Signature Industry: Ky Bourbon booming, but distillers say high taxes and product shortages hamper growth

06/05/2013 06:10 PM

The Kentucky bourbon industry is the only industry in Kentucky that did a phenomenal thing during the economic downturn – it grew- but distillers say they still face obstacles.

In 2012 distilleries put back more than 1-million barrels of bourbon to age in Kentucky. Those barrels have to age several years to become bourbon, and in the mean time distillers have to pay Kentucky taxes on the barrel every year that it sits in the Commonwealth.

But it was an unexpected resurgence of the industry that has distillers scrambling to increase warehouse space to age bourbon, and customers lining up to wait for a chance at the good stuff.

Part two of the series on Kentucky’s Signature Industries: Bourbon airs Thursday and gives an up-close look at the economic impact bourbon has on Kentucky.


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