Innovation is an important factor for the economic development of the alcohol industry of Ukraine. The article analysis ways of implementing the strategy of innovation development of the alcohol industry of Ukraine based on the bioethanol production from agro raw materials. In particular, the economic-mathematical model of profit maximization has been developed, taking into account the norms of costs of the main basic types of resources for the production of bioethanol (from sugar beet, corn and wheat), indicators of the cost price of its production in accordance with each type of base resource and price. The algorithm of implementation of the innovative idea of biofuel production in the strategy of innovation development of the alcohol industry is developed, which will enable to take into account and verify all possibilities of realization of this innovative idea, taking into account financial and technological support of enterprises of the branch of the alcohol industry. Analysis of innovative development of the alcohol industry of Ukraine indicators makes it possible to determine the main directions of innovation as the basis of formation of the biofuel. It was investigated that the production of bioethanol has become promising, which is reflected in the effectiveness of the strategy of innovation development of the alcohol industry of Ukraine on the basis of its production from agro raw materials. And also outlines the main problems of the direction that need to be solved in the near future, which requires further systematic research.