Latest news with #DistilledSpiritsCounciloftheUnitedStates
Miami Herald
14-05-2025
- Business
- Miami Herald
Popular whiskey and wine company files for Chapter 11 bankruptcy
Declining consumer demand for alcoholic beverages has impacted the wine and spirits industries, causing some businesses to reorganize, shut down operations and sometimes file for bankruptcy. Wine industry metrics have flattened out in the last year after three decades of sustained growth, mainly driven by Baby Boomer consumers, according to Silicon Valley Bank's State of the U.S. Wine Industry Report 2025. Don't miss the move: Subscribe to TheStreet's free daily newsletter A reduction in wine consumption and a supply imbalance was influenced by a fundamental shift in consumer demographics along with resurgence of anti-alcohol campaigns, the report said. The reduction in demand was spurred by a decline in the "wine-friendly" Boomer population and a change in sentiment toward alcohol. Related: Popular vodka and gin brand files for Chapter 11 bankruptcy The alcoholic beverage market, the report said, is rotating out of over-60 aged consumers who index higher for wine purchases compared to other alcoholic beverage categories and stepping aside for consumers who index lower for wine. The spirits industry has also dealt with economic issues in the last year. Spirits supplier sales in the U.S. declined 1.1% in 2024 to $37.2 billion, the Distilled Spirits Council of the United States reported in its Annual Economic Briefing in February 2025. Economic issues forced major global distillery affiliate Stoli USA to file for Chapter 11 bankruptcy on Nov. 27, 2024, after financial distress led to a default on $78 million in secured debt owed to Fifth Third Bank NA. Craft spirits producer Boston Harbor Distillery, which makes whiskey, rum, gin, liqueurs, and distilled beer, on March 31, 2025, filed for Chapter 11 bankruptcy protection, seeking to reorganize its business. Also, the maker of Westward Whiskey, House Spirits Distillery LLC, filed for Chapter 11 bankruptcy on April 6, suffering from financial distress after over-expanding just before the liquor market contracted. Following House Spirits Distillery to bankruptcy court was Devils River Distillery LLC, which filed for Chapter 11 bankruptcy protection on May 1 to reorganize its business and continue operating. The San Antonio-based distiller of Devil's River Whiskey, which opened for business in 2017, makes five different bourbon whiskeys and a rye whiskey. The company distributes its liquor to 36 states, five countries, and cruise lines, offering premium and craft bourbons. Image source:Finally, fledgling spirits and wine provider Oracles Capital Inc., which operates as Oracles Craft Brands, filed for Chapter 11 facing financial distress. Related: Popular whiskey brand files Chapter 11 bankruptcy The Stuart, Fla.-based company, specializing in importing, distributing, and selling craft alcoholic beverage products, filed its Subchapter V petition on May 12 in the U.S. Bankruptcy Court for the District of Delaware. More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy The debtor filed its petition seeking to sell its assets, as it faced macroeconomic conditions and wine import tariffs that prevented it from raising new capital, Law360 reported. Oracles listed about $4 million in assets and over $342,000 in liabilities in its petition. Oracles Craft Brands, which was established in 2020, specializes in importing, selling, and distributing a variety of Italian, Greek and Portuguese wine brands, including Primaterra, La Maialina, and Quattro Mani from Italy, Kaldera from Greece, and Verday canned white wine from Portugal. It also sells and distributes ASM brand American single malt whiskey, which is made from 100% malted barley, pot distilled, aged for a minimum three years, and finished in sherry casks. Related: Popular liquor brand files for Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
08-05-2025
- Business
- Miami Herald
Popular vodka and gin brand files for Chapter 11 bankruptcy
Business Popular vodka and gin brand files for Chapter 11 bankruptcy The spirits distilling industry has faced economic challenges that have led to business closings and, in some cases, bankruptcy filings this year. Spirits supplier sales in the U.S. declined 1.1% in 2024 to $37.2 billion, the Distilled Spirits Council of the United States reported in its Annual Economic Briefing in February 2025. Slower sales led to financial issues and sometimes bankruptcy for companies. Don't miss the move: Subscribe to TheStreet's free daily newsletter Financial problems forced a major global distillery affiliate to file for bankruptcy late last year, as Stoli USA, a subsidiary of vodka giant Stoli Group, filed for Chapter 11 protection on Nov. 27, 2024, after financial distress led to a default on $78 million in secured debt owed to Fifth Third Bank NA. Related: Popular whiskey brand files Chapter 11 bankruptcy Following Stoli's bankruptcy, slower sales carried over into 2025 and resulted in several smaller U.S. spirits distillers marching into bankruptcy court to file for Chapter 11. Craft spirits producer Boston Harbor Distillery, which makes whiskey, rum, gin, liqueurs, and distilled beer, on March 31, 2025, filed for Chapter 11 bankruptcy protection, seeking to reorganize its business. Samuel Adams brewer Boston Beer Company's co-founder Rhonda Kallman, a leader in the craft beverage industry, established the Dorchester, Mass.-based distiller in 2012. More whiskey distillers file for bankruptcy The maker of Westward Whiskey, House Spirits Distillery LLC, filed for Chapter 11 bankruptcy, suffering from financial distress after over-expanding just before the liquor market contracted. House Spirits filed its Subchapter V petition in the U.S. Bankruptcy Court for the District of Delaware on April 6, 2025, listing $1 million to $10 million in assets and debts. Devils River Distillery LLC and an affiliate filed for Chapter 11 bankruptcy protection on May 1 to reorganize their business and continue operating. The San Antonio-based distiller of Devil's River Whiskey, which opened for business in 2017, makes five different bourbon whiskeys and a rye whiskey. The company distributes its liquor to 36 states, five countries, and cruise lines, offering premium and craft bourbons. Image source:JJ Pfister Distilling files bankruptcy after closing down Finally, Sacramento-based spirits manufacturer JJ Pfister Distilling Co. has filed for Chapter 11 bankruptcy protection to reorganize about $1.6 million in debts six months after closing its business operations. Related: Popular liquor brand files for Chapter 11 bankruptcy The organic craft spirits distiller filed its petition in the U.S. Bankruptcy Court for the Eastern District of California, listing up to $50,000 in assets and $1 million to $10 million in debts. More bankruptcies: The debtor's largest creditors include Fite Bypass Trust, owed over $453,000; Bank of America, owed over $86,000; Overton Funding, owed over $76,000; and various tax authorities. The liquor distiller opened its business in April 2018 and manufactured several spirits, including vodka, gin, rum, rye whiskey, rye bourbon, drakas, apple brandy, and pear brandy. JJ Pfister's liquor was distributed in Arizona, California, and Nevada and sold at retailers, such as Total Wine, BevMo, Nugget Markets, Raley's stores, Young's Market, and Vin Sauvage stores. The company closed its distillery and tasting room in November 2024 and plans to market its assets for sale, the Sacramento Business Journal reported. Representatives of JJ Pfister could not be reached for comment as the distiller's phone number and website were not operational on May 7. Related: Another popular whiskey brand files for Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc. This story was originally published May 7, 2025 at 7:48 PM.
Miami Herald
03-05-2025
- Business
- Miami Herald
Popular whiskey brand files Chapter 11 bankruptcy
Spirits distillers have been forced to reorganize their businesses and restructure debt, sometimes filing for bankruptcy, after rising operating costs from inflation and a decrease in consumer spending on alcohol after the Covid-19 pandemic led to a decline in profits. Problems this year were preceded by financial issues in 2024. Spirits supplier sales in the U.S. declined 1.1% in 2024 for a total of $37.2 billion, the Distilled Spirits Council of the United States reported in its Annual Economic Briefing in February 2025. Don't miss the move: Subscribe to TheStreet's free daily newsletter Stoli USA, which distills vodka and other spirits, finished last year filing for Chapter 11 bankruptcy on Nov. 27, 2024, after financial distress led to a default on $78 million in secured debt owed to Fifth Third Bank NA. Related: Another popular whiskey brand files for Chapter 11 bankruptcy Craft spirits producer Boston Harbor Distillery, which makes whiskey, rum, gin, liqueurs, and distilled beer, on March 31, 2025, filed for Chapter 11 bankruptcy protection, seeking to reorganize its business. The Dorchester, Mass.-based distiller was established in 2012 by Samuel Adams brewer Boston Beer Company's co-founder Rhonda Kallman, a leader in the craft beverage industry. House Spirits Distillery LLC, which makes Westward Whiskey, filed its Chapter 11 Subchapter V petition on April 6 in the U.S. Bankruptcy Court for the District of Delaware, listing $1 million to $10 million in assets and debts. The company filed its petition, suffering from financial distress after over-expanding just before the liquor market contracted, the company's CEO Thomas Mooney told Breaking Bourbon, TheStreet's Dan Kline reported. Tacoma, Wash.-based McCallum & Sons Whisky Co., a premier boutique Scotch whisky and cognac bottle shop, revealed on its website that it is liquidating its inventory and closing permanently on April 30, 2025. The company did not indicate whether it will file for bankruptcy. McCallum & Sons in January posted a message on social media revealing that it was closing and liquidating its business. "Closing. After much deliberation, we have decided to close the doors of McCallum & Sons Whisky Co. on April 30, 2025. We have appreciated you all being part of this journey with us," the message said. And now, popular whiskey brand Devils River Distillery LLC and an affiliate filed for Chapter 11 bankruptcy protection to reorganize their business and continue operating. Related: Popular whiskey brand files for Chapter 11 bankruptcy The San Antonio-based distiller of Devil's River Whiskey, featuring five different bourbon whiskeys and a rye whiskey, opened for business in 2017 and has expanded to 36 states, five countries, and cruise lines offering premium and craft bourbons. More bankruptcies: Popular restaurant and bar chain files for Chapter 11 bankruptcyPopular athletic shoe chain files for Chapter 11 bankruptcyAward-winning cosmetics brand files for Chapter 11 bankruptcy The debtor listed $1 million to $10 million in assets and liabilities in its Subchapter V petition filed on May 1 in the U.S. Bankruptcy Court for the Western District of Texas. Its largest unsecured creditors include McDermott, Will & Emory, owed over $317,000; Sazerac, owed over $258,000; AREA Real Estate, owed over $132,000 and Romph & Pou Agency, owed over $83,000. The debtor is expected to have funds available to distribute to its unsecured creditors. Devil's River Whiskey's products include Bourbon Whiskey, Barrel Strength Bourbon, Coffee Bourbon, Agave Bourbon, Cinnamon Bourbon, Single Barrel Straight Bourbon, and Rye Whiskey, which are available at 100s of restaurants and retail locations in 36 states. Related: Popular liquor brand files for Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
NBC News
24-04-2025
- Business
- NBC News
American liquor exports hit record high in 2024, driven by tariffs
U.S. spirit exports reached a record $2.4 billion in 2024, driven in large part by tariff concerns and ongoing global trade disputes. That is according to the American Spirits Exports report published by trade association the Distilled Spirits Council of the United States on Thursday. 'U.S. spirits exports hit a new high in 2024, recapturing lost market share since the UK and EU lifted retaliatory tariffs that were applied between 2018-2021,' said DISCUS President and CEO Chris Swonger. 'Unfortunately, ongoing trade disputes unrelated to our sector have caused uncertainty, keeping many U.S. distillers on the sidelines and curtailing sales growth.' U.S. spirits exports to the EU surged by 39%, fueled by concerns over the potential return of a 50% tariff on American whiskey imports in 2025, which was suspended in 2022. In March, Trump threatened to put 200% tariffs on French Champagne and other EU spirits, which led European world leaders — specifically from Ireland, France and Italy — to advocate for bourbon tariffs not to return as part of retaliatory measures. The threat of that specific tariff has faded somewhat as the U.S. and EU continue trade negotiations. Approximately 50% of U.S. spirits were exported to the EU — totaling $1.2 billion — making it the largest export market. Exports to the rest of the world, however, declined by nearly 10%, the report found, which reflects the broader softening alcohol category. Suntory Beam, the Japanese maker of Jim Beam bourbon whiskey, said in December it was preparing for tariffs by stockpiling supply in Europe. The company is already heavily reliant on France and the United Kingdom, which make up over 50% of its global exports market over the last eight years, according to global trade data from Panjiva. Several of the top states for exports in 2024 are significant bourbon economies, according to the report. Top 5 states exporting U.S. spirits: Tennessee ($934 million) Kentucky ($751 million) Texas ($354 million) Florida ($334 million) Indiana ($142 million) Still, American whiskey exports, which accounted for 54% of all U.S. spirits exports, dipped 5.4% to $1.3 billion. Swonger said that while outlook for spirits remains highly unpredictable with ongoing trade disputes, one fact rings true in the data: Exports go to countries that have eliminated tariffs. 'We are thankful for President Trump's early success in securing India's reduction of its tariff on Bourbon from 150% to 100%,' Swonger said. 'It's our hope that the administration builds on this positive momentum by securing additional tariff reductions in India and reducing trade barriers in other countries.' Headwinds remain for the industry. Canada, the second largest market for U.S. spirits exports, imposed a 25% tariff in on alcohol coming over the border in March, and several provinces have removed product from shelves. Constellation Brands, which lowered long-term 2027 and 2028 guidance significantly around ' the anticipated impact of tariffs.'
CNBC
24-04-2025
- Business
- CNBC
American spirit exports hit record high in 2024, driven by tariffs
U.S. spirit exports reached a record $2.4 billion in 2024, driven in large part by tariff concerns and ongoing global trade disputes. That is according to the American Spirits Exports report published by trade association the Distilled Spirits Council of the United States on Thursday. "U.S. spirits exports hit a new high in 2024, recapturing lost market share since the UK and EU lifted retaliatory tariffs that were applied between 2018-2021," said DISCUS President and CEO Chris Swonger. "Unfortunately, ongoing trade disputes unrelated to our sector have caused uncertainty, keeping many U.S. distillers on the sidelines and curtailing sales growth." U.S. spirits exports to the EU surged by 39%, fueled by concerns over the potential return of a 50% tariff on American whiskey imports in 2025, which was suspended in 2022. In March, Trump threatened to put 200% tariffs on French Champagne and other EU spirits, which led European world leaders — specifically from Ireland, France and Italy — to advocate for bourbon tariffs not to return as part of retaliatory measures. The threat of that specific tariff has faded somewhat as the U.S. and EU continue trade negotiations. Approximately 50% of U.S. spirits were exported to the EU — totaling $1.2 billion — making it the largest export market. Exports to the rest of the world, however, declined by nearly 10%, the report found, which reflects the broader softening alcohol category. Suntory Beam, the Japanese maker of Jim Beam bourbon whiskey, said in December it was preparing for tariffs by stockpiling supply in Europe. The company is already heavily reliant on France and the United Kingdom, which make up over 50% of its global exports market over the last eight years, according to global trade data from Panjiva. Several of the top states for exports in 2024 are significant bourbon economies, according to the report. Top 5 states exporting U.S. spirits: Still, American whiskey exports, which accounted for 54% of all U.S. spirits exports, dipped 5.4% to $1.3 billion. Swonger said that while outlook for spirits remains highly unpredictable with ongoing trade disputes, one fact rings true in the data: Exports go to countries that have eliminated tariffs. "We are thankful for President Trump's early success in securing India's reduction of its tariff on Bourbon from 150% to 100%," Swonger said. "It's our hope that the administration builds on this positive momentum by securing additional tariff reductions in India and reducing trade barriers in other countries." Headwinds remain for the industry. Canada, the second largest market for U.S. spirits exports, imposed a 25% tariff in on alcohol coming over the border in March, and severalprovinces have removed product from shelves. Distiller and brewers also face steel and aluminum tariffs that impact materials costs for brewers like Constellation Brands, which lowered long-term 2027 and 2028 guidance significantly around "the anticipated impact of tariffs."
