In the heart of bourbon country and beyond, the whiskey business is facing some tough times. Distilleries that once rode high on pandemic-era sales are now grappling with empty shelves and red ink. Take A.M. Scott Distillery in Troy, Ohio – a newer player founded just back in 2022. They kicked off making bourbon, rye whiskey, gin, and other spirits, but now they're the latest to hit the wall, filing for Chapter 11 bankruptcy protection right before Christmas on December 22. It's a story that's playing out across the industry, where big names and small outfits alike are feeling the squeeze from folks drinking less, trade wars heating up, and costs piling on.
This isn't just some isolated hiccup. A.M. Scott listed assets around $500,000 but liabilities stretching from $1 million up to $10 million, with anywhere from 100 to 199 creditors knocking on the door. In their court filing down in the Southern District of Ohio, they pointed to rising costs, messy contract fights, and retail spots shutting down as the main culprits. Sales this year? Down a whopping 75 percent from last year. But they're not throwing in the towel – far from it. "While current year-over-year performance is down approximately 75 percent, the business is positioned for a strong rebound," they stated in the filing. "With a simplified structure, energized team, and revitalized brand strategy, A.M. Scott Distillery is well-positioned to emerge stronger and more sustainable than ever before." It's that kind of grit that keeps guys in the game, even when the odds look rough.
And A.M. Scott isn't alone in this mess. The list of distilleries seeking protection this year reads like a roll call of hard-luck stories. Back in August, Luca Mariano Distillery out of Danville, Kentucky, and its parent outfit LMD Holdings, went under Chapter 11. That one hit hard, with debts up to $50 million and over 50 lenders in the mix – their founder, Francesco Viola, even filed personally on December 12. Then there were the May filings from Devils River Distillery in San Antonio, Texas, and JJ Pfister Distilling Co. in Sacramento, California. April brought House Spirits Distillery from Portland, Oregon, into the fold. And March saw Boston Harbor Distillery in Boston, Massachusetts, along with Lee Spirits Co. from Monument, Colorado, both calling it quits on the solvency front. Even bigger players like Stoli Group USA, the folks behind the award-winning Kentucky Owl whiskey, have felt the pain.
Heck, it's not just the little guys. Jim Beam, that old reliable bourbon that's been a staple in bars and backyards for generations, dropped a bombshell on December 22. They're hitting pause on production at their main distillery in Clermont, Kentucky, starting January 2026 – and it's indefinite. No more firing up those stills for the whole year, at least. The company says they're sitting on a mountain of unsold barrels, and it's time to adjust. "We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026," they explained in a statement. They're using the downtime to spruce up the site with some enhancements, and they'll keep things rolling at two other Kentucky spots. But let's be real – when a giant like Jim Beam taps the brakes, you know the industry's in a rut.
So what's driving all this? For starters, Americans just aren't knocking back drinks like they used to. A Gallup poll from August laid it out plain: Only 54 percent of adults say they drink alcohol now, down from 58 percent in 2024 and 62 percent the year before. That's the lowest mark in Gallup's records going back nearly 90 years. Why the drop? Health worries are a big part. More than half – 53 percent – think even one or two drinks a day is bad for you, while just 37 percent say it doesn't matter and a measly 6 percent figure it's actually good. Guys who grew up with a beer after work or a whiskey on the rocks are rethinking that habit, maybe swapping it for a walk or something lighter. And then there's the "California Sober" crowd, ditching booze for cannabis drinks made from hemp – though that trend's got its own bumps ahead after the Hemp Farm Bill got axed in the latest funding deal.
But it's not all on the home front. Trade troubles are pouring salt in the wound. Those tariffs from the Trump era are still biting, especially with key partners like Canada. U.S. spirit exports tanked 9 percent in the second quarter of 2025 compared to the year before, per the Distilled Spirits Council of the United States. Canada alone saw an 85 percent plunge after slapping on retaliatory tariffs. Sure, the feds lifted theirs on September 1, but most provinces up north are still banning American spirits from shelves. That hurts when Canada's a massive market for our whiskeys. The council's mid-year report showed drops in the EU, UK, and Japan too. As Chris Swonger, the CEO and president over there, put it: "Persistent trade tensions are having an immediate and adverse effect on U.S. spirits exports. There’s a growing concern that our international consumers are increasingly opting for domestically produced spirits or imports from countries other than the U.S., signaling a shift away from our great American spirits brands."
Canadian businessman Kevin O'Leary, that sharp guy from "Shark Tank," didn't mince words on this. He called the U.S.-Canada spat a "self-inflicted mess" in a post on X. "When a major bourbon producer shuts down for a year, that’s not the market talking, that’s politics getting in the way of common sense," he said. "Tariff games" are hammering businesses on both sides, he added. It's the kind of straight talk that resonates when you're watching your favorite labels struggle because of policy squabbles.
Kentucky's feeling this extra hard. The state's got a record 16.1 million barrels of bourbon aging in warehouses as of October – more than ever before. But that surplus comes with a hefty tab. The Kentucky Distillers' Association points out it's "a price that no other distiller in the world pays" thanks to steep storage taxes. Big producers churning out volume have to foot that bill while waiting for sales to catch up, and right now, they're not. It's like having a garage full of classic cars you can't sell – nice to look at, but the upkeep's killing you.
The ripple effects go beyond just the distilleries. Take Staggemeyer Stave Company up in Minnesota – they've been crafting white oak barrel staves for whiskey and wine for over 50 years, but they filed Chapter 11 in October after years of money woes. Or Rogue Ales & Spirits, that popular beer brand with some spirits in the mix; they went Chapter 7 in November, shutting down breweries and restaurants cold, leaving employees in the lurch. They reported $19.6 million in debts against $5.6 million in assets. When suppliers and related businesses start folding, it shows how deep the trouble runs.
Looking back, the pandemic was a wild ride for booze makers. Sales spiked as folks stocked up and sipped at home, but now the party's over, and the hangover's real. Exports are down, domestic demand's soft, and costs for everything from grains to bottles are up. For the average guy who enjoys a pour after a long day, this means favorites might get pricier or harder to find. But it's also a wake-up call – maybe time to support local spots or think about what you're drinking. The industry's tough, though; these folks have bounced back before. With some smart moves on trade and a shift in habits, who knows? That rebound A.M. Scott's talking about could be just around the corner for the whole bunch. Still, right now, it's a sobering time for whiskey in America.
