In this article, we are going to discuss the 20 states with the most distilleries in the US. You can skip our detailed analysis of the American liquor market, the recent positive development for Bourbon distillers, and the rise of whiskey tourism, and go directly to the 5 States with the Most Distilleries in the US.
Since time immemorial, alcohol has been a part of the social fabric of human life on earth. Although its true origin is lost in the mists of history, the first signs of alcohol show up around 7000 BC, when a fermented drink was produced from honey and wild yeasts in ancient China. The drink is also considered to have driven a significant portion of early societal development. In 1877, an archaeologist named James Death went so far as to suggest that the invention of beer even preceded the invention of bread. That might imply that the reason mankind ever settled down into an agricultural lifestyle was to produce enough grain for beer. In fact, the oldest known recipe in the world is not for food, but how to make beer.
The American Liquor Market:
The American liquor industry is overcoming economic headwinds to meet changing consumer preferences as it chips away at the dominance of beer. As we mentioned in our article – 20 Most Popular Liquor Brands in America – the spirits revenue market share grew from 28.7% in 2000 to 42.1% in 2022, while beer held a 41.9% market share that year. Thus, the spirits industry surpassed beer in revenue for the first time ever. Overall spirit sales in the U.S. were up 5.1% in 2022 to a record $37.6 billion, and annual sales volumes rose 4.8% to 305 million 9-liter cases.
The rise to the top for spirit-makers was fueled in part by the resurgent cocktail culture, including the growing popularity of ready-to-drink concoctions, as well as strong growth in the tequila and American whiskey segments.
According to the U.S. Bureau of Labor Statistics, there were 1,424 distilleries in the U.S. in 2021 – about 22 times the number in 2001.
Good News for Bourbon Distillers:
The Kentucky legislature voted last year to completely phase out the barrel tax, marking a big relief to the Bluegrass State’s booming Bourbon industry. The barrel tax is a property tax on whiskey aging in rick houses. The state rate is small at just 5 cents per $100 in value, but for an industry that is rapidly growing and counties that have hundreds of barrels of Bourbon aging in warehouses, that amount adds up. It’s a tax that distillers say might slow the future growth of the industry and threaten to chip away at the state’s status as the Bourbon industry epicenter. The phaseout is expected to begin in 2026 and should be completed by 2039.
However, the industry’s victory has come at a potential cost – leaders from some of the top Bourbon-producing counties argue that the barrel tax phase out will take away an important source of revenue for local governments. Over 25 counties in Kentucky stand to lose an estimated $30 million in annual revenue that goes to fund county libraries, schools, and emergency services from property taxes generated on the value of barrels of aging spirits. A fiscal note included in the bill shows that local governments could potentially lose more than $232 million in tax revenue by 2039.
The Rise of Whiskey Tourism:
Whiskey is no longer just a drink but an important cultural phenomenon, a hook that pulls millions of enthusiasts every year to its events, festivals, and most importantly, to its distilleries. Whiskey tourism has been a great economic boon for many small towns and villages all over the world, and many distilleries have invested huge sums into new or expanded visitor centers to play up the industry’s heritage and allow guests to soak in the sights and smells of whiskey-making.
Inspired by the success of California wine country, the Kentucky Distillers’ Association founded the Kentucky Bourbon Trail in 1999. While it launched with less than 10 distilleries, all located within an hour’s drive of each other, Bourbon tourists can now visit 42 distilleries across the Bluegrass State as part of the Kentucky Bourbon Trail and the Kentucky Bourbon Trail Craft Tour. A record 2.1 million tourists made visits in 2022.
A company that has been at the forefront of Bourbon tourism is the Brown-Forman Corporation (NYSE:BF-B). The spirits giant announced its Whiskey Row Project in 2014, investing about $30 million to build a distillery to produce its famous Old Forester Bourbon. As part of the project, the Jack Daniel’s maker transformed the two historic buildings that it acquired in Louisville’s historic ‘Whiskey Row’ block into a production facility and a visitor center, offering tours, a tasting room, exhibits, Bourbon-making demonstrations, and event spaces. The Brown-Forman Corporation (NYSE:BF-B) is also leading the way by inviting tourists into its barrel production facilities where Old Forester, Coopers’ Craft, and Woodford Reserve barrels are made – the Brown Forman Cooperage. This up close and personal look at the Bourbon barrel-making process takes visitors through the cooperage where they’ll see barrels raised from start to finish.
The Brown-Forman Corporation (NYSE:BF-B) ranks among the Best Brewery and Distillery Stocks to Buy Now.
Similarly, the Scotch Whisky Association (SWA) also revealed that the number of tourists to Scotch visitor centers throughout the country once again topped 2 million in 2022, signaling a recovery to pre-pandemic levels. Visitor spend per head also increased by 8.65%, with more than $107 million spent in total at sites across Scotland’s five whisky regions, up 90% since 2010.
One of the companies that has invested heavily to promote Scotch tourism is Diageo plc (NYSE:DEO). In 2018, the London-based company announced a $233 million investment to transform its Scotch whisky visitor experiences in the biggest concerted programme ever seen in Scotland’s whisky tourism sector. Aside from upgrading Diageo’s existing network of 12 distillery visitor centers, the center-piece of the investment is the new state-of-the-art Johnnie Walker immersive visitor experience based in Edinburgh, bringing to life the story of the world’s most popular Scotch whisky and creating a unique welcome for millions of Scotch lovers around the world. The investment seems to have paid off, as in 2023, the total number of tourists visiting Diageo plc (NYSE:DEO)’s Scotch visitor centers across the country exceeded 1 million for the first time ever.
Diageo plc (NYSE:DEO) was placed among the Largest Alcohol Companies in the World in 2023.
With that said, here are the States that Have the Most Distilleries.
View of a distillery floor with various processes of grain neutral spirits production.
Methodology:
To collect data for this article, we have referred to the U.S. Bureau of Labor Statistics, looking for the States with the Highest Number of Distilleries. The following states have been ranked by the total number of distilleries they had in 2021. When two or more states had an equal amount of distilleries in 2021, we ranked them by their numbers in 2020 instead.
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20. Minnesota
Number of Distilleries in 2021: 26
With its vast wealth of natural resources, Minnesota is a very good place to make the finest tasting whiskey and spirits. Minnesotans are allowed to produce wine and beer at home, and now can even grow their own weed legally (albeit in limited amounts), but a new bill being considered in the state Senate would also add distilled spirits to the list of things they can make at home without a license.
19. Wisconsin
Number of Distilleries in 2021: 27
Wisconsin is famous for its breweries and the state is known far and wide for its delicious beers and passionate brewing culture. A major reason for this is also that the Badger State has one of the lowest alcohol tax rates in the country, resulting in lower retail and wholesale prices, and thus making it an attractive option for anyone thinking of setting up their alcohol business – be it for brewed alcohols or distilled.
18. Maryland
Number of Distilleries in 2021: 28
Although Maryland ranks among the States that Drink the Least Alcohol per Capita, it does host a decent number of distilleries. The Old Line State boasts a great history of farming rye and using it to produce some superb whiskeys.
Maryland sits among the States with the Most Distilleries in 2024.
17. South Carolina
Number of Distilleries in 2021: 29
From the Upstate to the Lowcountry, South Carolina has a variety of small-batch distilleries that not only create unique, high-quality spirits, but also contribute significantly to the local economy. The state’s 29 micro-distilleries had already invested $67.4 million into the state and local economies by 2021 ($60 million into production facilities, $6.2 million in jobs, and $1.2 million in agricultural purchases).
16. New Jersey
Number of Distilleries in 2021: 31
New Jersey was notorious for its strict alcohol beverage laws but that all changed in 2013 when the state passed a law that permitted craft distillery licenses, thus giving birth to an industry that has since blossomed. Today, the Garden State is home to tens of distilleries that make everything from rice vodka to rum.
15. Oregon
Number of Distilleries in 2021: 31
Oregon’s small-batch spirits revolution began over two decades ago and today the state has a sizable list of craft distillers wooing the world with their unique creations. In fact, Portland is the city that has the highest concentration of independent craft distilleries in the world, making it an ideal destination for discovering handcrafted spirits and liqueurs with unique flavors.
During the days of Covid-19, most Oregon distilleries were also selling hand sanitizer to consumers at low prices, if not free, with significant discounts offered for refills or bulk orders.
Oregon is included among the Top Alcohol Producing States in America.
14. Georgia
Number of Distilleries in 2021: 33
Although the Peach State was historically known for its corn whiskey and moonshine, Georgia’s world of craft spirits now also includes rye, Bourbon, rum, and liqueurs. And thanks to a recent legislation, the state’s craft distillers can now also sell cocktails and bottles at their own locations.
13. Virginia
Number of Distilleries in 2021: 36
Virginia has a rich heritage of distilling, since, after all, American whiskey is believed to have been born on the shores of the state’s James River in the early 17th century. George Washington himself also began commercially distilling whiskey at Mount Vernon in 1797.
Today, the Old Dominion has come a long way and the state’s numerous distilleries represent an economic impact of more than $163 million and support 1,500 full-time jobs, while producing some of the country’s best gin, vodka, whiskey, and moonshine.
Virginia ranks among the States that Produce the Most Liquor.
12. North Carolina
Number of Distilleries in 2021: 44
The number of distilleries in North Carolina is constantly on the rise and the state’s distillers are moving away from the traditional moonshine and leaning into the so-called ‘moonshine’ style, which means often minimally-aged corn whiskey or rum-like “sugar ’shine”
Being one of the 17 control states, in North Carolina, the sale of liquor is controlled by the government, including taxes, fees, markup pricing, and the profit derived from liquor sales. At around $16.4 per gallon, North Carolina ranks among the States with the Highest Tax on Alcohol.
11. Tennessee
Number of Distilleries in 2021: 55
Home to Jack Daniel’s – one of the Most Popular Whiskey Brands in the World – Tennessee has long been a leader in producing incredible distilled spirits. Mother Nature has blessed the Volunteer State with the ideal land, water, and climate for producing high-quality whiskey, and so make whiskey they did.
Tennessee is placed among the Top Whiskey Producing States in America.
10. Michigan
Number of Distilleries in 2021: 58
Michigan is a large and diverse state that produces a wide range of spirits from Montmorency cherry liqueurs to aquavit. Now boasting over two dozen members, the Michigan Craft Distillers Association was formed in 2014 to organize the growing number of small-batch spirit producers in the Great Lake State.
Michigan crossed the $2 billion mark in liquor sales in 2021, easily leading all control states in total spirits volume and dollar sales.
9. Washington
Number of Distilleries in 2021: 59
One of the top states in America for craft spirits, Washington has tens of distilleries, making everything from single malt whiskey to gin. The Evergreen State is a renowned agricultural region and the access to local grains, clean water, botanicals, and spices are all key to its local flavor.
There were 59 distilleries in Washington in 2021, putting it among the Top 10 States that Produce the Most Spirits.
8. Pennsylvania
Number of Distilleries in 2021: 64
Pennsylvania has emerged as a craft spirit enthusiast’s paradise, boasting a thriving distilling tradition that stretches from the bustling streets of Philadelphia to the picturesque landscapes of Pittsburgh. With an abundance of talented distillers, innovative spirit styles, and unique distillery tour experiences, the Keystone State offers a liquor pilgrimage like no other.
7. Illinois
Number of Distilleries in 2021: 69
In 2010, there were only 2 craft distilleries in Illinois, and less than a decade later in 2019, this number had already ballooned to 34. The Prairie State exported over $114 million worth of liquor in 2023.
Illinois is the State with the Most Distilleries in the Midwest.
6. Florida
Number of Distilleries in 2021: 71
Florida’s rich history with rum, favorable weather conditions, locally grown sugarcane, and tropical atmosphere have all contributed to the rise of a vibrant distilling industry. Launched by the Florida Craft Spirits Association, the Florida Distillery Trail is a 39-stop distillery tour where visitors will get the opportunity to experience the rich spirit-making traditions across the Sunshine State.
Florida ranks 6th in our list of the U.S. States with the Most Distilleries.
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Disclosure: None. 20 States with the Most Distilleries in the US is originally published on Insider Monkey.