Sazerac Company is planning to inject over $38m in expanding operations at its US facility in New Albany, Indiana, managed by its subsidiary Northwest Ordinance Distilling.

The investment, includes over $35m in new equipment and over $2m in real property improvements, according to a joint statement between Sazerac, Northwest Ordinance Distilling and local economic development firm One Southern Indiana.

The expansion will allow production capacity to increase at the Northwest Ordinance Distilling to increase production capacity at the site, "to meet growing demand for its distilled spirits products".

New Albany city council has approved the investment after it accepted a local property tax abatement.

The project will bring 25 new full-time positions, and will ensure "the continued employment” of the company’s existing 357 team members in New Albany. 

Construction and equipment installation are expected to commence later this year. 

Commenting on the news, Jake Wenz, president and CEO of Sazerac said: “As demand for our products continues to grow, this investment will help us better serve our customers while reinforcing our commitment to the New Albany community.”

Wenz added: “We’re grateful to the city of New Albany and One Southern Indiana for their ongoing partnership and support, which make growth like this possible.” 

Sazerac's Northwest Ordinance Distilling has been operating in New Albany since 2017.

The New Albany site bottles a range of Sazerac's spirits for distribution across the US. According to the group's website, one of those brands is Fireball Cinnamon Whisky.

Lance Allison, president and CEO of One Southern Indiana said: “Sazerac’s continued growth in southern Indiana underscores both their confidence in this community and the region’s long-term strength as a global hub for manufacturing and logistics.

“We’re proud to support this expansion and the quality jobs it brings to southern Indiana.” 

Earlier this month, Sazerac bought local craft distiller Western Son Vodka and Distillery for an undisclosed sum.

Based in Pilot Point, Texas, Western Son produces a range of flavoured vodkas as well as a gin under its namesake brand.

The deal sees Sazerac acquire the entire company, including its employees, production capabilities, assets and brands, Sazerac confirmed to Just Drinks.