Kentucky distilleries expect to see an increase in revenue with the passage of an omnibus alcohol bill. The house and senate both approved Senate Bill 11 this week and it now heads to Governor Matt Bevin.
It increases production limits for microbreweries and wineries and allows distilleries to sell liquor-by-the-drink along with a greater quantity of packaged alcohol.
Paul Tomaszewski owns and runs MB Roland Distillery in Christian County. He says 99 percent of his customers are tourists and being able to sell mixed drinks and 4.5 liters of packaged alcohol per customer per day rather than 3 liters is good for business.
“When we’re trying to sell to tourists and visitors, it’s a much easier sell if we can mix them up a cocktail and say ‘Isn’t that great?’ And then they go, ‘Yes, that is.” And they want to buy the product,” Tomaszewski said.
Tomaszewski says he expects to see an increase in revenue once the bill takes effect and is already in the process of hiring more staff to prepare for an increase in business.
Paducah business owner Keith Bundy says this the bill is good news for people looking to open distilleries and his own plans to open The Silent Brigade distillery in downtown Paducah near the end of April.
“When you add that in to your business plan and you can show that you’ll have a revenue being allowed to sell those products, you can sell more products to each individual who comes through the door, and also you can sell mixed drinks while they’re in your distillery, that helps you to get started if you’re dealing with investors or business loans,” Bundy said.
Bundy says the new rules will increase distillery customers, which he says gives cities an incentive to help distilleries open.
The bill also increases production limits on microbreweries from 25-thousand barrels to 50,000 barrels and for wineries from 50,000 gallons to 100,000 gallons. Allen Dossey of Purple Toad Winery in Lone Oak says the increased limit will allow his winery to expand distribution in other states. He says he’ll have to increase his staff to keep up production.
Tomaszewski says the new law will likely take effect in July.
