To capture the growing demand for its super premium Woodford
Reserve Kentucky Bourbon whiskey globally,
) has decided to expand its Woodford Reserve Distillery.
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Centrally located in Kentucky's Bluegrass Region, off McCracken
Pike in Versailles, this is America's oldest working distillery.
The expansion of this distillery is slated to attract investments
in excess of $35 million, including the construction of three new
warehouses, new pot stills, spreading out of the present bottling
line, and upgrade of the facility's general efficiency and
With the addition of three bourbon maturation warehouses, the
distillery will be capable of holding over 165,000 barrels of
bourbon. Further, the company highlighted that the 3 new pot
stills made of copper will be installed within the existing
distillery premises. Additionally, the project is expected to
bring in 15 new jobs through its completion.
Recently, the premium North American whiskey brands gained
interest among consumers, which resulted in increased exports of
these spirits. Brown-Forman's Woodford Reserve, which was
introduced in 1996, recorded a volume of about 250,000 nine liter
cases and contributed 28% to the company's global net sales
growth in fiscal 2013. The brand has a track record of
registering double-digit growth rates every year since its
Further, the company has received preliminary approval from the
Kentucky Economic Development Finance Authority (KEDFA) for tax
benefit up to $2.5 million through the Kentucky Business
Investment program. As part of this performance-based incentive
plan, the company is entitled to retain a part of its investment
over the tenure of the agreement through corporate income tax
credits and wage evaluation by satisfying job and investment
Additionally, Brown-Forman is entitled to receive tax benefits up
to $500,000 from KEDFA under the Kentucky Enterprise Initiative
Act. Under this initiative, KEDFA allows permitted companies to
recover Kentucky sales and utilize the tax on construction
expenses, electronic processing apparatus, building fixtures and
equipment used for research and development purposes.
Other Stocks to Consider
Other stocks worth considering in the consumer staples industry
Avon Products Inc.
Constellation Brands Inc.
). Of these, Avon has a Zacks Rank #1 (Buy), while Beam and
Constellation Brands carry a Zacks Rank #2 (Buy).