Bardstown is getting a new distillery!

[Kyjd75]

$25 million dollar investment. The Bardstown Bourbon Co. From the Courier-Journal: http://www.courier-journal.com/story/money/2014/06/26/bourbon-boom-leads-new-bardstown-distillery/11412463/

[squire]

Good news, anybody know who the players are?

[petrel800]

http://www.kentucky.com/2014/06/26/3310722/ex-makers-mark-distiller-to-open.html

This article appears to have a little more info.

One thing I don't like is the "tax incentives" deal. GA as well as other states have been doing a lot of it to attract business and it amounts to the government picking winners and losers and other businesses/tax payers getting stuck picking up the slack. Essentially I don't understand why anyone should get a better deal than anyone else, you know the old equal protection under the law deal, but I guess that might be a discussion better suited for a different section of this forum.

[TunnelTiger]

Tenn has been giving the state away to the automobile companys, espcially VW

[squire]

That does answer a few questions I had. Tax incentives are popular because they work creating more tax revenue through the multiplier effect so actually reducing the tax burden on other businesses and local citizens.

[theglobalguy]

Good news, anybody know who the players are?

http://www.wdrb.com/story/25879329/another-distillery-to-open-in-bardstown-in-2016

CEO - David Mandell

https://www.linkedin.com/pub/david-mandell/45/a02/746

Master Distiller - Steve Nalley

http://imbibemagazine.com/A-QA-with-Wyoming-Whiskey-Master-Distiller-Steve-Nally

[PaulO]

Just out of curiosity, I wonder what happens to Wyoming Whiskey now? I also wonder if the new Bardstown will make something similar to MM.

[sutton]

That does answer a few questions I had. Tax incentives are popular because they work creating more tax revenue through the multiplier effect so actually reducing the tax burden on other businesses and local citizens.

Yup - you can't beat lower unemployment and income tax revenue to provide a temporary holiday on corporate taxes ... it makes sense. Look at the jobs Texas has sucked out of California (and sorry for the drift) ... putting people to work in good jobs will always trump the temporary corporate tax incentives ... good for Kentucky.

[wadewood]

If BBC tasted Wyoming Whiskey, why on earth would they then hire Steve Nally?

[squire]

Perhaps they have a wheat formula Bourbon in mind.

[BourbonJoe]

If BBC tasted Wyoming Whiskey, why on earth would they then hire Steve Nally?

You're right Wade both Wyoming and Texas whiskey really suck.

Joe

[Quantum]

If BBC tasted Wyoming Whiskey, why on earth would they then hire Steve Nally?

[TunnelTiger]

Maybe he left that line off his resume?

I had the chance to talk to him for a few minutes at the Sampler, and he seemed pretty eager to get back into the Kentucky bourbon business. He didn't seem quite as interested in talking about Wyoming. He was a very nice guy, and I hope this new project goes well.

Sometimes when you take a position with a company you find after your inside that all is not as it appeared. Once realized you look for the earliest escape route even if it means taking a lower position or less compensation.

[cowdery]

I know there were a lot of problems in Wyoming, not least of which they didn't have a water supply on the property and had to truck in water. That's insane. Yes, Wyoming Whiskey sucks, but I wouldn't put that entirely on Steve. He knows his stuff. BTW, he says WW will continue. His replacement, trained by him, is already in place. In Wyoming, he was all by himself, but Steve and Donna are very well-connected in the industry. Steve will be able to easily get all of the expert help he needs in Bardstown.

Donna Nally, by the way, ran the tourism operation at Maker's and also at Wyoming. No word on whether or not she'll do the same at BBC, but I wouldn't be surprised.

Like most expat Kentuckians, Steve and Donna couldn't wait to get back.

Still, I would say curb your enthusiasm about this project. Willett talked about starting up again for 20 years before they actually got there. Michter's had their big dog and pony show three years ago and they're only now beginning to build the distillery in Shively. Angel's Envy had their big government announcement a year ago and nothing has happened to their ramshackle building in Louisville since. Then again, Party Source/New Riff did what they said they were going to do pretty much on schedule, so we'll wait and see.

I understand the conservative opposition to government incentives for businesses, even though the practice tends to be beloved by the party most so-called conservatives usually vote for, but I would argue that the case of Kentucky and bourbon is a little different. "Kentucky Bourbon" is a brand and that is as valuable to the state as it is to the companies, so it makes sense for the people of Kentucky to invest in it. It has many more economic ripples, such as tourism, than state investment in most other kinds of business. Kentucky distilleries, unlike Kentucky auto plants, for example, can't readily get up and leave because they've gotten a better deal in another state, so the investments are inevitably long term. These also are not grants. They have to earn some taxable income before the tax benefits kick in.

Edited June 29, 2014 by cowdery