FRANKFORT, Ky. (Sept. 27, 2021) – Today, Gov. Andy Beshear and Lt. Gov. Jacqueline Coleman congratulated custom beverage developer Flavorman on breaking ground at its expanded beverage campus in Louisville, an $8.5 million investment that will create 30 full-time jobs.
“Kentucky’s economy continues to gain momentum, and our state’s food, beverage and agritech sector is a vital part of that growth,” Gov. Beshear said. “This expansion by Flavorman will not only allow the company to take its business to the next level, but will also create quality job opportunities for residents in the Louisville area while encouraging innovation within the commonwealth’s food and beverage and spirits industries. I want to thank the leadership at this homegrown Kentucky company for furthering their commitment to our state and our talented workforce.”
Lt. Gov. Coleman, who attended today’s groundbreaking, welcomed the growth of a company that has called Louisville home since its founding in 1992.
“Kentucky’s economy is on fire and I am so excited to celebrate Flavorman’s expansion here,” said Lt. Gov. Coleman. “This will create career opportunities in Louisville, and I look forward to Flavorman adding to their nearly three decades of success.”
Located on South 8th Street in downtown Louisville, the 24,000-square-foot operation will more than double in size with a 28,000-square-foot expansion of Flavorman’s state-of-the-art beverage campus, which will connect to the company’s main laboratory. The expanded facility will boost production capacity and expand Flavorman’s blending, bottling/canning, processing and bulk storage operations. Company leaders anticipate the expansion will be complete by fall 2022 and will create new jobs in manufacturing, product development and quality control.
Flavorman located at its current facility in 2006 before purchasing a neighboring building in 2012 that would become the Distilled Spirits Epicenter and house an educational distillery called Moonshine University.
Together, Flavorman and Moonshine University make up a world-class beverage campus that houses a fully equipped educational distillery, state-of-the-art classroom, production facility with a custom bottling line, extensive sensory library and a beverage innovation laboratory. Moonshine University has hosted hands-on classes for students from all 50 states and 44 countries.
“This expansion is an incredible opportunity for our city,” said David Dafoe, founder and CEO of Flavorman. “When I started Flavorman almost 30 years ago, I did it out of a passion for the craft. I’m proud of the role Flavorman and Moonshine University continue to play in establishing Louisville as the epicenter for not just bourbon, but the beverage industry overall.”
Based in Louisville, Flavorman assists clients in developing custom beverages, including more than 70,000 unique formulations for brands such as Crispin Hard Cider, Formula O2, Jones Soda, Chiquita, Joia Spirit Craft Cocktails, Go Fast Energy and others.
Flavorman’s expansion adds to Kentucky’s thriving food, beverage and agritech sector, which includes more than 350 facilities and employs over 52,000 people. Since the start of 2020, roughly 70 new location and expansion projects within the industry that are expected to create more than 2,000 full-time jobs with over $1.3 billion in investments have been announced.
Louisville Mayor Greg Fischer said the expansion adds to the impressive local industry presence.
“With more than 125 food and beverage companies located regionally, businesses can take products from concept to consumer all in one place – Louisville, Kentucky – and Flavorman is a key player in that ecosystem,” Mayor Fischer said. “Whether a company wants to find just the right balance of flavors to entice consumers or someone wants to learn about the art of distilling, Flavorman is where they turn.”
Flavorman’s expansion furthers recent economic momentum in the commonwealth, as the state builds back stronger in response to the effects of the pandemic.
In July, thanks to strong fiscal management by the Beshear administration, the state budget office reported the commonwealth ended the 2021 fiscal year with a general fund surplus of over $1.1 billion – the highest ever in the commonwealth – and a 10.9% increase in general fund receipts to $12.8 billion.
Year-to-date, private-sector new-location and expansion announcements include $2.9 billion in total planned investment and the creation of approximately 6,700 full-time jobs across the coming years. Through July, Kentucky’s average incentivized hourly wage is $23.47 before benefits, a 6.2% increase over the previous year.
In May, Moody’s Analytics published a positive economic outlook for Kentucky, noting mass vaccination as the driving force behind a sustained recovery in consumer services. The state’s recovery, Moody’s said, benefited from earlier reopening efforts and increased demand for manufactured goods over services. The report also found Kentucky’s manufacturing industry outperformed the nation’s since the national downturn last year.
Fitch Ratings in May improved the state’s financial outlook to stable, reflecting the commonwealth’s solid economic recovery. The state’s April sales tax receipts set an all-time monthly record at $486.5 million, as did vehicle usage tax receipts at over $64 million.
In March, Site Selection magazine’s annual Governor’s Cup rankings for 2020 positioned Kentucky atop the South Central region, and third nationally, for qualifying projects per capita. The commonwealth also placed seventh overall in total projects, the highest of any state with a population under 5 million. Site Selection also recently placed Kentucky in a tie for fifth in its 2021 Prosperity Cup rankings, positioning the state among the national leaders for business climate.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in June 2017 preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $130,000 in tax incentives based on the company’s investment of $2 million and annual targets of:
- Creation and maintenance of 20 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $20 including benefits across those jobs.
Additionally, KEDFA approved Distilled Spirits Epicenter for up to $30,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, the company can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives.
For more information on Flavorman, visit Flavorman.com. To learn more about the Distilled Spirits Epicenter and Moonshine University, visit DS-Epicenter.com.
A detailed community profile for Jefferson County can be viewed here.
More information on the Governor’s AgriTech Initiative is available at AgriTech.ky.gov.
Information on Kentucky’s economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.