KEY TAKEAWAYS: Sazerac acquired the former Garrard County Distilling Co. property for $20 million. The 210-acre Kentucky property includes a 50,000-square-foot distillery and two barrel warehouses. Sazerac plans to restart production at the facility, which has been idle for more than a year. T he company has invested more than $1 billion in its Kentucky operations over the past decade.   Global spirits company Sazerac has acquired a shuttered Garrard County distillery as part of the Louisville-headquartered company’s plans to increase its production capacity. Sazerac offered $20 million during a court-ordered June auction of the former Garrard County Distilling Co. property in Lancaster, Kentucky, and on Aug. 21, the company announced its plans for the site. Jake Wenz, president and CEO of Sazerac, noted in a statement that while the company has invested over $1 billion over the last decade at its Kentucky facilities, much of which went toward expanding production capabilities, more capacity is needed. “Even with all the investments we have made to expand, we need more supply to keep up with demand, and the addition of the Lancaster facility gives us valuable distilling capabilities to support that growth,” he said. Sazerac is a fourth generation, family-operated and privately held company co-headquartered in Louisville and New Orleans, Louisiana. Its portfolio of more than 500 brands includes Weller, Fireball Cinnamon Whisky, BuzzBallz, Southern Comfort and Wheatley Vodka, among many others. Situated on approximately 210 acres, the former Garrard County Distilling Co. property at 450 Southern Soul Way includes a 50,000-square-foot distillery with two column stills and two 20,000-square-foot warehouses for barrels. The acquisition will restart production at the site, which has sat quiet for over a year. Founded by Atlanta-based Staghorn, Garrard County Distilling Co. began production in January 2024, representing an announced $250 million investment at a site that could produce 150,000 barrels of bourbon annually. But by April 2025 the independent distillery had ceased operations, with its lender Truist Bank filing suit, alleging the distiller had defaulted on its loans and owed just over $26 million. The Garrard County Circuit Court then ordered the property into receivership, in which a third-party takes control of a property to preserve the asset, possibly leading to a sale. Tom Collins Distilling, affiliated with Sazerac, bought the Truist loan agreements in February 2026, court records show, and in March the spirits company moved to have the property sold in a foreclosure auction. The property was auctioned at a master commissioner’s sale June 26, selling to sole bidder Tom Collins Distilling for $20 million. A June 2026 appraisal valued the property at just shy of $28 million, court records show. The Lancaster distiller now joins Sazerac’s footprint in Kentucky, which includes Buffalo Trace Distillery in Frankfort, the most visited distillery in the state; Barton 1972 Distillery in Bardstown; and The Glenmore Distillery in Owensboro. The company employs nearly 3,000 people across its Kentucky operations and that headcount is expected to grow with the new facility. Sazerac has not yet determined which of its spirits will be produced in Lancaster, though it plans to use the facility’s existing infrastructure to do so. It was not clear exactly when the site will become operational or how many people it will employ once it is, but the company did note it intends to resume production in the near future and plans to expand the initial team as operations there develop. While there was a public-facing component to Garrard County Distilling Co.’s operations at the site, Sazerac plans to only use it for production. The acquisition comes as the alcohol industry overall, American whiskey included, is facing struggles on a variety of fronts, from Americans reporting they’re drinking less or not at all to shifting tariff policies affecting bourbon exports. It also comes after the second of two public rejections of unsolicited $15 billion cash offers to acquire another Louisville-based spirits giant, Brown-Forman, which makes Jack Daniel’s and Woodford Reserve. In a news release, Sazerac highlighted recent investments in its Kentucky properties, including approximately $50 million at its Barton 1792 Distillery, where it added a new boiler house, more fermenters, expanded bottling operations and added three new aging warehouses that increased the site’s barrel storage capacity by 25%. The company also wrapped a 10-year, $1.2 billion expansion project at Buffalo Trace Distillery in January 2025, adding a new still house and bottling operation, expanding its visitor center and adding 19 new aging warehouses, among other additions. The investment upped production capacity by approximately 150%. At its Glenmore distillery, Sazerac has poured about $40 million over the last five years to improve processing capabilities and upgrade its barrel equipment, bottling lines. Other Kentucky projects include construction of new barrel warehouses in Laurel and Taylor counties. Reach growth and development reporter Matthew Glowicki at [email protected] or 502-582-4000. This article originally appeared on Louisville Courier Journal: Sazerac acquires Kentucky distillery for $20M, adding production capacity Reporting by Matthew Glowicki, Louisville Courier Journal / Louisville Courier Journal USA TODAY Network via Reuters Connect ...read more read less