U.S. whiskey production has plunged to its lowest level since 2019, as distillers confront slumping demand, tariff headwinds and post-pandemic oversupply, The Lexington (Kentucky) Herald Leader writes.
Federal data shows 78 million proof gallons produced through April, down 28% from last year. Exports have collapsed, with Canadian boycotts helping drive a 70% year-over-year decline in April.
Despite cutbacks, inventories remain near 1.5 billion proof gallons—triple the level a decade ago—leaving brands under financial strain. Consumption has slowed sharply, with spirits sales dragged by inflation and changing consumer tastes.
Analysts say the industry correction has yet to bottom out. Layoffs and closures span the sector, from Brown-Forman to small Kentucky distilleries. Distressed brands are offloading barrels at steep discounts, eroding asset values and drying up financing for new production. Contract distillers have pulled back as banks hesitate to lend against depressed bourbon prices. Industry leaders warn that quick-profit entrants and weak balance sheets have deepened a punishing cycle.
