Kentucky distillery takes its shot at AI, uses 1,500 sensors to automate bourbon production

Whiskey House, a new Kentucky distillery founded by bourbon industry veterans David Mandell and John Hargrove, has launched as a fully automated, technology-driven contract distilling operation amid widespread turmoil in the American whiskey market. The facility represents a dramatic departure from traditional whiskey-making methods, using advanced sensors, real-time analytics, and predictive control systems to address quality inconsistencies that plague the industry while serving the growing demand from non-distiller producer brands.

The big picture: The American whiskey industry is experiencing significant upheaval, with major brands seeing declining sales and several companies filing for bankruptcy, yet Whiskey House sees opportunity in the chaos.

• Sales of established brands like Bulleit dropped 7% and Wild Turkey fell 8% in the first half of the year.
• Kentucky Owl and Garrard County Distilling have filed for bankruptcy, while Uncle Nearest went into receivership in August.
• The founders believe their tech-forward approach can solve persistent quality and consistency problems that have long plagued traditional distilleries.

How it works: Whiskey House operates more like a modern manufacturing plant than a traditional distillery, with automation and data analytics controlling every aspect of production.

• Over 1,500 sensors monitor temperature gradients, vapor-liquid equilibrium dynamics, reflux ratios, and other critical parameters across all equipment.
• Only seven people work each 12-hour shift, with just three actively involved in production, compared to the typically labor-intensive operations at traditional distilleries.
• A centralized data exchange allows any system to communicate with others, enabling immediate detection of issues from anywhere in the facility.

Key capabilities: The 110,000-square-foot facility can produce up to 120,000 barrels annually while offering unprecedented customization for contract clients.

• In just over a year, Whiskey House has created spirits using 56 different mash bills for 35 customers, producing 11 different recipes in a single two-week span.
• Traditional distilleries typically use only one or two mash bills—Maker’s Mark used just one from 1954 until adding a second in 2025.
• Clients include established brands like Calumet Farms, Redwood Empire, High N’ Wicked, and Clyde May’s.

Advanced tracking systems: Beyond production, Whiskey House has digitized barrel aging and storage through comprehensive monitoring technology.

• Each barrel receives a QR code printed with custom wax ink that won’t degrade over years of aging, replacing traditional hand-written batch tracking.
• Hundreds of sensors in each rickhouse monitor temperature, humidity, airflow velocity, and direction.
• Embedded sensors can track whiskey evaporation from the “angel’s share” in real-time, providing unprecedented visibility into the aging process.

AI development: The company is building machine intelligence programs to further optimize production and aging processes.

• VP of engineering Roger Henley’s team is developing subject matter expert AIs to oversee production and suggest process improvements.
• AI clustering algorithms will identify optimal aging spots in rickhouses for “honey barrels”—the highest-quality whiskey barrels.
• The AI initiatives are about a year away from moving from lab to production, according to Henley.

What they’re saying: Industry veterans believe technology represents the future of spirits production despite current market challenges.

• “What many of the other guys get is just inconsistent because they have less control over the process,” Mandell explained about traditional methods.
• “Technology is changing the way spirits are created around the globe,” said Jeff Hopmayer, a retired spirits industry executive and former founder of the Brindiamo Group. “The more tech and AI you can bring into the operation, the more efficient it becomes.”
• Heather Greene of Milam & Greene, a Texas bourbon producer and Whiskey House client, described the partnership: “It’s like using someone else’s kitchen. I’m bringing in my mash bill, my yeast strain, my aging process.”

Market outlook: Despite current industry turbulence, experts see long-term opportunities for technology-forward operations.

• Hopmayer warns the next five years will be “rough for bourbon producers due to a massive oversupply of barrels without buyers.”
• However, he believes the long-term presents opportunities for those investing in the right technology and processes.
• Mandell remains optimistic: “Our focus is on consolidating the best customers into Whiskey House, the brands that need this kind of focused, custom production.”