Alcohol Distillation’s Effect on Local Economies
Craft-distilled spirits distilleries offer significant economic benefits to their local economies. Not only are sales tax revenues generated, but distilleries also often host tasting events and tours that draw visitors, who then spend money at local hotels, restaurants and shops – contributing an estimated annual visitor count of 2.5 million in Kentucky alone resulting in state and local taxes totaling an estimated total of $358 Million which exceed federal excise taxes on bourbon!
Kentucky Distillers Association (KDA) and its members have responded by working to promote the economic benefits of distilleries, noting how these funds support jobs, education, agriculture, infrastructure and public safety. Furthermore, KDA actively backs efforts to lower bourbon and whiskey prices so as to increase exports and create jobs.
Alcohol can be an economic engine and source of discord in equal measure. With the rise in craft spirits popularity, some communities have witnessed an increase in social problems related to drinking – domestic violence, traffic crashes and homicides as a result. Local governments have responded by regulating prices, tightening enforcement efforts and offering education and prevention programs.
Alcohol distillation is an ancient practice, dating back at least to 2000 BC in China, Egypt and Mesopotamia for medicinal, cosmetic and spiritual use. The basic concept is straightforward: as the temperature of liquid rises, vapors form; initially these contain higher concentrations of alcohol than later produced; as their temperature continues to increase they gradually lose content until reaching boiling point and disappear entirely.
