News Summary

  • Sazerac has acquired a distillery in Kentucky, marking the company's latest investment move to expand its spirits portfolio.
  • Sazerac, which owns the Buffalo Trace brand, announced last Friday (date undisclosed) that the Garrard County Distilling facility in Lancaster, Kentucky, will provide additional capacity to support the growing demand for its spirits brands. According to media reports, the whiskey company purchased the facility at a court-ordered auction for approximately $20 million.
  • Last year, Sazerac disclosed plans to invest $1 billion in new construction and expansion of existing facilities in Kentucky and surrounding areas to expand spirits production.

In-Depth Analysis

Over the past year, Sazerac has been active in entering popular categories such as ready-to-drink cocktails and shochu through acquisitions and innovation. However, this distillery acquisition shows that while the company is expanding into other market segments, it has not abandoned its whiskey business, where it got its start. The company stated it will use the property's production and aging capabilities to serve its entire portfolio.

The addition of the Lancaster facility is the latest in a series of investments by Sazerac in Kentucky. Last year, Sazerac completed a $1.2 billion expansion project at its Buffalo Trace facility and invested a combined $90 million in its Barton 1792 and Glenmore distilleries.

"Although we have made significant investments to expand capacity, we still need more supply to keep up with demand, and the addition of the Lancaster facility provides us with valuable distillation capacity to support this growth," said Jake Wenz, President and CEO of Sazerac, in a statement.

According to the company statement, the newly acquired property includes two 20,000-square-foot barrel warehouses on 210 acres. Sazerac plans to use the existing infrastructure to support the company's "broader production needs."

The Garrard County Distilling facility opened in 2024 but closed just a year later due to financial difficulties. Sazerac said it plans to hire more employees as it restarts operations at the facility.

"Kentucky has been an important part of the Sazerac story for many years, and we are proud to continue investing and growing here," Wenz said. "Today, nearly 3,000 team members are part of Sazerac's operations in Kentucky, and we are grateful for the opportunity to continue growing this team."