LEXINGTON, Ky. — Global animal health and nutrition company Alltech, which has developed natural products to enhance animal health and performance for 31 years, could easily change its name to “All-Things Kentucky.”

The company has become synoymous with the state’s most recognized icons by sponsoring the “Olympics” of equine events in the Alltech FEI World Equestrian Games – and now, by becoming one of the newest distillers of spirits in Kentucky.

Alltech may be the new kid on the distillers’ block, but it has been in the business of brewing for more than a decade, by reviving a brewery that began in 1794, first creating a line of beer ales then moving into whiskey and bourbon production, something Kentucky is known for all over the world. Recently the company began construction on a new $4.5 million distillery adjacent to the brewery, where it will produce its bourbon and whiskey products.

“In a time of economic downturn, this distillery project is of great significance,” said Dr. Pearse Lyons, president and founder of Alltech. “Because of the success our beverages have experienced, particularly within the last few years, we are able to fund the future, not just for Alltech but the local community, through the creation of jobs.”

Lyons knows a little something about making a project successful in a bad economy. The 2010 equestrian games came during the worst downturn in the economy since the Great Depression, yet proved to be one of the most successful equine events in a state specializing in such events – including the Kentucky Derby.

The equestrian games held at the Kentucky Horse Park last year marked the first time a title sponsor was used and the first time the games were held outside of Europe. It won’t however, be the last affiliation Alltech will have with the event; the company has already signed on to be the 2014 sponsor of the games in Normandy, France.

Lyons also knows something about the spirits business, drawing on his native Irish roots and family history along with an education that includes a master’s in brewing and distilling and a Ph.D. in yeast fermentation.

Veronica Goff, the hospitality and events assistant for Alltech and Kentucky Ale, leads tours through the facility daily, sharing the history of the brewery along with the processes used to create premium spirits. She said the connection between the brewery and the animal health sector of the company is in the yeast.

“The common link between Alltech and the brewery is yeast, considering it is the main ingredient in all those all-natural supplements, and then it’s a strain of yeast we use here at the brewery to make our beers and our spirits,” she explained. “When you’re in the animal feed industry, the big marketing technique is going to various events and trade shows, and there is nothing that’s going to get people to your booth like giving away free beer. So originally the beer started out as a marketing tool.”

That technique proved to be successful for Lyons as his beers have moved from marketing to a regular staple in stores and pubs across the city and in many other states.

The brewery is also creating the first single malt whiskey to be made in the state since Prohibition ended, and will soon be releasing its first bourbon; hence, the distillery addition. The giant copper stills used to create the whiskey and bourbon are currently located in the brew house but will be moved to the new facility once it is completed.

According to information from the company, “Alltech’s Beverage Division, LLC, currently employs 34 people, 14 of whom were hired within the last year. The division’s continued expansion is expected to create a dozen additional jobs within the next year outside of construction.”

That economic boost spills over into agriculture, as well. The company uses grains from the region, including corn from Indiana and Ohio.

Whether it is the farmers or workers or consumers who benefit the most from distilleries, it is big business in Kentucky and a major contributor to the state’s economy. According to information from the Kentucky Distiller’s Assoc., the industry is responsible for nearly 10,000 jobs with an annual payroll of $442 million, and generates more than $125 million in state and local taxes every year.

The association also notes Kentucky’s bourbon manufacturers are investing nearly $190 million in capital projects, from new distilleries and warehouses to increased bottling and tourism facilities.

The new Alltech distillery project is expected to be ready by September 2012.