Constellation Brands has acquired a minority stake in Bardstown Bourbon Company (BBCo), a new whiskey distillery in the US.

This deal offers BBCo a platform to develop new brands and create a long-term supply of Kentucky whiskey, bourbon, and rye.

Recently, the Bardstown Bourbon Company developed a space in the American whiskey market with a collaborative whiskey, bourbon, and rye distilling programme, which is intended to expand the growth of the craft distilling industry.

"This is an exciting and unique investment for Constellation, and different than the venture activity we’ve explored to date."

Constellation Brands senior vice-president and chief growth officer Ben Dollard said: “This is an exciting and unique investment for Constellation, and different than the venture activity we’ve explored to date.

“Investing in a state-of-the-art bourbon facility at Bardstown provides us access to knowledge and production capability to support our emerging premium spirits portfolio over time.

"At the same time, Bardstown will grow with our investment as well as our experience in the beverage alcohol space, our relationships within the industry and our people.”

BBCo commenced commercial production last month and recently announced that it was already preparing to expand its current 1.5 million proof gallon capacity based on the success of the collaborative distilling programme.

Over time, this capacity will be bolstered to six million proof gallons.

BBCo president and CEO David Mandell said: “We are very encouraged to have Constellation as a strategic partner.

“Constellation’s investment and support will further help the Bardstown Bourbon Company reshape the American whiskey market.”

Image: Bardstown Bourbon Company started commercial production in September 2016. Photo: Courtesy of Business Wire/Bardstown Bourbon Company.