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The Sazerac Co presses ahead with Buffalo Trace expansion

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The Sazerac Co has released an update on its Buffalo Trace distillery expansion project, as it works to keep up with demand for Bourbon. 

Sazeracs new Buffalo Trace warehouses will hold a combined 200,000 barrels

Sazerac's new Buffalo Trace warehouses will hold a combined 200,000 barrels

The firm said yesterday that the US$200m plan - announced last year - includes the conversion of two former office buildings back into barrel warehouses. Warehouses R and S are being filled with barrels while T and U were completed last year. The two buildings hold a combined 200,000 barrels. 

Sazerac has also broken ground on a new warehouse - to be built along with several more on a 200-acre stretch of farmland. The first warehouse, which will house 55,000 barrels, will be completed by the end of the year. 

"A new warehouse will be built every four months for the next several years," the firm said. "These new warehouses will each cost about $7m to build and another $21m to fill with barrels, making this expansion a significant investment."

As part of the plan, Sazerac will move its bottling operations to its old distribution centre. The move is expected to completed by the end of 2018.  

The distillery will also receive larger cookers and additional fermenters. The company said Bourbon production is scheduled to run 24 hours a day, seven days a week over the summer. "This year we plan to match the all-time high of barrel production here at Buffalo Trace, set in 1973," said Harlen Wheatley, master distiller. "Next year we'll exceed that and set new production records."

Sazerac stressed that current Bourbon inventory remains tight and allocation would continue. 

"While we have steadily increased Bourbon production over the years, demand for our brands continues to outpace supply," said Kris Comstock, senior marketing director. "Growth will be modest over the next few years, dictated by the number of barrels filled years ago. Most will be sold in the United States, where demand continues to rise."

How much longer can US whiskey maintain its stellar growth? - Comment


Sectors: Spirits

Companies: Sazerac Co

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