Few press conferences can attract such an impressive showing of industry heads and state officials from both sides of the aisle — from the governor to top legislative leaders across the board — and boost everyone's spirits, so to speak.
But bourbon does the trick.
Kentucky Distillers Association President Eric Gregory unveiled the newest numbers, saying, "Kentucky bourbon is a $9 billion dollar economic and tourism powerhouse for our commonwealth, now generating more jobs, more payroll, more tax revenue, more tourists, and more distilleries in more Kentucky counties than ever before."
A few more data points: Distillers produced a record 2.7 million barrels in 2023, bringing the total inventory to 12.6 million at 100 licensed facilities across 42 counties.
Last year, a compromise bill was passed that would slowly phase out the bourbon barrel tax starting in 2026, with the goal of eliminating it by 2039. The move raised concerns about tax revenue which helps fund local governments, schools, roads, and emergency services.
The bourbon industry also recently dodged a bullet overseas as negotiators managed to head off a looming EU tariff increase.
All good news for the industry, but challenges remain. Gregory points to sustainability, specifically making sure White Oak — which is used to make barrels for aging bourbon — stays viable as oak seedlings are failing to grow into larger trees.
"We're working with the University of Kentucky and Maker's Mark has helped lead the way in actually plotting the genome of oak to try to create a more resilient, faster-growing species," Gregory said, noting trade and taxes are always on the industry's radar as well.
On the question of when the bourbon bubble might burst, Gregory said everything is cyclical but for now the industry remains on an upward trajectory.
