A publication of the Kentucky Center for Public Service Journalism

Luxco Breaks Ground on Bardstown Distillery; $30 million facility expected to create 34 jobs

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Gov. Matt Bevin joined local officials and executives from Luxco, a distilled spirits company, in breaking ground on an approximately $30 million distillery in Bardstown that will create 34 full-time jobs.

“As the world’s undisputed bourbon capital, Kentucky welcomes the addition of Luxco’s distillery to our thriving and proud tradition,” Gov. Bevin said. “Ideally situated, we know Luxco will find itself right at home among the distinguished members of the Commonwealth’s bourbon industry. Locating in Bardstown will present Luxco and its visitors with opportunities they wouldn’t find elsewhere.”

LuxcoConstruction of Luxco’s first stand-alone, wholly-owned distillery marks a significant milestone in the company’s history. Luxco currently contract-distills its bourbon brands – Rebel Yell, Ezra Brooks and Blood Oath – through relationships with other distilleries.

This new facility will give Luxco 100 percent control of quality and production volume of its bourbon. With its ideal location in Bardstown and picturesque setting, Luxco hopes to establish the distillery as a premier destination on the Kentucky Bourbon Trail. The distillery gives Luxco a well-defined place around which to center its brands’ heritage, a critical element in attracting bourbon consumers searching for authentic products and experiences.

“We are looking forward to building the distillery on this scenic property and in such a central location in Bardstown,” said David Bratcher, president and COO of Luxco. “We intend the distillery to be a welcoming stop for those visiting the Kentucky Bourbon Trail and we are excited to bring our bourbon experience and brands to Nelson County.”

The campus will include an 18,000-square-foot distillery and visitors’ center with a tasting room and event space. Additionally, Luxco will construct up to six barrel warehouses on its 70-acre site off State Highway 245. Construction will begin in the coming weeks with completion planned by late 2017.

Bratcher

Bratcher

Founded in St. Louis, Mo. in 1958 by David Sherman Sr. and Paul A. Lux, under the name David Sherman Corp., Luxco produces, imports and markets within the spirits industry. The Lux family continues to own and operate the company and in 2006 changed the name to Luxco.

In addition to its bourbons, the company’s products include Juarez Tequila and Triple Sec, Pearl Vodka, Everclear Grain Alcohol, Arrow Cordials, are among more than 170 labels in the company’s beverage portfolio.

Manufacturing, packaging, marketing and distribution take place at the company facilities in St. Louis, Cleveland and Cincinnati.

Sen. Jimmy Higdon, of Lebanon, said Luxco will be a good fit in Nelson County with the region’s strong distilling presence.

Bardstown Mayor John Royalty said the city looks forward to adding to its growing list of local distilleries.

“Bardstown is proud to add yet another distillery to our bourbon family,” said Mayor Royalty. “We thank Luxco for their decision to locate in the heart of bourbon country, and we look forward to celebrating years of success with them.”

To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved the company for tax incentives up to $1 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.

“We are pleased with the support we have received from the Kentucky Economic Development Cabinet, the Nelson County Economic Development Agency and city and county government officials,” added Luxco Chairman Donn Lux.
Additionally, KEDFA approved Luxco for up to $300,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.

For more information on Luxco, click here .

Office of Gov. Matt Bevin

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