Kentucky distillery bounces back from massive flood that briefly halted bourbon production

FRANKFORT, Ky. (AP) — The long history of bourbon production at Buffalo Trace Distillery has been connected to the Kentucky River — summed up as a blessing and curse by a plaque on the grounds.

In the 1800s, long before the Buffalo Trace name was attached to the distillery, the river served as a floating highway to bring in grain and other production essentials and to transport barrels of whiskey to markets along the Ohio and Mississippi rivers. Even today, river water cools down production equipment. But the river flowing past the distillery flashed its destructive side in April.

A massive flood, caused by days of unrelenting rain, sent the Kentucky River surging over its banks, inundating most of the 200-plus-acre distillery grounds on its main campus in Frankfort. Nearly every phase of production was impacted, as were several warehouses where whiskey is aged.

“It was just something that was hard to process, but we knew we couldn’t take too much time to process it,” said Tyler Adams, a distillery general manager. He said they had much to do to recover from the reservoir of murky water that swamped the bourbon-making campus.

Whiskey production bounces back

Five months later, production at the distillery is back to normal, including of some of the most sought-after bourbons. Its lineup includes the namesake flagship brand, Buffalo Trace, as well as Eagle Rare, W.L. Weller and Blanton’s. Pappy Van Winkle bourbons are distilled and aged at Buffalo Trace while the Van Winkle family remains in control of the coveted brand.

The distillery recently filled its 9 millionth barrel of bourbon since Prohibition, just two and a half years since filling the 8 millionth barrel. It has also introduced new whiskeys to its catalogue and is renovating a campus building into a cafe and events center.

The cleanup enlisted hundreds of plant employees and contract workers. Buffalo Trace fans swamped the distillery with offers to pitch in, Adams said. The distillery politely declined and suggested they might assist area residents instead.

Crews removed debris, sanitized equipment and pumped out what was left after floodwaters receded. Bourbon barrels swept into the parking lot caught some attention, Adams said. No chance for sneak samples, though — the barrels were empty.

Few visible reminders remain of that mud-caked, debris-strewn mess.

Some filled whiskey barrels touched by floodwaters were still being cleaned and tested, but the meticulous task of examining thousands of barrels was nearly complete, the distillery said. Quality control assessments found only small amounts of aging whiskey were impacted. High water marks are etched into some buildings and tour guides casually remind visitors of the epic event.

Danny Kahn, a master distiller for Buffalo Trace’s parent company, says he still experiences “a little PTSD” when recalling those frantic days. River flooding has been a sporadic part of the distillery’s history — including big ones in 1937 and 1978, but in early April, the floodwaters surged to previously unseen heights. Buffalo Trace had also just completed a decade-long, $1.2 billion expansion to double distilling capacity.

“It actually looked kind of calm, but I knew that it was not calm because we could see buildings were under 10 feet (3 meters) of water,” Kahn said. “It was really quite overwhelming.”

Activating their flood plans, workers shut down the distillery and did what they could to safeguard equipment. After that, all they could do was watch and wait. Distillery officials observed the devastation from higher ground and via drone footage.

Once the river crested, it took a few days for the floodwaters to fully recede, but operations gradually sprung back to life. Finished whiskey shipped out the day after the rain stopped. Bottling soon resumed and a makeshift gift shop opened until the visitors’ center was repaired. Tours eventually resumed. But bourbon production halted for about a month as the cost for cleanup and repairs surpassed $30 million.

Several storage tanks shifted off their foundation. Some were repaired, others replaced. Dozens of electrical control panels were destroyed. About three-fourths of gift shop inventory was lost.

“It was just defeating to watch all this flooding and to realize that we’re going to be down for a while,” Kahn said. “Just the apprehension of how much work this is going to be to fix. And when we finally got it done, it was really a sigh of relief and we get back to business as normal.”

Hard times in the whiskey sector

For the American whiskey industry as a whole, it’s been anything but business as usual.

After years of growth, prospects turned sour for the sector amid sluggish sales and trade uncertainties as President Donald Trump imposed sweeping tariffs.

In 2024, American whiskey sales in the U.S. fell nearly 2%, the first such drop in supplier sales in more than 20 years, the Distilled Spirits Council said. Initial data for the first half of 2025 showed a continued decline, it said. American whiskey exports dropped more than 13% through July of this year compared to the year-ago period, it said. The American whiskey category includes bourbon, Tennessee whiskey and rye whiskey.

Lower domestic sales stem from a mix of market challenges, including supply chain disruptions and changes in consumer purchasing trends, said Chris Swonger, the council’s CEO.

“While there’s ongoing debate about whether these are temporary headwinds or signs of a more fundamental shift in consumer behavior, large and small distilleries across the country are under pressure,” Swonger said in a statement.

Kentucky distilleries producing such prominent brands as Buffalo Trace, Jim Beam, Maker’s Mark, Woodford Reserve, Wild Turkey and Four Roses can weather downturns better than small producers.

Heaven Hill Brands, another large producer, recently celebrated its new $200 million distillery in Bardstown, Kentucky, taking a long view of market prospects by significantly boosting bourbon capacity.

“As an independent, family-owned company, we don’t have to chase quarterly trends; we’re building for the next generation,” said Kate Latts, co-president of Heaven Hill Brands, whose brands include Evan Williams and Elijah Craig. “This distillery reflects that philosophy.”

At Buffalo Trace, its future is entrenched alongside the Kentucky River, realizing that more floods could come in the years ahead. The distillery learned lessons to be even better prepared next time.

“This area being a National Historic Landmark, being right on the river, there’s only so much you can do to hold back that water,” Adams said. “Your best bet is to prepare for it, do what you can. But holding back that water? It’s really inevitable it’s going to make it into some spaces.”