Diageo, the international leader in spirits, has announced a significant restructuring of its operations in Kentucky that will see the closure of the bottling facility at the historic Stitzel-Weller Distillery in Shively, Louisville. The decision, effective in April, marks a new chapter for the company as it shifts its focus toward streamlining production processes and strengthening its supply chain across the United States.
Restructuring for a Resilient Supply Chain
The move is part of a two-year corporate-wide initiative aimed at creating a more resilient and agile supply chain. Launched in the summer of 2022, this initiative focuses on consolidating bottling, maturing, and warehousing operations to optimize efficiency. Although the restructuring is not linked to any potential European Union tariffs that might affect the American whiskey industry, it represents a strategic shift by Diageo to adapt to evolving market conditions and ensure long-term sustainability.
Closure of the Stitzel-Weller Bottling Line
At the heart of this operational overhaul is the decision to end the bottling process at the Stitzel-Weller Distillery, located at 3860 Fitzgerald Road in the Shively neighborhood of Louisville. While the distillery will continue to serve as a site for bourbon distillation—supporting renowned brands such as Blade and Bow, I.W. Harper, and Orphan Barrel—the bottling activities that have taken place there will be transferred to other Diageo facilities throughout the United States. This consolidation effort is expected to result in the loss of 33 local jobs, a change that Diageo acknowledges with deep concern for its workforce.
Support for Affected Employees
Diageo has made it clear that the decision was not made lightly. The company is providing support for those impacted by the bottling line closure through severance packages, outplacement assistance, and other employee resources. Additionally, Diageo is actively sharing information about open roles within its organization, signaling its commitment to helping affected employees transition to new opportunities within the company.
Maintaining Distillation and Visitor Operations
Despite the bottling changes, the Stitzel-Weller Distillery will continue its bourbon distillation operations. This ensures that the legacy and tradition of bourbon-making at the facility remain intact. Visitors to the distillery will also continue to experience the rich history of the site. The visitor center, which has welcomed over 200,000 guests since 2019, will remain open, preserving popular attractions such as the Garden & Gun Club, cocktail classes, and guided tours. The 20 employees who work in the visitor center will not face any changes, allowing the distillery to maintain its role as a key destination for bourbon enthusiasts and tourists alike.
Looking Toward the Future
In the coming two years, Diageo also plans to transition its maturing and warehousing operations from the Stitzel-Weller site to other locations within Kentucky. This change will take effect gradually, and operations related to maturing and barrel handling at Stitzel-Weller will continue until the current bourbon stock is fully depleted. By doing so, Diageo ensures that the quality and tradition of its bourbon products are not compromised while the company modernizes its supply chain infrastructure.
Continued Investment in Kentucky
Diageo’s commitment to Kentucky extends far beyond its operational restructuring. Since 2019, the company has invested nearly $290 million in the state, contributing significantly to the local economy. Diageo’s activities in Kentucky support more than 1,600 jobs across all its operations and involve an annual spend of approximately $76 million on locally sourced wooden barrels, corn, and rye. These investments underscore Diageo’s dedication to supporting Kentucky’s agricultural community, workforce programs, local charitable organizations, higher education institutions, and environmental initiatives.
Bulleit Bourbon and Other Iconic Brands
The restructuring does not impact the production of Bulleit bourbon. This beloved brand will continue to be distilled at Diageo’s facilities in Shelbyville and Lebanon, ensuring that its production remains uninterrupted. The decision highlights Diageo’s balanced approach to restructuring—one that preserves its most valued traditions and brands while seeking efficiencies that will help secure its competitive position in the global spirits market.
Local and National Implications
The changes at the Stitzel-Weller Distillery are significant not only for Louisville but also for the broader Kentucky bourbon industry. As Diageo consolidates operations, the company emphasizes its ongoing support for Kentucky’s economy and its active role in the tourism and hospitality sectors that are closely tied to bourbon production. By centralizing bottling operations and optimizing supply chain management, Diageo aims to reduce operational costs and improve overall efficiency, which could ultimately benefit consumers through sustained quality and availability of its products.
Final Thoughts
Diageo’s decision to close the bottling line at the Stitzel-Weller Distillery represents a major shift in how one of the world’s leading spirits companies approaches production and supply chain management. While the move results in a loss of jobs and a reorganization of operations, the company’s commitment to supporting its workforce and investing in Kentucky’s economy remains steadfast. With continued distillation at the historic site, ongoing visitor experiences, and plans to transfer maturing and warehousing operations gradually, Diageo is taking deliberate steps to modernize its operations while honoring the traditions that have made Kentucky bourbon famous. This strategic realignment may well set a precedent for other industry players looking to adapt to an ever-changing market landscape while preserving the rich heritage of American bourbon.
