KO Distillery to triple production at Manassas facility, hire 6 new employees

KO Distilling will triple its production of gin, white and bourbon whiskeys in its Manassas facility in the coming year thanks to the help of state and local grants.

Virginia Agriculture and Forestry Secretary Todd Haymore joined the founders of KO Distillery Bill Karlson and John O’Mara and the Manassas City Council on Tuesday where two checks totaling $50,000 in state and city funds were presented to support the distillery’s expansion.

KO will soon source all of its corn, wheat, and rye used in the production of its products from in-state producers. The local monies awarded come from a city economic development fund while state monies awarded are from the Governor’s Agriculture and Forestry Industries Development (AFID) Fund.

The fund was developed under former Gov. Robert McDonnell in 2010 and is used to spur the growth of agriculture business, which includes distilleries. Of the 38 AFID grants awarded by the state since the fund’s creation, a total of 11 has been awarded to businesses in the brewing sector.

“If you told me when we created AFID that it would be for brewing, I would have told you that would be highly unlikely,” said Haymore, who made his remarks before leaving for a scheduled trade mission to Columbia with current Virginia Gov. Terry McAuliffe.

The number of distilleries that focus on liquor production and brewers that craft beers have increased in recent years not only in the region but also in the state. With 270 wineries and more than 150 craft breweries, Virginia has become known for being “destination for craft brews,” added Haymore.

KO Distilling opened its doors a year and a half ago in an industrial complex on Central Park Drive, off Godwin Drive in Manassas. Karlson said he chose the site over other locations in neighboring Prince William County due to the size of the building, which now houses a distillery, tasting, and bottling rooms.

The $50,000 in total grant monies — $25,000 from the city and $25,000 from the state — will allow the company to hire six new employees to work in the distillery. The increased production will mean KO will use 300,000 tons of grain per year to produce its product, up from the 100,000 tons it uses today.

Following the ramp-up in production of spirits, Karlson told Haymore the company would soon look to export its products to markets overseas.

The distillery will hold a one-year anniversary celebration that is open to the public at its tasting room located at 10381 Central Park Drive on September 12, 2016.