Posted on 08/06/2025 3:03:09 AM PDT by dennisw
A wave of American whiskey distilleries are collapsing under the weight of mounting debt, falling demand, and rising global tensions — signaling a crisis for the once-booming industry.
The latest to fall the owner of the Luca Mariano Distillery in Danville, Kentucky, which filed for Chapter 11 bankruptcy last month with an estimated $25 million in debt.
Owner Francesco Viola said he hopes the business can 'emerge successfully, ideally with the support of its employees, customers, community and creditors.'
Luca Mariano follows the high-profile collapse of Garrard County Distilling, a $250 million independent Kentucky distillery that was placed into receivership and shut down in April after defaulting on debt.
And in late 2023, the iconic Kentucky Owl, founded in 1879, also filed for bankruptcy — citing slumping sales and a crippling cyberattack that halted operations.
Sales are drying up as price-sensitive and health-conscious American consumers pull back on spirits.
Campari-owned Wild Turkey saw an 8 percent decline in US sales during the first half of 2025, while Jack Daniel’s dropped 6 percent year-over-year.
In January, Jack Daniel's parent company Brown-Forman announced layoffs affecting 12 percent of its workforce and the closure of a major barrel-making facility in Louisville.
Jack Daniel's Tennessee Whiskey also fell 6 percent year-over-year, its latest report revealed.
'This has been an extremely difficult time for distillers across the country who are dealing with increased production costs, a slowdown in spirits sales in the U.S. marketplace, and a significant disruption to spirits exports due to threat of tariffs and retaliation related to ongoing trade disputes,
Another major hurdle for this industry is that Canada, the US spirits second largest export market, is keeping whisky off its store shelves in protest at Trump's punitive trade policies against the nation.
(Excerpt) Read more at dailymail.co.uk ...
Hard liquor pendulum swings again.
I’ll tell my brothers to drink more...I rarely touch the stuff...
People just don’t have that much cash to spend on “extras” and frivolous items. Ozempic also curbs your appetite for alcohol. Beer sales are also down.
Cocktails seemed pretty trendy a few years ago, but I get the feeling that Gen Z doesn’t drink much at all. Not all of them are old enough to drink, but some of them are close to 30 now. If the 20-something market isn’t there, it’s gonna hurt.
In 1913 the US income tax was passed. Before that the Federal Gov’t was funded by tariffs, alcohol and tobacco taxes. The ATF enforced these taxes and still does. (firearms taxes too)
“who are dealing with increased production costs”
BS, their costs are now not much more than before Covid.
“a slowdown in spirits sales in the U.S. marketplace.”
Yes because they would rather go bankrupt than lower their prices. They raised them during Covid and insist on keeping them up at Covid prices.
“and a significant disruption to spirits exports due to threat of tariffs and retaliation related to ongoing trade disputes,”
This is true, the lack of this market is hurting them. But only because they refuse to lower prices to sell more in our own market. Beer is the same way, it is 150% more than it should be.
The booze industry is pricing themselves right out of business. Many industries are doing that, they just absolutely refuse to go back to pre-covid sensible pricing.
I’ll Drink To That !!!
The Z’s smoke weed or vape and/or injest edibles. They head to the dispensary and make their purchases often with a medical card purchased by their parents yet most say they either don’t drink at all or hardly ever.
I mentioned this on another thread. Younger people don’t drink like they used to. Their choice of a buzz is weed. It is rampant. Weed produces a nice buzz with zero hangover. Plus booze has gotten expensive.
I agree. Jack Daniels especially is ridiculously priced.
I just read a few days ago that weed sales have dropped a lot recently too. I think they were selling well when states legalized it and too many stores opened and now prices and overall sales are going down a lot. Though I haven’t done much research on it.
Kids are into coolers. The distilleries should adapt by coming out a cooler variant of whiskies.
It is easy to judge industry price fixing and price gouging. Just judge their markup and pricing compared to Hot Dogs and Baloney. Before Covid they were $1 a package. During Covid they went to $1.50 a package. Now they dropped back down 25% to $1.25 a package. So this is only 25% more than before Covid. It should be close to the same across the board on all products as an average, not still 100% to 150%...
May not be popular but Trump is killing them.
Come on people! The DemonRATS need more drunken voters!!! Hrumpf! Hrumpf!
“Jack Daniels especially is ridiculously priced.”
It all is, I like to have a beer once in awhile. Some stores a six pack of decent beer is now almost $20. And they wonder why sales are down... The far too obvious price gouging insults intelligence...
Total wine has trouble keeping Evan Williams in stock.
The stuff is flying off the shelf.
Younger generation are definitely NOT bourbon and scotch drinkers!!!
They haven’t stopped selling in NC. Every time I go somewhere smells like they just got through burning one. 😎😂🤷♂️. You could be right.
Because Evan is a pretty good bourbon fairly priced. I can’t afford the others.
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