The American Whiskey Industry Is Getting A Much Needed Boost

Forbes

21-04-2025

The Kentucky Bourbon industry is a target of worldwide retaliatory tariffs.
The whiskey industry in the United States has entered a turbulent era marked by layoffs, declining sales, shifting consumer preferences, and an uncertain global marketplace. The announcement last week that industry darling Westward Distilling, one of the pioneers in the fledgling American Single Malt Whiskey movement, had filed for bankruptcy protection is a prime example. However, amid these difficulties, there lies an exciting industry that is helping to upend the discussion around whiskey worldwide.
Nowhere is this more evidenced than by the decision by the International Wine and Spirits Competition (IWSC), one of the world's oldest and most prestigious spirits competitions, to return to the United States for a second straight year to judge North American whiskies. Their team of highly respected judges will blind taste-test hundreds of American whiskies in Bardstown, Kentucky, from June 7-10, 2025. They will announce their results for the Best American Whiskies on June 16, 2025. The winners will go on to compete for the title of World's Best, which will be announced November 12, 2025, in London.
Coming to America again only makes sense to Dawn Davis, the head of whiskey judging for the IWSC and the person leading the American judging team. "I think we've only just scratched the surface of what American whisky can offer and the amazing liquid that its distillers are turning out," said Davies. "That's why we are here again to shine a spotlight on what is happening here and to help introduce it to the rest of the world. Outside of brands like Jack Daniels, Makers Mark, Buffalo Trace, and a few others, the world really doesn't know about all the amazing liquid being produced in America.'
Dawn Davis MW, the head buyer for The Whisky Exchange and the leader of the IWSC worldwide whisky judging team.
Shining a spotlight on America's whiskey couldn't come at a better time. After riding a wave of homegrown growth for over a decade, reaching a high point in production in 2022 when Kentucky distillers produced a record 2.7 million barrels, sales have softened. Growth has gone into negative territory, hitting -2% in 2024, according to a report from IWSR, and the current Trump tariffs are threatening the export market crucial for future growth.
While the massive growth in its craft distilleries has infused the U.S. market with innovation, it has also led to saturation, confusion for consumers, and increased difficulties for distillers in maintaining profitability. It resembles the craft beer market in many ways.
According to Davis, one of the key ways for brands to move forward successfully is to go back to the basics. They need to focus on telling consumers why their whiskey deserves attention and dollars. Sustainability, authenticity, and production techniques resonate with younger consumers and will help drive sales. Instead of rolling out fancy marketing programs, brands should educate drinkers about what makes their liquid special. That's where the IWSC and other respected judging competitions can help.
"It's a tough landscape for whisky distillers worldwide right now with the economic uncertainty and shifting consumer preferences," said Davies. "It is forcing the industry, especially in the United States, to adapt and get back to the basics of telling their story to drinkers and justify to them why they should reach for their bottle. Winning awards at events like IWSC can help brands break into new markets and influence buyers to bring in their whiskies."
Like last year, the IWSC will award gold and double gold medals across a variety of categories to North American distillers, with the highest-scoring bottles named the best. As expected, one of the strongest categories will be bourbon, with rye and blended whiskies also garnering significant attention. But it will be the American single malt category that both excites and worries Davis the most. As the first new whiskey category to be federally recognized in America in 52 years, it became official on December 18, 2024; it is almost completely unknown both inside and outside the United States.
"I think it's an unfortunate time for American single malt because it should be having its moment in the market, but the economic pressures are making it difficult for many distillers to thrive. Last year, we were introduced to some pretty amazing liquid that would thrive on the world stage," said Davis. "The potential is there, but the industry needs to ensure that these spirits receive the attention and appreciation they deserve."
The event is famous for unearthing often overlooked bottles for drinkers to grab. Last year, Coors Spirit Co, yes, that Coors, took home the top award in blended whisky while industry leader Bulleit grabbed the rye whisky award. But tiny Kentucky Peerless Distilling Company's victory in the bourbon category for its Toasted Kentucky Straight Bourbon Whiskey, which bested some well-known bottles, really turned heads. Thirteen-year-old Virginia Distilling Company showed the world what American single malt whiskey brings to the table.
For an industry in flux, the IWSC returning to Kentucky couldn't have happened at a better time. Hopefully, it will help distillers and an American whisky scene that is poised to take its place on the international stage.
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