Latest news with #FrancescoViola
Black America Web
5 days ago
- Business
- Black America Web
Whiskey Industry Shifts In Kentucky, With Some Distillers Declaring Bankruptcy
Kentucky has long hedged its bets on its revered whiskey industry, which, according to the Kentucky Distillers' Association, brings in around $9 million a year. With the whiskey industry shifting along with changing habits of imbibers, some Kentucky distillers have declared bankruptcy, while others are reporting slowed sales. A new report from Newsweek highlighted some of the struggles the whiskey industry in Kentucky is facing of late, emphasizing the financial woes of Luca Mariano Distillery, which just filed for Chapter 11 under its LMD Holdings business name. The outlet, speaking with the Distilled Spirits Council of the United States, obtained a statement from the association, which reads in part that the 'hardships facing distilleries are not unique to those just in Kentucky.' The statement rings true as there has been a trend among the younger generations of abstaining from drinking and preferring a 'dry' lifestyle by ditching booze, sometimes in favor of going 'California Sober,' which points to the ingestion of THC-based drinks. The non-alcoholic drink trend, also widely stylized as NA drinks, has exploded as a category over the past few years. We care about your data. See our privacy policy. According to the publication, Luca Mariano Distillery launched its operation just this past June and is housed on a 553-acre estate in the town of Danville. Francesco Viola, the brand's owner, told a local outlet, the Lexington Herald-Leader , that the filing is a strategy to solidify long-term success for the distillery. Other companies, such as Garrard County Distilling, are struggling as well after it was reported that the Lancaster-based brand was put under receivership and shuttered its operations in 2024. A Google search shows that the distillery is temporarily closed, but little else has been revealed about its future. Stoli Group USA, which produced the award-winning Kentucky Owl whiskey brand, filed for bankruptcy last year, as reported in great detail by Whiskey Advocate here. In a statement to Newsweek , the Distilled Spirits Council shared that the shakeup occuring right now for the Kentucky whiskey business has hit spirits producers of all sorts, hampered by rising costs for materials to produce the priduct, a drop in sales since the boom of the COVID-19 pandemic, and the looming threat of President Donald Trump's tariff policies that have halted trade and export between Canada and other nations that often purchase American spirits in bulk. — Photo: SEE ALSO Whiskey Industry Shifts In Kentucky, With Some Distillers Declaring Bankruptcy was originally published on
Daily Mail
6 days ago
- Business
- Daily Mail
Iconic American industry hit with wave of bankruptcies as companies scramble amid plunging demand
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. 'Recent indicators point to a moderation in growth prospects, with declining business confidence and rising economic policy uncertainty, exacerbated by escalating trade tensions,' the company said in its report. 'The United States's newly announced tariffs, and the threat of retaliatory measures, add to the United States beverage alcohol sector is among those at risk, while the full effects remain complex and unclear,' the report stated. The US announced EU imports would be hit with a 15 percent duty, but it is not yet clear what European tariffs on American goods will be. Jack Daniel's Tennessee Whiskey also fell 6 percent year-over-year, its latest report revealed. In January its parent company Brown-Forman said it would be eliminating roughly 12 percent of its workforce and closing one of its major barrel-making plants in Louisville, Kentucky. '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,' the Distilled Spirits Council of the United States told Newsweek. 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. Well-known Kentucky whisky business Garrard County Distilling collapsed in the spring It's not just Kentucky whisky that is suffering as a result of a general consumer pullback from alcohol. In June the largest alcohol distributor in the US has announced it is pulling out of California, blaming rising costs of doing business in the state. Texas-based Republic National Distributing has said that it will no longer do business in California after September 2. This has sent more than 2,500 drinks brands scrambling to find a new wholesaler and distributor in the state, which is famous in large part for its wine production. The departure of a wholesale giant from the largest wine market in the US is also a warning sign for an industry which is already struggling
Time of India
7 days ago
- Business
- Time of India
Why Kentucky's $9 billion whiskey industry is spiralling into bankruptcy?
The land of bourbon is facing a brutal hangover. Once a symbol of American pride and Kentucky's economic backbone, the whiskey business is stumbling under the weight of a sluggish market, shifting consumer preferences, and mounting debt. LMD Holdings, parent company of Luca Mariano Distillery, is the latest to file for Chapter 11 bankruptcy. Kentucky's bourbon boom hits a wall LMD Holdings, registered in Michigan but operating in Danville, Kentucky, is reportedly staring down a "likely claim of over $25 million" from its largest creditor. Some debts are disputed, but the financial weight is undeniable. Founder Francesco Viola said the filing was a move to "maximise asset value" and believes the company can rebound with enough community and stakeholder support. The Luca Mariano bombshell is not a one-off. Garrard County Distilling, a $250 million facility, went into receivership and shut down just months after launching in early 2024. And the Kentucky Owl brand under Stoli Group USA filed for bankruptcy in late 2023, citing weak U.S. spirits demand and a devastating cyberattack that wrecked operations. Even the titans are wobbling Not even bourbon giants are safe. Campari Group, the parent company of Wild Turkey and Russell's Reserve, reported an 8.1% drop in year-over-year sales. The blame? A "soft trend" in the U.S. market, particularly for flagship Wild Turkey. Add in job cuts at Jack Daniel's parent company and it is clear the whole industry is in flux. Tariffs, TikTok, and taste shifts Experts point to deeper issues: global tariffs hurting exports, inflation-strained wallets, and Gen Z drinkers pivoting to low-ABV options like hard seltzers. Suddenly, aged bourbon in fancy bottles is less appealing than a casual canned cocktail. Whether Kentucky's bourbon empire can sober up and reinvent itself remains to be seen. Viola remains hopeful, calling his business model "successful" despite the storm. But with more distilleries falling by the week, the industry may need more than just faith, it might need a full-blown reinvention.
Hindustan Times
7 days ago
- Business
- Hindustan Times
Kentucky whiskey bankruptcies: Which distilleries are broke, and why
Kentucky whiskey distilleries are finding operations are nowhere as smooth as the drinks they produce. Amid a gamut of problems, several distilleries have filed for bankruptcy. This January, Jack Daniel's parent company, Brown-Forman, announced that 12 per cent of its workforce was being let go. Image for representation.(Unsplash) As per the Kentucky Distillers' Association, the state's bourbon and whiskey industry is estimated to be around $9 billion. This comes amid an overall tough time for the American spirits and wine industry, which is seeing job cuts in an effort to remain profitable as the trading environment becomes more and more uncertain. This January, Jack Daniel's parent company, Brown-Forman, announced that 12 per cent of its workforce was being let go, and that they were shutting down a barrel-making plant in Louisville, Kentucky. So, which Kentucky distilleries have filed for bankruptcy? Kentucky distilleries that filed for bankruptcy LMD Holdings, the parent company of Luca Mariano Distillery, which is based out of Danville, filed for Chapter 11 bankruptcy. Court filings, accessed by Newsweek, show LMD Holdings has significant debt, including a "likely claim of over $25,000,000" which it owes to its largest creditor. Meanwhile, the Lexington Herald-Leader reported that some claims are under dispute. The filing came just weeks after it launched in June, with owner Francesco Viola telling the publication that the move meant to 'maximize the value of the assets for all stakeholders' and that the company was 'poised to emerge successfully, ideally with the support of its employees, customers, community and creditors.' This is not the only such case. Garrard County Distilling, a $250 million independent distillery, which started production in early 2024, was closed in April to settle unpaid debts. Also Read | Will tariff cuts give bourbon whiskey the boost it needs? Stoli Group USA filed for bankruptcy late in 2024, along with affiliate, the Kentucky Owl whiskey. Recently, the sale of Kentucky bourbon Wild Turkey has seen a slump as well. Campari Group, which owns the brand and its Lawrenceburg and Danville distilleries, reported in its half-year results that sales of Wild Turkey and Russell's Reserve fell 8.1 percent year-on-year 'due to a soft trend for Wild Turkey in its core United States market.' Why are so many distilleries filing for bankruptcy? Some of the challenges Kentucky distilleries are facing include cost-pressed consumers, shifting preference of young drinkers away from whiskey, and the potential impact of tariffs on sales in key export markets. Notably, these factors are also impacting other distilleries across the US. Stoli, meanwhile, filed for bankruptcy on the back of a sustained slowdown in spirits demand in the US, and a cyberattack that took down most of its operations, CNN reported.
Newsweek
04-08-2025
- Business
- Newsweek
Multiple Kentucky Whiskey Distilleries File for Bankruptcy
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Kentucky's storied whiskey business is facing significant difficulties, with a number of distilleries filing for bankruptcy amid mounting debt, falling demand and uncertain global trade conditions. Last month, LMD Holdings, the parent company of the Danville-based Luca Mariano Distillery, filed for Chapter 11 bankruptcy in the Eastern District of Michigan, where it is registered. Newsweek has contacted the company via email for comment. Why It Matters The state's bourbon and whiskey industry—estimated to be worth about $9 billion, according to the Kentucky Distillers' Association—is currently facing an array of challenges. Many, including cost-pressured consumers, shifting preferences among young drinkers away from whiskey and potential ramifications of tariffs on sales in key export markets, are also impacting the nationwide spirits industry and the thousands it employs nationwide. Bottles of whiskey on a shelf at a store on March, 15, 2025. Bottles of whiskey on a shelf at a store on March, 15, 2025. Peter Kneffel/picture-alliance/dpa/AP Images What To Know Court filings show that LMD Holdings is burdened with a significant amount of debt, including a "likely claim of over $25,000,000" owed to its largest creditor. Some of the claims are under dispute, according to the Lexington Herald-Leader. Owner Francesco Viola told the paper that the bankruptcy filing, which came only weeks after the distillery's June launch, was intended to "maximize the value of the assets for all stakeholders," and that the company was "poised to emerge successfully, ideally with the support of its employees, customers, community and creditors." The filing follows similar reports of other Kentucky distilleries facing financial difficulties. Garrard County Distilling, a $250 million independent distillery that began production in early 2024, has been placed in receivership and closed in April amid a failure to settle unpaid debts. Late last year, Stoli Group USA filed for bankruptcy along with its affiliate, the Kentucky Owl whiskey brand. That followed a sustained slowdown in spirits demand in the U.S., according to CNN, as well as a cyberattack that took down the majority of its operations. More recently, sales of the Kentucky bourbon Wild Turkey have slumped. In its half-year results, Campari Group, which owns the brand and its Lawrenceburg and Danville distilleries, reported that sales of Wild Turkey & Russell's Reserve had fallen 8.1 percent year-over-year "due to a soft trend for Wild Turkey in its core United States market." Beyond bankruptcies and financial difficulties, the American spirits and wine industry has also seen a number of companies cut jobs in an effort to stay profitable in an increasingly uncertain trading environment. In January, Jack Daniel's parent company, Brown-Forman, announced it would be eliminating about 12 percent of its workforce and closing a barrel-making plant in Louisville, Kentucky. What People Are Saying Luca Mariano Distillery owner Francesco Viola, in a statement to the Lexington Herald-Leader: "We filed to maximize the value of the assets for all stakeholders. Luca Mariano Distillery and LMD Holdings have a successful business model, have weathered the prior economic challenges in our industry, and are poised to emerge successfully, ideally with the support of its employees, customers, community and creditors."
