Buffalo Trace to invest $200 mio into distillery expansion

Sazerac must take action to meet growing demand for bourbon

The Buffalo Trace Distillery will use $200 mio during the next seven years for an investment program running in several phases. Plans are made to enlarge cooking, fermenting, bottling and warehouses. Acquiring additional land is necessary for the realization of Buffalo Trace’s expansion in Frankfort, Kentucky. Especially the extensive warehouse program needs place – a lot of place! Beside whiskey of the label Buffalo Trace the Blanton's Kentucky Straight Bourbon is also produced here.

Buffalo Trace currently rations bourbon supply

Buffalo Trace has been working at full capacity since some time and is anxious to increase its whiskey stocks. However, up to now this hardly succeeds, because the demand at the American market is consistently high. It’s so high that the Sazerac Group to which the distillery belongs at the moment is unable to meet this demand in full. Since some time already deliveries cannot be ensured in quantities as it would be necessary. To guarantee the supply of all US states Buffalo Trace has been allocating its bourbon deliveries in monthly cycles. Though slightly more bourbon whiskey is available this year than in 2015 they want to maintain the principle of the adjusted allocation until the investment program will yield fruit and fill the warehouses.

Maturation needs place

This warehouse program of Buffalo Trace doesn’t have only current warehouses in focus but also some former and several new ones. In the past for example two former warehouses had been converted into office houses. During the next 12 months they will be filled again with whiskey barrels. 100.000 barrels can find place here. And on 200 additional acres a total of 30 new warehouses will be built from 2017 onward.