And just like that, whiskey doesn’t seem like a great investment anymore.
More specifically, Kentucky – the heart of the American whiskey distillery scene, and of course the heart of the famous “Bourbon trail” – recently lost three distilleries as the US whiskey market goes through its first big contraction in over 20 years.
What’s going on
Alcohol has a well-deserved reputation as a sector that performs well to some extent regardless of the economy.
And up until now, that’s been especially true of whiskey, which saw expansions every year from 2002 to 2023, with a slight dip that year unfortunately serving as a “canary in the coalmine” for what was to come…
But let’s face it – while the alcohol market as a whole is incredibly resilient, there are still shifts within it.
Consumers – especially younger consumers – are trending toward ready-to-drink beverages, tequila, and even non-alcoholic spirits, so the overall pie for whiskey is shrinking.
(In fact, Whine & Spirits Wholesalers of America recently argued that overall whiskey consumption could decline almost 7% in the year ended June 2025.)
And we’re seeing evidence that whiskey’s current customers are polarizing into high-end spirits ($100+ bottles) and very cheap options (sub-$30 bottles), leaving a lot of messiness in the middle.
Which is exactly where a lot of these Kentucky distilleries have, unfortunately, been operating.
3 distilleries lost
The first sign that the wheels had really come off was when Kentucky Owl filed for Chapter 11 bankruptcy in late 2024. Kentucky Owl, after all, isn’t just any distillery – it’s owned by the Stoli Group, so it’s got a major corporate backer.
Unfortunately, that wasn’t enough to save it.
Next came Garrard County Distilling in Lancaster, KY – which was a real heartbreaker because the facility – which cost an estimated $250 million to build! – had only been open for a little over a year.
And finally, Luca Mariano Distillery in Danville, KY filed for bankruptcy last month – another heartbreaking loss for a state that needed some good news.
The real victims
As always, my heart goes out to three key groups:
The owners: You chased a dream in hopes of building a lasting brand, and I’m sorry it didn’t pan out.
The employees: You came in and did a great job – it’s not your fault that the business collapsed. I hope the next chapter of your career is kinder.
The customers: I hope you’re able to find another brand that you love as much as these.
You all deserved better than this.
If you ever went to these distilleries – or bought their products – drop a comment on this article and share a memory or two.
And if you have advice for the owners and employees as they try to find their next opportunity, we’d love to hear it in a comment as well.
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