It is part of a $20 million investment that saw two other expansion projects announced this month.

An expansion to its visitor centre has been announced and the distillery has opened its refurbished Old Taylor House,  the oldest residential property in Franklin County, dating to the 1700s.

According to Buffalo Trace, it believes it is the first spirits supplier to use the new automated storage and retrieval system (AS/RS).

The new distribution centre connects to Buffalo Trace’s existing distribution operation. 

Mark Brown, president and chief executive officer, Buffalo Trace Distillery, said: “We’re pleased our business has grown enough to support the need for this new highly advanced distribution centre.

“We look forward to being able to serve our customers in a more efficient manner and having the capacity for even further growth in the future.”

This $20 million investment is part of parent company Sazerac’s $71 million investment in the state of Kentucky at its three distilleries.

The Glenmore Distillery in Owensboro is receiving a new 223,000 square foot distribution centre, which should be completed later this year or early 2016, and the Barton 1792 Distillery in Bardstown added new equipment to improve production capacity.   

In addition, the Kentucky Economic Development Finance Authority (KEDFA) granted tax incentives totalling approximately $7.4 million between the three Sazerac sites.