More About Diageo’s Kentucky Distillery PlansJune 10th, 2014
Diageo still doesn’t have a name for its new Shelby County distillery, but the liquor giant somewhat revealed its American whiskey strategies at a public gathering at the Shelbyville Country Club on June 10.
Diageo officials said they’re investigating the possibilities of moving its Stitzel-Weller stills from Shively to the new location. These stills have not been used since the early 1990s, but produced some of the greatest bourbon ever made. Meanwhile, Diageo has tapped Vendome to build a 60-foot-tall column still, and Fluor Engineering to construct single story warehouses, which will be 27 feet tall and 55,000 square feet, with slight heat in the winter to keep the fire protection sprinklers from freezing. The heat will not influence aging, officials said.
The 300 acre, $115 million distillery will yield a projected 750,000 9-liter cases or 1.8-million proof gallons annually, but the officials were quick to point out that this volume is just an early estimate and the selected site—Benson Pike—offers growing room.
As for the upcoming master distiller, well, Tom Bulleit, founder of Bulleit Bourbon, had something to say about that. “It wouldn’t be me. I’m just the founder, just the business guy like Bill Samuels [of Maker’s Mark],” Bulleit said. “It will take two or three years just to get going. There will be a great national distiller here, a representative of Kentucky.”
Whether Diageo recruits a current master distiller from another company or pulls in George Dickel master distiller John Lunn (who has been known to be looking over Stitzel-Weller) remains to be seen. But all indications point toward this new facility being solely an American whiskey producer.
Diageo spokesperson Alix Dunn said the distillery will be used to make Bulleit and “innovative products in the pipeline.” It will most certainly not be used for distilling or aging George Dickel Tennessee Whiskey, Dunn said, adding “we can’t do that.” Diageo recently proposed a Tennessee whiskey law change that would allow the use of used barrels. Brown-Forman, the makers of Jack Daniel’s, said this was an effort to age George Dickel in Kentucky, among other things. Tennessee lawmakers said they will study the issue after the summer legislation ends. [UPDATE: the Tennessee legislature's investigation into this matter ended abruptly last night after Lunn testified that the liquor stored in Kentucky would be blended with other spirits and not used for George Dickel.]
As for why Diageo chose to build a new distillery instead of repairing the historic Stitzel-Weller facility, Dunn said, “It made the most sense for the future to start fresh on a new site that allows for more options as needed.” It’s also worth pointing out that the closest residential area to the proposed single story warehouses is about one mile away with the surrounding areas zoned for agriculture. This puts the new facility at a significant distance from potential whiskey fungus litigants.
“We’re not right on top of other people,” Dunn said of the proximity of the distillery. “[Whiskey fungus] is not something we’re in agreement with, but it remains to be seen what the courts have to say about it.”
It also remains to be seen what the future holds for Bulleit. Diageo has not named the Shelby County distillery, though the founder tipped his hat to the fact he might be campaigning for it to become the Bulleit Distillery.
Bulleit bourbon has been one of the most important growth brands, especially in the cocktail culture, and owns the wells in core markets like San Francisco. Bulleit Bourbon sold 600,000 cases last year. Bulleit says his immediate goals for the brand is to roll out a private barrel selection program this fall at Stitzel-Weller, where Bulleit bourbon and rye are currently aged, as well as at two other locations. Neither he nor the other Diageo officials knew exactly how much Bulleit would be aged at the new location, saying there are many steps left to be taken.
The Diageo facility has received the support of the Kentucky governor as well as local and county politicians. A public hearing will be held on June 17 at 6:30 pm in Shelbyville.
At the June 10 gathering, during the first two hours, nobody opposed the distillery. In fact, most locals seemed incredibly enthused, including the Radcliff Farm owners who grow corn for one of Diageo’s competitors. (They didn’t say who.) “It’s going into a beautiful area, very peaceful,” said Jim Tafel, the farm owner. “They’ll have nice neighbors.”