Sonora Distillery, based in Blanco County, announced a $12 million expansion project this week that will add a second production facility near Dripping Springs. The move marks the company’s response to rising demand for its small-batch bourbon and rye whiskey lines.
The new 40,000-square-foot facility will increase production capacity by 60% within 18 months. Operations will include a larger copper still room, additional barrel storage for aging spirit, and expanded tasting room space. According to founder Marcus Hendricks, the expansion addresses ongoing supply constraints that have limited distribution beyond Texas and Oklahoma.
“We’ve been at capacity for two years,” Hendricks said in a statement. “Every batch sells through within weeks. This expansion lets us meet retailer orders that we’ve had to turn down.”
The Hill Country location offers operational advantages. Proximity to the original Blanco facility enables shared resources while maintaining separate production lines. The region’s water supply, drawn from underground aquifers, meets the company’s specifications for mash bill production.
Sonora currently produces 8,000 cases annually across its bourbon, rye, and gin lines. The company distributes through independent liquor retailers across central Texas, with selective placements in Austin and San Antonio markets. Craft spirit consumption in Texas has grown 14% year-over-year, according to industry data from the Distilled Spirits Council of the United States.
Local workforce expansion will include hiring 28 full-time production and warehouse staff. Training begins in September 2026. The distillery also plans to add educational tours and private barrel selection events at the new location.
Construction begins in June 2026. The facility is expected to be operational by October 2027.