As if the whiskey industry (or the state of Kentucky, for that matter) needed any more bad news.
With so many Kentucky distilleries closing recently…
It unfortunately sense that, at some point, the rest of the whiskey supply chain would be impacted.
So it’s no surprise that Jack Daniel’s parent company Brown-Forman has closed its cooperage (barrel-making plant) in Louisville, Kentucky earlier this year.
No surprise – but still a real blow to the local economy, especially the 210 hardworking employees who lost their jobs.
Brown-Forman is hoping to save $70-$80 million a year from closing the cooperage and additional layoffs throughout the company.
The cooperage was built in 1945 and has been a pillar of the Louisville community for 80 years – so this is a real blow.
But with the broader downturn in the alcohol market – and especially in whiskey – plus the collapse of alcohol exports to Canada as retaliation for the US starting the trade war…
These kinds of losses were unfortunately probably inevitable.
It seems likely that US businesses will continue suffering the consequences of US trade policy for the foreseeable future.
If you have any additional insights into what’s happening in the alcohol market and US production more broadly, please share in the comments!
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