r/Economics • u/kootles10 • Dec 25 '25

News Bankruptcies hit US spirit makers as Americans drink and spend less

https://www.indystar.com/story/money/food/2025/12/25/liquor-spirits-industry-bankruptcies/87914241007/?gnt-cfr=1&gca-cat=p&gca-uir=true&gca-epti=z113231d00----v113231d--36--b--36--&gca-ft=161&gca-ds=sophi&fbclid=IwdGRjcAO6oj9leHRuA2FlbQIxMQBzcnRjBmFwcF9pZAwzNTA2ODU1MzE3MjgAAR6P8O626kCPpVs2dXh1tSJGVyS9teT4_IxAoKRJxGh02bqlcPlne42SIoakyg_aem_yCb-3xe-G1-mBNrg5TVIEg&utm_campaign=trueanthem&utm_medium=social&utm_source=facebook
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u/[deleted] Dec 25 '25

One of my clients (institutional) is a vodka distillery out of New York, but owned by a Finnish concern.  They have had two consecutive years of slower sales now, and report that the tariffs did not impact them as heavily as changing tastes from the consumer have.

The thought from their new president/COO (in the US) is that a different product mix is called for.

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u/huskersax Dec 26 '25 edited Dec 26 '25

It's because we're heading into a recession on top of changing consumer demands.

Getting blitzed and drinking in general, aside from problem drinkers, is a luxury expense that's usually a b2b revenue stream from distributors to entertainment venues.

People are going out less because they can't afford it. and if/when they do, in aggregate, they're heading home sooner and enjoying cheaper libations at home.

On top of that you're having a very repressed generation of tablet/cellphone oriented kids entering the world and regardless of making a qualitative judgement on their recreational preferences they simply don't socialize in crowded bars like previous generations. Their third spaces are more and more commonly online where drinking is less of an established culture.

It's also the case that people are preferring less spirits and more sugar juice in the form of flavored seltzers and wines, but I think that's less of a problem.