Beam Suntory Invests US$400 Million In RNG And Facility Expansion

Beam Suntory, which owns brands such as Jim Beam, Maker’s Mark, Laphroaig, Roku gin, and more, is investing more than US$400 million to expand production at its Booker Noe distillery in Boston, Kentucky. The distillery produces Jim Beam. The expansion will increase the facility’s capacity by 50% while reducing the distillery’s greenhouse gas emissions by 50% through the use of anaerobic digestors that will produce renewable natural gas (RNG) to power the facility.

Expanding Capacity And Lowering Emissions

Beam Suntory has entered into an agreement with 3 Rivers Energy Partners, an energy developer that designs, builds, and operates RNG projects, to build a facility across the street to convert spent stillage into biogas which will be treated to RNG standards and piped directly back to the Booker Noe facility. The digestors will also produce a high-quality, low-cost fertilizer, which will be made available to local farmers, thereby supporting sustainable and regenerative agricultural practices. Upon project completion, which is expected in 2024, the Booker Noe distillery will be 65% powered by RNG and 35% by fossil-based natural gas. “We are committed to making a difference by investing in cleaner technologies and systems, and the expansion and significant reduction in greenhouse gas emissions from this project does just that with our biggest brand,” said Beam Suntory President and CEO Albert Baladi. “This expansion will help ensure we meet future demand for our bourbon in a sustainable way that supports the environment and the local community that has helped build and support Jim Beam.”

In addition to capacity expansion, the investment includes land, warehouses, and 51 new local jobs. Further, this project allows the distillery to invest in high-efficiency gas boilers to make maximum use of RNG, use scrubbing technology to remove carbon dioxide (CO₂) from fermentation tanks, and following a purification process, facilitate the beneficial reuse of more than 110,231 tons (100,000 tonnes) of high-purity CO₂ annually. “As consumers around the world continue to discover bourbon, we want Jim Beam and our commitment to sustainability to be part of that discovery,” said Carlo Coppola, managing director of the James B. Beam Distilling Co. “I’m so proud to be honoring our legacy by leveraging this renewable energy to support our brand’s trajectory for the next 225 years.”

According to Beam Suntory, the company invests more than US$500 million every year to make bourbon in Kentucky. The company recently completed a US$60 million transformation of the James B. Beam Distilling Co.’s homeplace in Clermont, Kentucky, including a new and elevated visitor experience, inclusive of the full Beam family of brands like Knob Creek, Basil Hayden, Booker’s Bourbons, the Fred B. Noe Distillery, and the Kitchen Table restaurant.

“I want to once again thank the leadership at Beam Suntory for this commitment to grow the Booker Noe Distillery in Nelson County,” said Kentucky Governor Andy Beshear. “The dozens of jobs this project is creating will benefit so many families in Central Kentucky, and the company’s continued growth reflects the strength of our state’s signature bourbon industry. Congratulations to everyone involved with this significant investment. I could not be more excited to see what’s next for Jim Beam Brands in Kentucky.”

Beam Suntory’s investment was first announced by the state of Kentucky through a series of economic incentive grants, made in July, including the US$400 million investment to increase capacity, build warehouses, and create new jobs. “Our goal is to help Jim Beam create a sustainable future for their company and the planet,” said John Rivers, CEO of 3 Rivers Energy Partners. “With this process, we will create new renewable energy, and help sustain the agriculture needed to create their products. It is truly a full circle sustainability approach.”

Beam Suntory ESG Strategy

Beam Suntory has made commitments to protect the planet, consumers, and communities through Proof Positive, the company’s long-term, enterprise-wide sustainability strategy. The strategy was launched 2021. In mid-September 2022, the company issued its inaugural sustainability report. “As we progress against our Proof Positive goals to combat climate change, reduce harmful drinking, and give back to our communities, our sustainability report is an important way we will share our progress and increase transparency,” said Baladi, Beam Suntory president and chief executive officer. “We are proud of the actions and achievements detailed in the 2021 report in what we consider a foundational year. It’s inspiring to see how our people have embraced Proof Positive and contributed to our progress in so many meaningful ways. “We’re now mid-way through 2022 and we continue to make investments to advance our sustainability strategy.”

Across Proof Positive’s three pillars, Beam Suntory’s fiscal 2021 sustainability highlights include:

Nature Positive

• Beam Suntory joined the Race to Zero campaign and increased use of renewable energy with nearly 100% of its global sites purchasing Renewable Energy Certificates and/or generating renewable power onsite.
• Installed closed-loop cooling at the Jim Beam Clermont facility in Kentucky, reducing the average volume of water the facility recirculated from the lake for cooling by more than 35 million gallons (132 million liters) per month.
• Supported restoration and protection of a sub-basin of the Lerma–Santiago river basin in Mexico through the Charco Bendito Project’s reforestation, soil conservation, and aquifer recharging efforts.
• Established the first Peatland Water Sanctuary in Scotland, investing more than US$4 million to restore and conserve 3212 acres (1300 hectares) of peatland by 2030.

Consumer Positive

• Began applying macro-nutritional labeling to key brands across Europe and the United States as part of the company’s voluntary global commitments to increase information available to consumers.
• Increased options for lower- and no-alcohol-by-volume drinks with Sipsmith’s FreeGlider in the United Kingdom and Lemon Sour Zero in Japan.

Community Positive

• Increased percentage of female new hires to 50% (up 6%) and percentage of women in leadership roles by 3%. Increased the percentage of racially and ethnically diverse employees in the United States by 4%, at both the mid- and senior-manager levels.
• Scored 100% on the Human Rights Campaign Foundation’s Corporate Equality Index in the United States and named a Great Place to Work Certified company in the United States, Canada, Spain, Singapore, Korea, China, India, Mexico, and Germany, and is considered one of the Best Workplaces for Women in Mexico.
• Supported the global growth and sustainability of the American whiskey industry through the James B. Beam Institute for Kentucky Spirits at the University of Kentucky.
• Donated 3248 volunteer hours to local communities during the company’s annual service event, Together for Good.

Helped increase access to medical care in India’s hardest-hit areas from COVID-19 through a joint US$600,000 donation with Suntory Holdings.