Heaven Hill recently achieved its 2030 water efficiency goal five years ahead of schedule, marking a significant milestone in our 10-year Environmental Sustainability strategy. The achievement represents the first completed focus-area goal in our broader 2030 Environmental Sustainability plan with continued progress underway across other focus areas including waste reduction, emissions, and conservation.

The goal established in 2020 called for a 30 percent improvement in water use efficiency across Heaven Hill’s distilling operations. Internal verification of FY25 sustainability data confirmed the company exceeded that target in every month. Operations averaged 4.22 gallons of water per proof gallon produced, well below the original goal of 5.37 gallons.

“This is a really big moment for Heaven Hill Brands,” said Bethany Schagane, Environment and Sustainability Specialist. “Innovation is essential to improving efficiency in distillation. Our operations teams have developed smarter ways to manage water, helping protect natural resources while maintaining the quality and consistency behind every bottle.”

Much of the progress came from operations teams working directly in distilling and bottling processes, where most water is used. Engineers, operators, and maintenance teams across the company identified opportunities to improve efficiency while maintaining the quality standards that define Heaven Hill brands.

Every facility included in the 2020 baseline year improved water efficiency by more than 10 percent, including Black Velvet Distilling, Bernheim Distillery, Bardstown, and Deep Eddy Vodka. Distilleries that joined the company after the baseline was established, including Philadelphia Distilling, Widow Jane, FEW Spirits, and VAGO, have since contributed meaningfully to the Environmental and Sustainability strategy as well.

One of the most impactful improvements began with better visibility into how water moves through production. A metering project at Bernheim Distillery helped teams identify opportunities to reduce waste and improve efficiency. The project generated approximately $80,000 in savings in its first year while continuing to provide valuable data to inform operational improvements. Heaven Hill Springs Distillery was designed with advanced metering systems in place from the beginning, allowing teams to monitor water use closely.

Frontline engagement also played an important role. At Deep Eddy Vodka, daily huddle meetings encouraged employees to share ideas for reducing water use. Processing leads and bottling line operators identified opportunities to reduce water used during rinsing processes for tanks, piping, and bottling lines.

“Frontline input is essential for identifying real opportunities, and lasting results depend on clear, consistent practices across shifts,” said Deep Eddy Vodka Plant Manager Jason Wornell. “We will continue using daily huddles to review progress, set clear performance targets, and embed successful changes into our operating procedures.”

Heaven Hill also invested in equipment upgrades to improve efficiency. At Black Velvet Distilling, we replaced older softeners and reverse osmosis systems with modern equipment that significantly reduced reject water. We also increased the amount of water

“Upgrading those systems helped reduce the amount of reject water we generate,” said Jonathan Goldberg, Barrel Maturation and Yield Improvement Lead. “We have also increased the amount of water we recycle through the distillation process.”

Water is an essential resource in distillation and managing it responsibly is critical to the future of the industry. Achieving this milestone five years ahead of schedule and continuing to advance Heaven Hill’s 2030 Environmental Sustainability Strategy reflects our commitment to responsibly enhancing the enjoyment of life while acting as thoughtful corporate citizens and stewards of the natural resources that support thriving communities where we live and work.