Pernod Ricard has announced plans to spend US$250m on a new production and maturation facility for the Jefferson’s Bourbon brand in Kentucky’s Marion County.
The group, which inherited Jefferson’s following its then-$223m acquisition three years ago of parent Castle Brands, said today the investment will also go towards a visitor centre while allowing the brand to “control [its own] destiny”. With a proposed annual capacity of 7.5m proof gallons, the distillery is expected to come online in 2025.
“For the last 25 years we have been sourcing, contract distilling and – through Kentucky Artisan Distillery – distilling ourselves,” said Trey Zoeller, who founded Jefferson’s with his father in 1997 and remains on board as chief strategist. “It is now time for us to take more control of our destiny.”
In today’s statement, Pernod Ricard was keen to emphasise the carbon-neutral status of the proposed project, which will use electric-powered boilers that will “enable the distillery to not use fossil fuels during Bourbon production”.
When contacted by Global Drinks Intel, a group spokesperson said the brand’s annual volumes total “just under” 300,000 nine-litre cases, with sales coming “almost exclusively” from the US. Jefferson’s portfolio is priced between $45 and $70 per unit.
The brand owner has been active in the US strengthening its operations in American whiskey: In July, Pernod Ricard’s US division set up ‘The American Whiskey Collective’, a business unit that will oversee the Rabbit Hole, Smooth Ambler and TX brands as well as Jefferson’s.
According to the Distilled Spirits Council of the US, the 'super-premium' end of the segment is exhibiting the strongest growth in the country: Volumes between 2017 and 2021 hit a compound annual growth rate (CAGR) of 14.1%, compared to 3.8% for ‘high-end premium’ and 5.7% for ‘premium’.
Overall, American whiskey is at a five-year CAGR of 5.1% in the US.
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