Sazerac Unveils $1 Billion Expansion Amid Declining U.S. Alcohol Consumption

Sazerac, the company behind well-known brands like Fireball Cinnamon Whisky and Buffalo Trace Bourbon, is making a major investment in its U.S. operations. The company is committing more than $1 billion to expand and upgrade its production facilities as demand for premium distilled spirits continues to show strength, even as overall alcohol consumption in the United States declines.

The largest portion of this investment will go toward building new barrel-aging warehouses in Campbellsville, Kentucky. Public records show that Sazerac acquired property in the area and applied for state tax incentives for the project in August. A company spokesperson confirmed the plans but did not provide further details, stating only that the project is part of Sazerac’s “long-term vision for sustained, strategic growth.” The new Kentucky facility is expected to create at least 50 jobs.

In addition to the Kentucky expansion, Sazerac is also investing $38 million in its bottling plant in New Albany, Indiana, a suburb of Louisville, Kentucky. The company will use the funds to upgrade equipment and make property improvements at the site, which bottles several of its top brands. According to a press release from One Southern Indiana, the local chamber of commerce, construction and installation work at the Indiana facility is scheduled to begin later this year. The expansion will add 25 new jobs to the plant’s workforce.

Jake Wenz, Sazerac’s CEO, said in the release that the Indiana investment is necessary to keep up with growing demand for the company’s distilled products. Industry data from IWSR shows that while overall alcohol sales have declined, U.S. whiskey and tequila are among the categories expected to grow in the coming years.

Sazerac remains privately held and has been expanding its portfolio through acquisitions. Earlier this year, it purchased Western Son Vodka and added several ready-to-drink brands to its lineup. In December of last year, Sazerac announced it was acquiring Svedka vodka from Constellation Brands, which also owns Corona beer.

The company’s latest investments reflect a broader trend in the spirits industry, where premium products are outperforming other segments of the alcohol market. Sazerac’s moves in Kentucky and Indiana signal confidence in continued demand for American whiskey and other distilled spirits, even as consumer preferences shift and overall consumption patterns change.