Jack Daniel's toasts rising demand with new distillery

In this photo provided by the State of Tennessee, Governor Bill Haslam, right, speaks at the Jack Daniel Distillery in Lynchburg, Tennessee on Thursday, Aug 22, 2013. The makers of Jack Daniel's whiskey will spend more than US$100 million (S$127.7 mi
In this photo provided by the State of Tennessee, Governor Bill Haslam, right, speaks at the Jack Daniel Distillery in Lynchburg, Tennessee on Thursday, Aug 22, 2013. The makers of Jack Daniel's whiskey will spend more than US$100 million (S$127.7 million) to increase production to sate the growing thirst for the world-famous Tennesse whiskey. -- FILE PHOTO: AP

(REUTERS) - The makers of Jack Daniel's whiskey will spend more than US$100 million (S$127.7 million) to increase production to sate the growing thirst for the world-famous Tennesse whiskey.

Jack Daniel's maker Brown-Forman Corp will build a new distillery, adding stills, barrel warehouses and related infrastructure to boost production at its Lynchburg, Tennessee factory, the oldest registered distillery in the United States.

"This is the first time since prohibition that we are going to be constructing a distillery from grassroots," Master Distiller Jeff Arnett told Reuters on Thursday.

Sale, production and transportation of alcohol was banned in the United States from 1920 to 1933.

The new facility will increase the production of the flagship Jack Daniel's Old No. 7 brand by 15-20 per cent from more than 11 million cases per year currently, said Arnett, who is the seventh Master Distiller in the company's history.

Global sales of the Jack Daniel's family of brands grew by 9 per cent in the last fiscal year, with international sales growth outpacing the United States (US).

The new distillery will use the same source of cave spring water as the existing one to maintain the whiskey's unique taste, the company said on Thursday.

The whiskey gets its distinctive flavor after dripping through 10 feet of charcoal, according to the company's website.

The more than 140-year old brand is the highest selling US whiskey in the world.

Construction at the new plant will begin this fall and is expected to be completed within two years. The investment will result in about 90 additional full-jobs over the next five years, Brown Forman said.