Kentucky Alcoholic Beverage Market: Regulations, Statistics, Trends, and Wholesalers

Kentucky, the undisputed bourbon capital of the world, presents a fascinating tapestry of alcohol regulations that reflect its rich distilling heritage and complex relationship with spirits. Despite its global reputation for producing America’s native spirit, the state maintains a patchwork of alcohol laws with counties classified as wet (allowing full sales), dry (prohibiting sales), or “moist” (partial allowances like restaurant sales or wineries). As of 2022, 10 counties remained fully dry, creating a striking contrast to Kentucky’s dominant position in bourbon production.

The state’s regulatory framework contains several distinctive quirks that add character to its beverage landscape. Prohibition-era laws still influence modern commerce, allowing wine to be sold in pharmacies but not supermarkets unless the store has a separate entrance and restricts minors from working in the alcohol section. Perhaps most uniquely, Kentucky allows bars and retailers to buy and resell vintage spirits directly from private collectors, bypassing the standard three-tier distribution system—a collector’s paradise in the heart of bourbon country.

Kentucky had an approximate population of 4.5 million people in 2023, with 2.3 million within the legal drinking age bracket. The state ranks 29th in distilled spirits consumption. The state’s alcohol industry features an impressive production landscape with over 145 distillers, 90 breweries, and 60 wineries contributing to the market’s vibrancy and variety.

We’ve prepared a guide to the Kentucky market which covers the following topics:

• Consumption trends
• The most popular alcohol categories
• Local guidelines

If you need help establishing your presence in Kentucky, provide your information below, and we’ll contact you to share more on how we can help.

Consumption Trends In Kentucky

Kentucky is an attractive state when it comes to alcoholic beverage brands and overall consumption, particularly spirits. Spirits soared in the five-year period from 2019 to 2023, growing at +5.74% CAGR. Wine and beer saw slowdowns in this same period, falling -0.63% CAGR and -1.76%, respectively.

Kentucky Spirits Consumption from 2019-2023 by 9-Liter Cases

Kentucky Wine Consumption from 2019-2023 by 9-Liter Cases

Kentucky Beer Consumption from 2019-2023 by 9-Liter Cases

Kentucky State Alcohol Licensing

Kentucky operates as an open state with the Kentucky Department of Alcoholic Beverage Control (ABC) overseeing all aspects of the industry, including licensing, enforcement, and regulatory compliance. Kentucky is not a franchise state, providing more flexibility in supplier-distributor relationships.

Common Licenses for Manufacturers in Kentucky

Spirits

• Distiller’s License (Class A) – Required for distilleries producing more than 50,000 gallons of spirits annually. The cost is $3,090 per year.
• Distiller’s License (Class B) – For smaller distilleries producing 50,000 gallons or less annually. The cost is $1,000 per year.
• Brand Registration – Register products with the Kentucky ABC using the Kentucky PRO (Product Registry Online) system.

Wine

• Small Farm Winery License – Allows for manufacturing, bottling (for own and other licensed wineries), custom crushing services, and off-premises retail sales (each outlet requires separate licensing).
• Direct-to-Consumer (DTC) Shipping License – Allows shipping up to 10 cases per person/month per winery.

Beer

• Standard Brewery License – For production and on-site sales (if allowed by local regulations).
• Temporary License – For short-term events (e.g., festivals).

Kentucky State Alcohol Regulations

Kentucky requires all brands to be registered in the state, and distilled spirits, wine suppliers, and wholesalers may not sell or offer to sell a brand that is not registered.

Price Posting in Kentucky

Price posting is not required.

Direct-to-Consumer Sales and Delivery

Kentucky offers comprehensive direct shipping options for alcohol, with similar regulations across all major beverage categories:

Wine, Spirits, and Beer Shipping

An alcoholic beverage manufacturer licensed in Kentucky or another state, or a holder of a Kentucky Out-of-State supplier license, may deliver or ship alcoholic beverages to Kentucky consumers if:

• The manufacturer or supplier obtains a Kentucky Direct Shipper License
• The Kentucky purchaser:
  • Is of legal age
  • Does not hold a Kentucky alcoholic beverage license
  • Makes the purchase for personal consumption only and not for resale
  • Receives the shipment at an unlicensed location in a territory where the alcoholic beverages may be legally sold or received
• Shipments are limited to:
  • Wine: Not to exceed 10 cases per consumer per month
  • Spirits: Not to exceed 10 liters per consumer per month
  • Malt beverages: Not to exceed 10 cases per consumer per month
• The alcoholic beverages are delivered or shipped through a common carrier

Retailer Delivery

• Package Stores: A quota retail package licensee may deliver or ship distilled spirits and wine in unbroken packages to Kentucky consumers at the consumer’s request.
• On-Premise Retailers: Retailers authorized to sell alcoholic beverages by the drink may sell alcoholic beverages in sealed containers for delivery, to-go, or take-out under these conditions:
  • Sales must be in conjunction with the purchase of a prepared meal
  • Quantities must be reasonable for a meal purchase
  • Deliveries must be made in a vehicle operated and owned by the licensee, their employee, or an independent contractor
  • Deliveries can only be made into wet or moist territory to adult non-intoxicated recipients

Kentucky Spirits Volume Sales By Category – 2023 Data

Spirit trends in Kentucky by volume and dollar sales in 2023.

Source: Beverage Information Group

Kentucky Beer Volume Sales By Category – 2023 Data

See below for the beer trends in Kentucky by volume sales in 2023.

Source: Beverage Information Group

Kentucky Wine Volume Sales By Category – 2023 Data

See below for the wine trends in Kentucky by volume sales in 2023.

Source: Beverage Information Group

Alcoholic Beverage Distributors Located In Kentucky

Alcohol sold in Kentucky and the rest of the United States is subject to the three-tier system. When referencing the “middle tier,” we’re referring to the importers and wholesalers within the industry. The middle tier receives its product from suppliers and manufacturers. They then sell the products to distributors, who sell to retailers, and ultimately, it ends up in the consumers’ hands for consumption.

Below you will find an updated list of the top distributors located in the state of Kentucky.

Wine & Spirits Distributors

Selling Alcohol In Kentucky

Should you be interested in starting an alcoholic beverage brand or you own one in Kentucky, then you need to know the laws of selling within the state. Here at Park Street, we’ve researched the answers to some of the most frequently asked questions out there. If you’d like to know more about selling your products in Kentucky, please contact us.

FAQs on Kentucky Beer, Wine & Spirits Sales

Buying Alcohol In Kentucky – Hours, Locations & Taxes

We also cover everything there is to know about buying alcohol in the state of Kentucky. This section is for consumers primarily, so they know when and where to purchase products for on-premise and off-premise consumption.

FAQs on Buying Beer, Wine & Liquor in Kentucky

Data Sources: abc.ky.gov

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