Latest news with #GarrardCountyDistilling
Yahoo
5 days ago
- Business
- Yahoo
Popular Kentucky Whiskey Distilleries Are Filing for Bankruptcy—Here's What to Know
Popular Kentucky Whiskey Distilleries Are Filing for Bankruptcy—Here's What to Know originally appeared on Parade. U.S. whiskey sales seemed like a sure thing, growing year after year for two decade until 2023. This is the year the Distilled Spirits Council of the United States issued a report noting that U.S. whiskey sales had dropped by .4%, which seems like small potatoes in the grand scheme of things. However by 2024, the organization reported a further drop in American whiskey sales, this time to the tune of 1.8%. Now some popular Kentucky whiskey distilleries are filing for bankruptcy, and it's alarming for a few different notably is the loss of jobs when Kentucky distilleries either close up shop or drastically reduce production. Particularly considering the Kentucky Distillers' Association estimates that the state's whiskey and bourbon industry is valued around $9 billion. Which Kentucky whiskey distilleries are filing for bankruptcy? In July 2025, the parent company of Luca Mariano Distillery, LMD Holdings, filed for Chapter 11 bankruptcy. This distillery is located in Danville, Kentucky, that has a population of less than 18,000, according to the 2020 U.S. Census. The court documents filed by LMD Holdings cite they owe a "likely claim" of over $25 million to their largest creditor. It's worth noting this distillery just launched in June Garrard County Distilling, which is independently owned so has no parent company to fall back on, has been placed in receivership. This means that a court or bank has appointed a "receiver" to take control of the company's assets and operations. Garrard County Distilling closed in April 2025. They were located in Lancaster, Kentucky, a roughly 20 minute drive from Luca Mariano. Then there's the case of Stoli Group USA, who filed for bankruptcy in November 2024. While you might typically associate the name Stoli with vodka, they own Kentucky Owl whiskey, which, according to Whisky Advocate, had big plans to open Kentucky Owl Park in the city of Bardstown. The 420-acre center was designed to include a distillery as well as warehouses, a bar, restaurant, hotel and light railroad, which would have created a lot of local jobs. Fraught with delays from the start, now the entire project is shrouded in uncertainty. What's coming next for the U.S. whiskey industry? Currently, it's hard to say. On Reddit, some feel distilleries like Garrard County didn't catch on fast enough while whiskey was on a major upswing. "I think this will happen to a lot of these brands that tried to get in at the tail end of the boom," says Redditor murrayky 1990. "It'll be interesting to see how Blue Run's big investment plays out." To give this some context, Blue Run Kentucky Straight High Rye Bourbon is a small-batch whiskey. They're headquartered in Georgetown, Kentucky, just outside of Lexington. The same Reddit user went on to say they believe established brands will be fun, but quality is important for the industry newbies to make a name for themselves and survive. "Slick marketing/branding ain't cutting it anymore," they Kentucky Whiskey Distilleries Are Filing for Bankruptcy—Here's What to Know first appeared on Parade on Aug 5, 2025 This story was originally reported by Parade on Aug 5, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New York Post
5 days ago
- Business
- New York Post
Kentucky's $9B whiskey industry in crisis as Gen Z drinkers shun bourbon, tariffs take toll
Kentucky's legendary whiskey business is experiencing its worst crisis in decades, with major distilleries shutting down and thousands of jobs at risk as the industry struggles against declining sales, changing drinking habits among Gen Z consumers and damaging trade disputes. Three prominent Kentucky distilleries have collapsed into bankruptcy over the past eight months, marking a dramatic downturn for an industry that generates $9 billion annually for the state. LMD Holdings, which operates Luca Mariano Distillery, owes more than $25 million to creditors, while Garrard County Distilling faces nearly $26 million in debts. Advertisement Kentucky Owl, owned by international spirits company Stoli Group, has also filed for bankruptcy protection with millions in outstanding obligations. 4 Bottling lines stand idle at Kentucky distilleries as the state's $9 billion whiskey industry faces widespread shutdowns. Chance – The financial devastation extends far beyond individual companies. More than 23,000 workers across Kentucky's whiskey region depend on the industry for their livelihoods, with combined wages totaling $1.6 billion. Even established giants like Brown-Forman have eliminated hundreds of positions, while major producer Diageo has temporarily halted operations at Kentucky facilities. Advertisement The crisis stems from a dangerous combination of overproduction and rapidly shifting consumer preferences. During the bourbon boom of the 2000s, distilleries dramatically expanded production and investment, creating what industry experts now recognize as an unsustainable bubble. Kentucky currently stores over 14.3 million aging barrels of whiskey — more than two barrels for every person living in the state. This massive inventory buildup coincided with a sharp decline in demand. Advertisement American whiskey sales dropped 1.8% in 2024 to $5.2 billion, according to industry data. 4 Gen Z drinkers toast with lighter beverages, signaling a cultural turn away from high-proof spirits. Koldo_Studio – The problem has been made worse by younger drinkers, particularly those in Gen Z who are abandoning traditional high-proof bourbon in favor of ready-to-drink canned cocktails and lighter alcoholic beverages like hard seltzers. Social media platforms, especially TikTok, have accelerated this trend by promoting sweeter, lower-alcohol drinks as fashionable alternatives to whiskey. These viral trends have fundamentally changed how young adults view alcohol consumption, dealing a significant blow to bourbon's cultural appeal. Advertisement Alcohol use among young Americans has declined sharply over the past two decades, with the share of adults under 35 who drink falling from 72% in the early 2000s to 62% today. Binge drinking and underage drinking have dropped significantly, with Gen Z consuming 20% less alcohol per capita than Millennials did at the same age. Experts attribute the shift to growing health awareness, changing social norms, the rise of alcohol alternatives and economic or cultural forces shaping how younger generations view drinking. International trade disputes have created additional headaches for Kentucky producers who rely heavily on export markets. Canada, which purchases $40 million worth of Kentucky bourbon annually, imposed retaliatory tariffs earlier this year in response to President Donald Trump's levies on Canadian imports. 4 Historic distilleries across Kentucky, once booming, now struggle under the weight of overproduction and debt. Reagan – Trump's tariffs prompted Ontario retailers to remove American spirits from their shelves entirely. Michter's distillery alone lost $115,000 in cancelled Canadian orders. Advertisement The European Union presents an even larger threat, with plans to implement a 50% tariff on American whiskey that have been delayed several times in order to allow for trade negotiations to run their course. In 2020, the bloc imposed a 35% tariff on American whiskey, causing exports to drop precipitously. The financial pressure has exposed how many distilleries expanded too aggressively during the boom years, taking on risky debt loads that became impossible to manage as market conditions deteriorated. Advertisement Both startup operations and long-established companies have found themselves vulnerable to the sudden downturn. Industry leaders are now calling for major changes to help distilleries survive what they describe as a perfect storm of challenges. Proposed solutions include greater emphasis on sustainable production methods, expanded bourbon tourism experiences and development of ready-to-drink products that appeal to younger consumers. The crisis extends beyond distillery walls, threatening grain farmers who supply raw materials, tourism businesses that depend on bourbon trail visitors, and entire communities built around whiskey production. Advertisement 4 Aging barrels sit untouched, highlighting the deep inventory glut distilleries can't move fast enough. Jason Busa – Without significant changes in consumer behavior or resolution of trade disputes, Kentucky's signature industry faces a period of painful shrinkage. Industry analysts warn that conditions could deteriorate further if drinking trends continue moving away from traditional spirits and if international trade conflicts escalate. The state's bourbon heritage, built over centuries, now confronts an uncertain future that will require dramatic adaptation to survive.
Yahoo
03-04-2025
- Business
- Yahoo
Large, new Kentucky distillery closes amid $2.2 million lawsuit, liens
A large, new Kentucky distillery apparently is sitting idle amid financial difficulties, less than 14 months after filling its first barrel. Garrard County Distilling Co., which opened in January 2024, was sued for nearly $2.2 million in October in Garrard County Circuit Court by Doss & Horky, the general contractor that built the distillery at 450 Southern Soul Way in Lancaster. According to the lawsuit, the contractor also has placed a $2.2 million lien against Garrard County Distilling's property with the Garrard County Clerk's office. At least one other lien also has been reported. The distillery also has furloughed workers for at least two weeks, according to news reports by WLEX 18, which cited Lancaster Mayor Michael Gaffney. Gaffney was not immediately available for comment. The phone for the distillery appears to be disconnected; the distillery's parent company, Staghorn in Atlanta, did not respond to a request for comment. Founder Ray Franklin has left the company, according to a spokesman. 'We started building in 2020, and we were able to keep it quiet because of COVID,' Franklin said in a 2024 interview. 'We quietly built one of the largest all-new distilleries in the country.' According to WLEX, the distillery owes more than $250,000 in unpaid property taxes, due in April. The distillery is also suing supplier Kentucky Steel Buildings, Panels and Supply for more than $1.2 million over the collapse of a warehouse roof in February 2021, and American Industrial Contractors over the collapse of a crane in November 2022. Both cases are ongoing. The distillery is one of the largest independent operations in Kentucky, with two 45-foot by 36-inch column stills capable of filling up to 150,000 barrels a year, founder Ray Franklin said in 2024. The $250 million project by Atlanta-based spirits company Staghorn sits on 210 acres about 30 minutes south of Lexington, with a 50,000-square-foot distillery, 18 fermenters and three rickhouses. The company planned to build up to 24 25,000-barrel warehouses by 2030. 'We're swinging for the fence,' founder Franklin said in a 2024 interview. 'In my opinion, we've caught the golden age of distilling.' Garrard County Distilling in February 2024 named Lisa Wicker as its first distiller, luring her away from the Lyons Brewing & Distiling Co. in Lexington, owned by Alltech. Wicker left the company just a few months after her hiring. Garrard County also planned to offer contract distilling to other small labels. Gov. Andy Beshear welcomed the addition to Kentucky's bourbon landscape in a news release last year, saying, 'Garrard County Distilling Co. is Staghorn's first distillery and the dedication and size at which they are entering the category is a true testament to the worldwide appeal of bourbon from our great commonwealth. 'Staghorn's investment is a welcome addition to the Lancaster and Garrard County communities, as well as to Kentucky tourism. I want to thank the company's leadership for their vision to grow in the commonwealth, contributing to Kentucky's position as the bourbon capital of the world.' Parent company Staghorn sells All Nations Whiskey bourbon and rye, as well as Prohibition Reserve, a blend of rye and bourbon. The first releases were produced using barrels sourced from Wilderness Trail Distillery in Danville; last year, Staghorn had about 17,000 barrels of the original whiskey aging on site that they said would continue to be used while Garrard County's whiskey matured. The name is a nod to a poster that hung in many bars during Carrie Nation's temperance crusade in the late 1800s: 'All Nations Welcome Except Carrie.' Carrie (or Carry) Nation, a Kentucky native, was born in Garrard County, earning it the nickname 'the birthplace of Prohibition.' A member of the Woman's Christian Temperance Union in 1900, Nation gained fame as a hatchet-wielding crusader against alcohol, smashing bars in Kansas and Missouri. Franklin transported and reconstructed her Kentucky birthplace stone by stone to the distillery site for tourists to visit. The distillery's shuttering, at least temporarily, comes at a time when some other Kentucky bourbon makers also are pulling back on production amid industry uncertainty. Global spirits giant Diageo, which makes Bulleit bourbon in Kentucky, paused production at its Lebanon plant from February through June and is closing a bottling line at another facility. Brown-Forman, which makes Jack Daniel's Tennessee Whiskey and Woodford Reserve Premium Bourbon, in January laid off about 12% of its workforce (about 650 people) and permanently closed its Louisville cooperage. Bourbon makers say they've caught up with demand, need to 'get rid of these tariffs' KY man accused of illegally selling 1,700 bottles of bourbon to Fayette Mall store
