Greenfield Global starts U.S. production of compliant wine base in Kentucky

Greenfield Global said Wednesday that it has begun commercial production and shipments of U.S.-compliant Other than Standard Wine, or OTSW, at its Shelbyville, Kentucky, campus, adding a domestic supply option for American beverage alcohol producers facing higher import costs and supply chain strain.

The company said the operation was built and brought online in less than eight months at its existing 16-acre site in Shelbyville. Greenfield said the new line is aimed at producers of wine-based and spirit-based beverages that have been dealing with rising costs for imported ingredients, freight volatility and more complex compliance requirements.

OTSW is a category recognized by the Alcohol and Tobacco Tax and Trade Bureau, and Greenfield said its domestic product is designed to meet U.S. compliance standards while helping customers manage formulation needs and excise tax positioning under TTB 5010 provisions.

According to the company, producing OTSW in the United States can reduce tariff exposure, lower shipping costs and shorten lead times compared with imported supply. Greenfield said the Shelbyville facility includes dedicated tanks, a reverse osmosis water system, food safety certification and Kosher certification. The site also has rail access and tanker shipping capabilities, which the company said support faster delivery and lower freight costs.

Jimmy Bookstore, vice president of beverage and alcohol ingredients at Greenfield Global, said beverage producers are operating in a volatile environment shaped by imported ingredient costs, freight pressures and regulatory demands. He said domestic production through the company’s integrated supply chain is intended to improve supply security, cost predictability and protection from tariff and logistics disruptions.

Howard Field, Greenfield Global’s chief executive, said the investment was made to respond quickly to changing market conditions and customer demand. He said the privately held company was able to take a longer-term approach to investments intended to improve supply chain agility and customer economics.

For the beverage sector, the move could matter beyond Greenfield’s own customer base because OTSW is used in a range of wine-based and spirit-based products, including some ready-to-drink beverages. A larger domestic supply may give producers another way to manage input costs and reduce dependence on imports at a time when margins remain under pressure.

Greenfield Global said its beverage and distilled spirits business supplies grain neutral spirits, specialty alcohols and flavor solutions, and supports customers developing spirits, RTDs, flavored malt beverages and wine-based products. The company said its broader network includes ISO-certified distilleries, blending and packaging facilities, and distribution centers that can ship products in formats ranging from pails and drums to totes and railcars.