MGP Ingredients to pause Kentucky distillery operations amid weak whiskey demand
MGP Ingredients will idle two Kentucky distilleries as oversupply pressures the whiskey market, impacting 33 jobs while maintaining operations at its Indiana facility.
USA – MGP Ingredients has announced plans to temporarily pause distilling operations at two of its Kentucky facilities as it responds to declining whiskey demand and elevated inventory levels across the industry.
The U.S.-based company said production will be halted at Limestone Branch Distillery in Lebanon and Lux Row Distillers in Bardstown starting May 1. The decision is part of efforts to better align output with current inventory levels.
MGP indicated that operations at both sites could resume “as early as 12 months after that date” once inventory levels support renewed production. Distilling will continue at the company’s largest facility in Lawrenceburg, Indiana.
The temporary shutdown will affect 33 employees across the two Kentucky sites. The company said it is working directly with impacted staff “to support them through the transition.”
Despite the pause in distilling, other activities such as warehousing, bottling, and barrel programs will continue uninterrupted. Visitor centers at both distilleries will also remain open, offering tours, tastings, and retail experiences.
Limestone Branch produces brands including Yellowstone Select Bourbon and Minor Case rye whiskey, while Lux Row Distillers manufactures labels such as Ezra Brooks Bourbon and Daviess County Bourbon.
MGP Ingredients President and CEO Julie Francis said the decision reflects broader challenges facing the American whiskey market. “The American whiskey market continues to be structurally oversupplied, with excess capacity and elevated inventory,” she said.
“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,” Francis added.
“As a result, we have made the difficult decision to temporarily idle distilling operations at these two facilities.”
The company emphasized that the move is not expected to affect product availability for customers and clients.
MGP Ingredients produces distilled spirits, branded spirits, and food ingredients. Its distilled spirits portfolio includes bourbon, rye whiskey, vodka, and gin, which are supplied to other branded spirits manufacturers.
The company also reaffirmed its full-year 2026 guidance, projecting sales in the range of US$480 million to US$500 million, compared with US$536.4 million in 2025. The outlook reflects an “anticipated” decline in its Distilling Solutions division.
In addition to its operations in Indiana and Kentucky, MGP runs a tequila distillery in Arandas, Mexico, and bottling facilities in Missouri, Ohio, and Northern Ireland.
Limestone Branch and Lux Row Distillers became part of MGP’s portfolio following its US$475 million acquisition of Luxco in 2021.
The company has since invested significantly in expanding Lux Row, including US$12 million in barrel storage and US$4 million to increase production capacity.
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