Amid Growth, Sazerac Eyes New Bottling Facility in Indiana

The Sazerac Company, among the largest American family-owned distilling companies in the United States, announced today its intention to purchase a manufacturing facility in New Albany, Ind., where it will expand its processing, blending, packaging and distribution capabilities.

The facility, located at 707 Pillsbury Lane, is the former General Mills Pillsbury Plant, which closed in 2016. The building has been vacant since its closing.

“We’re excited about the possibility of expanding our operations into Southern Indiana,” says Jeff Conder, VP of manufacturing for Sazerac. “Our contacts at the State of Indiana, the City of New Albany and the local economic development organization, One Southern Indiana, have been great partners to work with throughout this process. If all goes well, we look forward to getting our construction underway at the new facility, then on to staffing and running our new plant.”

The Indiana Economic Development Corporation (IEDC) has offered Sazerac up to $900,000 in conditional Economic Development for a Growing Economy (“EDGE”) tax credits and up to $150,000 in training grants from the Skills Enhancement Fund based on the company’s job-creation plans. These incentives are performance-based, meaning until Indiana workers are hired, the company is not eligible to claim incentives.

The New Albany City Council is scheduled to vote on final approval of the company’s local incentives next week, with the $66-million project contingent upon the council’s approval.

Should incentives be granted, Sazerac anticipates starting operations as early as November of this year with a staff of approximately 50 new employees. By the close of 2021, Sazerac estimates the 460,000-square-foot former food plant could be at full capacity and fully staffed with 110 workers in total.

The company intends to start with two production lines upon opening.

Sazerac has grown significantly over the past several years and has invested heavily in its manufacturing network, including large investments in its three plants in Kentucky. Its Buffalo Trace Distillery in Frankfort is undergoing a $1.2-billion investment over the next ten years, including new mash cookers, bottling lines and barrel warehouses.

The company’s Barton 1792 Distillery in Bardstown completed a $15-million distillery and grain drying upgrade in 2017, and The Glenmore Distillery in Owensboro completed a $45-million addition in 2016 with a new state-of-the-art distribution center.

Pending local incentive approval, the purchase is expected to be completed June 11th. The purchase price is not being disclosed.

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