Kansas-based MGP Ingredients is preparing to pause production for at least a year at its two American whiskey distilleries in Kentucky.
One month on from booking a 24% slump in full-year sales from 2025, the company, which owns the Penelope, Rebel and Yellowstone bourbon brands, confirmed yesterday (7 April) the introduction of “temporary idling” at Limestone Branch Distillery and Lux Row Distillers in the state. The pause will commence on 1 May with a resumption estimated to be possible “as early as 12 months after that date”.
While the facilities’ other operations will continue, 33 employees will be affected by the break in distilling, with MGP saying it “is working directly with those impacted to support them through the transition”. Production at the company’s largest facility in Lawrenceburg, Indiana, is unaffected.
“The American whiskey market continues to be structurally oversupplied, with excess capacity and elevated inventory,” said MGP CEO Julie Francis. “Like many companies across the industry, we are navigating a challenging environment and taking steps to better align our operations with current inventory levels while supporting our efficiency and productivity goals.
“This decision was not made lightly. We are grateful for the contributions of our teams, committed to supporting those impacted, and remain confident these distilleries will continue to play an important role in our business in the future.”
At the end of December, Suntory Global Spirits confirmed a break in production at one of the two facilities that distils Jim Beam bourbon for all of this year. Almost ten months earlier, Diageo paused the distilling of Bulleit bourbon in Kentucky for an initial three months.
