Craft Spirits Consolidation: Kentucky's Casey Jones Distillery Acquired by Multi-State Beverage Group B3
HOPKINSVILLE, Ky. — In a move that highlights the ongoing consolidation within the craft beverage sector, Casey Jones Distillery, a beloved Kentucky producer of small-batch bourbon and moonshine, has been sold to an out-of-state buyer with a growing national footprint.
The new owner, the recently formed B3 Beverage Company of Jersey Shore, Pennsylvania, announced the acquisition this week. B3's portfolio already includes several notable craft breweries and a distillery across the Mid-Atlantic and Northeast, such as Heavy Seas Beer in Maryland, Yards Brewing in Philadelphia, and Two Roads Brewing in Connecticut.
Founded in 2014 by Arlon Casey "AJ" Jones and his wife, Peg Hays—with partner Cody Turner joining in 2022—Casey Jones Distillery built its reputation on family bootlegging history and authentic craft production. The sale, finalized on Jan. 30, marks the retirement of founders Jones and Hays.
"We take it as a positive move for our company and our employees," Jones told reporters. "The distillery is one of the biggest tourism draws in the county. We're glad to find a buyer committed to keeping it going." He acknowledged the sale occurred during an industry downturn but expressed satisfaction with the "fair price" and the distillery's strong position following a $2 million expansion in 2022.
In a reflective Facebook post, Jones described his final days at the helm, serving the last customers personally. "It became very real... I let them know they would be my last customers as the owner," he wrote, expressing gratitude that the new owners promised to preserve the distillery's essence.
The transaction occurs against a backdrop of economic strain in Kentucky's storied bourbon industry and the broader craft beer market. Recent months have seen distilleries like Garrard County and Luca Mariano enter receivership or bankruptcy, while even major players have announced layoffs or pullbacks due to slowed sales and production drops.
Yet, B3 Beverage appears to be bucking the trend. CEO Joey Feerrar stated the acquisition presents "the opportunity to expand production, strengthen distribution and plan for long-term growth." He praised the distillery's "rare mix of real history and really great liquid." Turner, who remains a partner, added that B3's investment would "strengthen the distillery's impact on the community and secure Casey Jones' legacy."
Plans under the new ownership include exploring a larger venue for events like weddings and expanding the brand's distribution reach.
Reader Reactions:
Michael R., Industry Analyst (Louisville, KY): "This is a classic case of smart consolidation. B3 gains a authentic, tourism-ready brand with deep roots, while the founders secure their legacy. In this market, aligning with a group that has distribution muscle is often the only path to scaling up."
Sarah Chen, Craft Spirits Enthusiast (Nashville, TN): "I'm cautiously optimistic. I've loved Casey Jones' moonshine for years. My hope is that B3 truly honors AJ and Peg's vision and doesn't just homogenize the brand into another faceless asset in their portfolio. The soul of these small distilleries is everything."
Dave "Stillhouse" Miller, Former Distiller (Lexington, KY): "It's another nail in the coffin for real independence. These out-of-state conglomerates are strip-mining our state's distilling culture. They talk about 'legacy' and 'history' while the profits leave Kentucky. Mark my words, the product will change, the experience will become corporate, and we'll have lost something genuine."
Eleanor Vance, Local Tourism Board (Hopkinsville, KY): "The continuity is the most important thing for us. Casey Jones Distillery is a key stop on our regional trail. B3's resources could actually enhance the visitor experience and draw more people to our community, which benefits everyone."