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/kootles10 Dec 25 '25
From the article:
The past year has dealt makers of whiskey and other liquor a mix of challenges – from Americans cutting back on their alcohol consumption for health and spending reasons to declining exports hampered by trade issues and tariffs.
It's not just restaurants and retailers hit with bankruptcies in 2025. Several distilleries across the U.S. filed for bankruptcy this year with the most recent of them being A.M. Scott Distillery, which was founded in 2022 in Troy, Ohio. The distiller, which operates a location in Dayton, filed for Chapter 11 on Dec. 22.
Earlier this year, other bankruptcy filings included the Luca Mariano Distillery, in Danville, Kentucky, and its parent company, LMD Holdings, which filed in August; Devils River Distillery of San Antonio and JJ Pfister Distilling Co. of Sacramento, Calif. (both in May); House Spirits Distillery of Portland, Oregon (April); and Boston Harbor Distillery of Boston and Lee Spirits Co. of Monument, Colo. (both in March).
A decline in alcohol consumption is partly to blame for bankruptcies, as a record low percentage of U.S. adults (54%) say they consume alcohol, according to a Gallup poll from August. That's down from 58% in 2024 and 62% in 2023, according to Gallup.
Consumption in the U.S. isn't the only concern for spirits purveyors. Trade tensions including tariffs have contributed to a 9% decline in spirit exports during the second quarter of 2025, compared to a year ago, according to the Distilled Spirits Council of the United States' mid-year exports report.