Brown-Forman is to invest US$100 million in expanding the Jack Daniel Distillery.
The investment includes additional stills, barrel warehouses and infrastructure to support expanding operations.
Brown-Forman's investment is expected to result in 90 additional full-time jobs over the next five years. Construction on the expansion will begin this autumn and is expected to be completed within two years.
The distillery expansion will be located on distillery property in the Lynchburg area of Tennessee and tied to the same source of cave spring water used to make the whiskey.
The Tennessee Department of Economic and Community Development commissioner Bill Hagerty said: "The substantial expansion set to occur in the upcoming years is tremendous for the community and underscores Tennessee's number-one ranking for job growth in the south east. I appreciate the company's continued investment in the state and the jobs created from today's impressive announcement."
This year, with the support of Tennessee governor Bill Haslam, the Tennessee general assembly passed legislation designating that any whiskey labelled as "Tennessee whiskey" must be charcoal mellowed and produced in the state.
According to Brown-Forman, Jack Daniel's Tennessee whiskey has grown volume for 21 consecutive years and the Jack Daniel's family of brands grew global net sales by 9% in the last fiscal year.