By JORDAN STRICKLER

Kentucky Correspondent

FRANKFORT, Ky. — According to a new study by the Kentucky Distillers Assoc. (KDA), the bourbon industry has doubled the economic impact to the Bluegrass State in the past 10 years.

The 64-page report states the industry’s expansion has poured $8.6 billion into the state’s economy over that time, a 60 percent increase from 2009. Additionally, in that period, the state has more than tripled the number of bourbon distilleries from 19 to 68 and quadrupled the number of counties housing distilleries to 32.

“What a monumental success story,” said KDA President Eric Gregory. “We have transformed Kentucky Bourbon from an industry once viewed as ‘sin’ to one that truly defines signature impact, expansion and global image.”

According to the KDA, distilleries in 2018 saw just shy of 1.4 million visitors, and there are now nearly two barrels of spirits for every person in the Commonwealth – valued at $3 billion, three times more than 2009.

According to the report, the state’s bourbon industry generates $235 million in local and state tax revenue while producing 20,100 jobs for an annual payroll exceeding $1 billion. This is a 104 percent increase in the past 10 years with 2,600 jobs added since 2016. If the industry continues to grow at this rate, the KDA believes its economic output will exceed $10 billion by next year, while employing more than 24,000 workers with a payroll of over $1.2 billion.

“It’s not just an industry sector that is succeeding,” said Dave Adkisson, President and CEO of the Kentucky Chamber of Commerce. “It’s additional jobs for Kentucky families, additional income for tens of thousands, and additional tax revenue that will benefit schools and other services that serve all Kentuckians. This is a win for all of us.”

Association members credit part of the growth to legislative changes made in the past few years, including revisions which now enable distilleries to serve spirits by the glass as well as the ability to receive income credits on taxes levied against aging whiskey barrels.

“The tremendous economic expansion of Bourbon is testament to what a true signature industry means for this state,” says Kentucky Senate President Robert Stivers, who led the charge in 2014 against barrel taxes. “Every time we pass legislation that takes the regulatory shackles off this legendary industry, our Commonwealth sees record investment, jobs and growth.”

In 2017, Kentucky distillers shipped over $452 million worth of product abroad, with whiskey accounting for about 84 percent of the total shipments. However, the KDA’s report was unable to factor in the effects of retaliatory tariffs imposed in mid-2018 by the European Union, China, Canada, Mexico and Turkey, which together account for 58 percent of Kentucky's whiskey exports.

In 2018, approximately 8.1 million barrels of spirits were aging in Kentucky, a 61 percent improvement from 2009 as more distilleries opened and existing ones boosted production. Nearly 7.5 million of those barrels contain bourbon – the highest level since 1972.