In the heart of bourbon country, a new player in Kentucky’s whiskey scene is facing a rough patch. Whiskey House of Kentucky, a high-tech distillery in Elizabethtown that opened its doors in July 2024, has been slapped with a $1.7 million lien by Buzick Construction Co. This financial hiccup, filed in Hardin County, has raised eyebrows in an industry already grappling with challenges like tariffs and shifting demand. The distillery, which prides itself on cutting-edge technology and big ambitions, is now navigating a bumpy road as it works to resolve this dispute and keep its whiskey flowing.
Whiskey House of Kentucky isn’t just another distillery. Spanning over 100,000 square feet, it’s a state-of-the-art facility that runs around the clock, powered by proprietary software that keeps production humming in full automation. Founded by David Mandell, John Hargrove, and Daniel Linde—veterans who previously built the successful Bardstown Bourbon Company—the distillery has billed itself as a game-changer. It’s designed to craft custom whiskey for various clients, aiming to be a powerhouse in a $9 billion bourbon industry that’s long been a source of pride for Kentucky.
But trouble brewed when Buzick Construction, a well-known Bardstown-based contractor, filed the lien. Buzick, which has built facilities for heavyweights like Buffalo Trace, Heaven Hill, Maker’s Mark, and Lux Row Distillers, claims Whiskey House owes $1.7 million for construction work on the distillery. The lien, a legal claim that puts a hold on the property until the debt is settled, isn’t the only issue. Buzick also points to a separate contract worth nearly $6.3 million for additional work, hinting at the possibility of further claims down the line. This financial tangle comes less than a year after Whiskey House celebrated its grand opening, casting a shadow over its early days.
The roots of the dispute aren’t entirely clear, but negotiations between Whiskey House and Buzick were already underway before the lien was filed, according to a Whiskey House spokesperson quoted in the Elizabethtown News-Enterprise. “I think the two companies are working actively to resolve that,” the spokesperson said, acknowledging that talks had been ongoing but reached a point where Buzick felt compelled to take legal action. The spokesperson emphasized that the move wasn’t for lack of effort on either side, suggesting both parties are keen to find a solution without letting the issue spiral further.
Adding to the drama, Whiskey House is dealing with other challenges. The distillery recently sued a barrel buyer who failed to pay for thousands of barrels, a separate issue that’s piling on the pressure. This comes at a tough time for Kentucky’s bourbon industry, which is reeling from declining domestic demand and trade disruptions. Tariffs imposed by Canada and the European Union, sparked by broader U.S. trade policies, have hit American whiskey exports hard. Canada, a key market, has even pulled U.S. bourbon from shelves, costing distilleries like Michter’s in Louisville hundreds of thousands in canceled orders. For a new operation like Whiskey House, these external pressures only complicate matters.
Despite the lien, Whiskey House has shown it’s not short on ambition or resources. Just before opening last summer, the distillery secured a hefty $115 million syndicated credit facility from major players like Truist Bank, U.S. Bank, First Horizon Bank, Rabobank, and CoBank. At the time, CEO David Mandell was upbeat, calling the deal a testament to the company’s strong business model and reliable customer contracts. “The magnitude of the deal and the support of some of the leading banks in the region not only demonstrates the strength of our business, but also provides us with immense flexibility to respond to our customers’ needs,” Mandell said. That financial backing was meant to fuel growth, but now it’s likely being tested as the distillery juggles its obligations.
The lien isn’t an isolated incident in Kentucky’s bourbon world. Just months ago, Garrard County Distilling, another new distillery, shut down amid a $2.2 million lawsuit and liens from contractors, with Truist Bank stepping in to place the operation in receivership over a $26 million debt. The industry’s rapid expansion—Kentucky filled 3.2 million barrels in 2024 alone, with over 14 million aging statewide—has led to growing pains. Some distilleries, caught up in the bourbon boom of the 2000s, overextended themselves, and now face a market where demand is softening and tariffs are squeezing exports.
For Whiskey House, the path forward hinges on resolving the dispute with Buzick and stabilizing its operations. The distillery’s advanced setup, with its 24/7 automated production, positions it as a leader in efficiency and innovation. But financial hiccups like this lien could slow its momentum. The company’s leadership, with their track record at Bardstown Bourbon, knows the industry well and likely has the experience to navigate this storm. Still, the situation underscores the risks of big bets in a competitive and unpredictable market.
Kentucky’s bourbon industry remains a cornerstone of the state’s economy, pouring billions into local communities and drawing tourists to the Kentucky Bourbon Trail. But for Whiskey House of Kentucky, the dream of being the “Willy Wonka of whiskey” is facing a reality check. As the distillery works to settle its debts and keep production on track, bourbon fans and industry watchers alike will be keeping a close eye on whether this high-tech newcomer can weather the challenges and live up to its bold vision.
