California becomes powerhouse in bourbon business

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A whiskey shot with ice cubes resting on a wooden surface.. (Photo by: Felipe Rodriguez/VWPics/Universal Images Group via Getty Images)

Move over, Kentucky. There's a new king in the bourbon business, a California king to be precise.

More than just a powerhouse in the wine industry, California tops the list of states with the most distilleries, with 104 distilleries as of 2024, according to the U.S. Bureau of Labor Statistics.

Kentucky, dubbed Bourbon Country and home to the "bourbon capital of the world," ranked fourth on the same list.

According to online retailer The Whisky Masters, California saw a 940% increase from 2011 when the state only had 10 distilleries. In 2001, California had zero.

Right behind California is Texas, with 103 distilleries as of 2024. Ten years ago, the Lone Star state had 16.

"It’s been exciting to watch these two states develop their own craft spirit scenes," said Daniel Ufland, founder of The Whisky Masters. "California's growth trajectory, especially post-2010, has been explosive, while Texas has shown impressive consistent growth since 2006."

Kentucky still remains a game-changer in the bourbon business, seeing growth in the same 10-year period. The Bluegrass state has 84 distilleries, a jump from just 19 a decade ago.

The BLS reports Kentucky leads the nation as the state with the most distillery jobs; over 6,000 employees compared to 917 in California.

Kentucky's Louisville Metro area is also ranked first in the top 10 metropolitan areas by distillery concentration, 22 times over the national average, according to the BLS.

The number of distilleries in the U.S. has steadily grown, from 66 in 2001 to over 1,400 in 2021. The BLS reports nearly 85% of the beverage manufacturing industry in 2021 came from distilleries, breweries, and wineries.

While it wasn't immediately made clear what was leading the change in distilling in California, Ufland said California distillers are experimenting with local botanicals and fruit-based spirits.

"In Texas, they’re crafting bold new whiskeys that capture the state’s big, bold personality…in traditional spots like Kentucky, craft distillers are finding ways to honor and reinvent bourbon-making traditions," he said.

The states with the most distilleries by number as of 2024 are: