July 28, 2022
(press release)
–
The following information was released by the Kentucky Cabinet for Economic Development:
Today, Gov.
Andy Beshear
announced another major investment in
Kentucky's
bourbon industry as
Beam Suntory
will expand the capacity of
Jim Beam Brands Co.
with a
$400 million
investment that will create more than 50 full-time jobs at the
Booker Noe Distillery
in
Boston
.
"Jim Beam is a renowned name within
Kentucky's
signature bourbon industry, and I am thrilled to see the company continue to grow in our state,"
Gov. Beshear
said. "This is a substantial investment in
Nelson County
that will ensure Jim Beam continues to grow in
Central Kentucky
for decades to come. Thank you to the leaders at the company for once again showing faith in our state and our incredible workforce."
"We are excited about this expansion opportunity at our Booker Noe site, building on our recent investment in the new consumer experience in
Clermont
, and now expanding production to ensure enough of our premium liquid is available wherever consumers are looking for them," said
Carlo Coppola
, managing director of the
James B. Beam Distilling Co.
"We appreciate the continued support of
Gov. Beshear
and his administration of the bourbon industry and these incentives will enable us to bring more great jobs to
Kentucky
. We are still finalizing our plans and will have more details to share very soon."
Based in
Clermont, Kentucky
, the James B. Beam Distilling Co. brands have been produced in the state since 1795.
Beam Suntory
was formed in 2014 after the company was acquired by
Japan
-based
Suntory Holdings
.
Beam Suntory
is one of the world's largest producers of premium spirits, with products that include a range of whiskeys, cognacs, gins, vodkas, rum and more. Major bourbon brands include Jim Beam, Maker's Mark, Booker's, Legent,
Basil Hayden
, Knob Creek and Baker's.
This investment adds to recent bourbon and spirits growth throughout the commonwealth. Since the start of the Beshear administration,
Kentucky's
spirits industry has announced more than 50 new-location or expansion projects totaling over
$1.1 billion
in planned investments and creating more than 900 announced full-time jobs. Currently, approximately 60 spirits facilities directly employ more than 5,300 people.
Kentucky's
bourbon sector is a nearly
$9 billion
signature industry, generating more than 22,500 jobs with an annual payroll exceeding
$1.23 billion
.
Gov. Beshear
also worked with
U.S.
Commerce Secretary
Gina Raimondo
to remove harmful bourbon tariffs on trade with the
United Kingdom
and
European Union
, ensuring continuing strength in the export market.
Nelson County
Judge/Executive
Dean Watts
said the project adds to the company's significant presence in the region.
"We are very excited to see the expansion of the
Booker Noe Distillery
in
Boston
. This giant investment will add to the already very large footprint of Jim Beam in
Nelson County
,"
Judge Watts
said. "The art of making great bourbon is so important to the bourbon heritage that we take pride in, and Jim Beam is top shelf."
Kim Huston
, president of the
Nelson County Economic Development Agency
, is glad to see the global brand continue to grow.
"It's always exciting when we are able to celebrate the expansion of one of our companies. I want to thank Jim Beam for making this tremendous investment in
Nelson County
," Huston said. "Jim Beam is considered family as their history of making great bourbon goes back decades and generations. The future of Jim Beam is bright as this expansion will allow production to increase, and we will be able to see even more bottles of Beam products available in
the United States
and across the globe."
Beam Suntory's
investment and planned job creation furthers recent economic momentum in the commonwealth, as the state builds back stronger from the effects of the pandemic.
In 2021, the commonwealth shattered every economic development record in the books. Private-sector new-location and expansion announcements included a record
$11.2 billion
in total planned investment and commitments to create a record 18,000-plus full-time jobs across the coming years.
Kentucky's
average incentivized hourly wage for projects statewide in 2021 was
$24
before benefits, a 9.4% increase over the previous year.
In the past year, the Beshear administration announced the two largest economic development projects in state history. In
September 2021
,
Gov. Beshear
and leaders from
Ford Motor Co.
and
SK Innovation
celebrated a transformative
$5.8 billion
investment that will create 5,000 jobs in
Hardin County
. And in April of this year, the Governor was joined by leadership at Envision AESC to announce a
$2 billion
investment that will create 2,000 jobs in
Warren County
. These announcements solidify
Kentucky
as the EV battery production capital of
the United States
.
The economic momentum has carried strongly into 2022, with both SandP Global Ratings and Fitch Ratings upgrading
Kentucky's
financial outlook to positive in recognition of the commonwealth's surging economy.
And
Site Selection magazine
placed
Kentucky
at 6th in its annual Prosperity Cup rankings for 2022, which recognizes state-level economic success based on capital investments.
Kentucky
has posted new record low unemployment rates for three consecutive months, falling from 3.9% in April to 3.8% in May and 3.7% in June.
In July, the Governor reported the highest annual growth rate in 31 years. And for the second year in a row,
Kentucky's
General Fund budget surplus has exceeded
$1 billion
. Also in July,
Gov. Beshear
reported that the state's
Rainy Day
fund is up to a record balance of
$2.7 billion
, significantly higher than the
$129 million
balance the fund had when the Governor took office.
To encourage investment and job growth in the community, the
Kentucky Economic Development Finance Authority
(KEDFA) today preliminarily approved a 15-year incentive agreement with the company under the
Kentucky Business Investment
program. The performance-based agreement can provide up to
$3 million
in tax incentives based on the company's investment of up to
$436.4 million
and annual targets of:
Creation and maintenance of 51 Kentucky-resident, full-time jobs across 15 years; and
Paying an average hourly wage of
$51
including benefits across those jobs.
Additionally, KEDFA approved
Beam Suntory
for up to
$550,000
in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup
Kentucky
sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, the company can receive resources from
Kentucky's
workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.
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