Jack Daniel's Forced To Halt Warehouse Construction Amid Black Fungus Controversy

Jack Daniel's Parent Company Has Halted Construction Of A New Barrelhouse Over Black Fungus Concerns.

Jack Daniel’s label isn’t the only thing black in Tennessee. And now that color is forcing the distiller of one of the world’s best-selling liquors to halt construction on a new barrel warehouse.

Lincoln County Chancellor J.B. Cox issued a court order that in effect keeps Jack Daniel’s parent company Brown-Forman Corp. from completing construction of a new barrelhouse over complaints by a local resident that ethanol vapors released from the aging whiskey are causing an epidemic of black fungus growth in the nearby community, Insider reported.

The fungus, called Baudoinia compniacensis, feeds off the distilling vapors released from wooden barrels of aging whiskeys, vodkas and rums, and can spur the growth of the splotchy black mold on building siding, metal signs, bricks, vehicles and plants. The vapor, dubbed “angel’s share” by the industry, is a common byproduct of the distilling process, The Guardian reported.

While the lawsuit filed by local residents Christi and Patrick Long doesn't involve Brown-Forman directly, the ruling is forcing the company to temporarily suspend work on the new barrel warehouse, which can store upward of 67,000 barrels of whiskey. Brown-Forman has plans for 14 more barrelhouses in the area, Insider reported.

The Longs alleged that the Lincoln County Planning & Zoning Department didn't enforce the need for ventilation systems in the warehouses to control vapor emissions, which has caused black fungus to propagate on their wedding venue and other properties, forcing them to spend $10K to power wash their structures.

The chancellor said the county didn't enforce its zoning laws for the construction of the barrelhouses and that the planning commission must grant site plan approval before construction can restart, Insider reported.

"If you have any decent nails on you and you rode it down the side of a tree or a property within a quarter of a mile to a half-mile of these barrel houses, your entire finger will be covered in black fungus," Patrick Long told Insider. "You can't see the tree limbs anymore. Our house, we have to have it pressure-washed four times a year now."

Jack Daniel’s, which is based in Lynchburg, Tennessee, produces 2 million barrels a year across 92 barrelhouses, according to the company’s website. Brown-Forman is in growth mode, having recently agreed to acquire Gin Mare and Mareliquid Vantguard ultra-premium gin brand for nearly $500M and the Diplomatico Rum brand from United Group and Destilerias Unidas Corp. for $725M. The company reported $2.1B in net sales for the six-month period ending in October, an increase of 11% from the previous year, Brown-Forman reported in a Securities and Exchange Commission filing.

Long’s attorney, Jason Holleman, told a Fox-affiliated news station that his clients were “pleased with the court’s ruling.”

“We are hopeful that their ultimate concerns about air quality and building safety will be addressed as the distiller now moves through the proper planning and building approval processes,” Holleman said.

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