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New York Post
05-08-2025
- 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.
Local Spain
07-07-2025
- Politics
- Local Spain
Whistle-blowers and audits: How Spain's PM vows to stamp out corruption
Spain's Prime Minister Pedro Sánchez this weekend outlined a package of new anti-corruption measures at a Socialist (PSOE) federal committee meeting. The new rules are intended to move the party past a series of scandals implicating high-profile political figures and family members of Sánchez himself. Sánchez's wife, brother, attorney general and two of his former right hand men are being investigated for influence peddling or corruption. The allegations against Begoña Gómez, Sánchez's wife, and his brother, David Sánchez, have long been stuck in initial investigations and appear to be based on questionable legal cases. The so-called 'Koldo' scandal, however, which has so far led to the investigation of Sánchez's former Transport Minister José Luis Ábalos and the preventive imprisonment of former PSOE organisational secretary, Santos Cerdán, appears to be on a different legal level and has been incredibly damaging for Sánchez and his government. The damning leaked recordings of Ábalos and Cerdán laid bare the kickback for public contracts schemes allegedly operating at the heart of Spain's ruling Socialists. Investigations are ongoing but the recordings have put Sánchez's judgment into question. As such, faced with mounting calls to resign and call elections, Sánchez has attempted to take the problem head on, win some political oxygen and control the media narrative. The proposed new anti-corruption rules come just as the Socialists rolled the headline-grabbing measures, a ban on party officials hiring sex workers. The Socialists' new anti-corruption measures Though the full raft of measures have not yet been announced, Sánchez outlined the main thrust of the new anti-corruption strategy that will be adopted by the PSOE. A big part of this is strengthening 'the balance of power within the party', Sánchez said, promising more shared or co-held positions at the high ranks of the party to introduce a requirement of 'double signatures' to 'prevent an excessive concentration of power,' Sánchez said. Sánchez also proposed regulating the maximum time limits for resolving disciplinary proceedings 'with the obligation to act with the utmost diligence because the speed of these processes is the difference between success and failure,' he said, noting that the party took over a year to conclude the disciplinary proceedings against Ábalos. The Prime Minister also teased new rules to 'improve the governance of the party and guarantee its complete integrity' by creating new anti-corruption protocols. 'I propose drawing up an anti-fraud and anti-corruption protocol, an idea we have taken from the Catalonian Socialist party. It will incorporate new forms of control such as reports on compliance with tax obligations,' Sánchez explained. The Prime Minister also set a goal of updating the organisation's "transparency portal" before the end of the year so that all of this is publicly available. Article 43 of the PSOE's legal statutes will also be amended so that 'declarations of assets are also submitted to the regional ethics and guarantees committees.' This will increase transparency, Sánchez suggested, so that committees can 'forward them [declarations] to the federal committees, which may request updated information on assets, even on a random basis.' He also told the party committee that the PSOE's transparency rules should soon include 'recommendations made to us in the latest reports' by auditors in order to publicly provide all the financial and budgetary information within the party. Sánchez stressed as well that the party will guarantee the anonymity of potential whistle-blowers in order to 'provide protection' and ensure that all party officials 'have an obligation to report any irregularities within the PSOE.'
