewhere and the men and women who work in the industry every day," Eric Gregory, president of Kentucky Distillers' Association, said in a news release. "With modern alcohol laws now in place, the signature industry continues to help build a stronger Kentucky."

The bourbon industry has received $5.4 billion in capital investment as well.

"This report proudly supports and underscores not only the economic contribution of this industry to Kentucky but also reflects the generations of dedication to crafting the world's best bourbon and distilled spirits around the country and around the world," said Jessica Pendergrass, Kentucky Distillers' Association chair.

The Bourbon Economic Impact Report used data from 100 distilleries in 42 counties. Kentucky distillers shipped more than $500 million in exports in 2022, almost all of which was bourbon.

Some of the economic impact have helped Louisville and the surrounding areas bring in tourists.

"We all work together and we all know that we're one big team and of course we are very competitive about our brands, but we encourage you if we can't fit you in to visit another distillery," said Dee Ford, Angel's Envy Brand Home General Manager.

Agriculture also plays a role in the industry, with 70% of all distillery purchases being corn. In 2022, a record 2.7 million barrels were produced. It was the fifth year in a row that number was more than two million.

"Areas of this state that have a hard time with economic development and a hard time with gaining jobs and recruitment, this is an area in which they are able to help them with their local economies," Jonathan Shell, Kentucky's Agriculture Commissioner, said.

To read the full summary, click here.

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