MGP Ingredients announced it is idling whiskey production at Lux Row and Limestone Branch Distilleries in Kentucky for at least a year to balance inventory with demand. Provided
Another whiskey maker announced that it will temporarily shut down two Kentucky distilleries.
MGP Ingredients said in am April 7 news release it will idle its Limestone Branch Distillery in Lebanon and Lux Row Distillers in Bardstown to adjust production levels “to align with its current inventory levels.”
The Kansas-based company, which is publicly traded, said it will continue distilling at its Lawrenceburg, Ind., plant, which is its largest.
The Kentucky shutdowns will begin May 1, 2026. MGP said it “expects to resume distilling operations when inventory levels support additional production, which could be as early as 12 months after that date.”
MGP Ingredients announced it is idling whiskey production at Lux Row and Limestone Branch Distilleries in Kentucky for at least a year to balance inventory with demand. Provided
According to the news release, 33 employees will be impacted across the two facilities. MGP said it is working to support them through the transition.
Limestone Branch Distillery in Lebanon, Ky., will be stop production for at least a year but the visitors center, tours and gift shop with special releases will remain open. Provided
Other operations, including warehousing bottling and barrel programs, will continue and the visitor centers and gift shops at both distilleries will remain open and continue to offer tours, tastings, and sales including special releases and barrel selections.
“The American whiskey market continues to be structurally oversupplied, with excess capacity and elevated inventory. 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,” Julie Francis, president and CEO of MGP Ingredients said in the release. “As a result, we have made the difficult decision to temporarily idle distilling operations at these two facilities. 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.”
MGP Ingredients announced it is idling whiskey production at Lux Row and Limestone Branch Distilleries in Kentucky for at least a year to balance inventory with demand. Provided
In February, the company said in its fourth-quarter and year-end earnings announcement it had seen sales decline by 24% overall for the year, with contract whiskey distilling business down 53%.
Forecast sales for 2026 are expected to be down as well, the company said.
The company also took a $153 million asset impairment related to its spirits inventory.
MGP’s alcoholic beverage and specialty ingredient business has three main segments: branded spirits, distilling solutions and ingredient solutions. It’s known for producing high-quality bourbons and ryes that are produced under contract and sold under many labels.
It also has its portfolio of labels including Penelope, Rebel, Remus and Yellowstone bourbons and El Mayor tequila, which is under the Luxco umbrella.
In December, Jim Beam announced that it would be closing its home base distillery in Clermont for a year.
Green River Distilling in Owensboro recently laid off its head distiller amid rumored layoffs there and at sister distiller Bardstown Bourbon Co.
Diageo has halted production through June at its Tennessee whiskey plant, home of George Dickel, as well as at its Balcones plant in Texas. Last March, Diageo also paused production at its Lebanon, Ky., plant for several months.
Through August 2025, whiskey production was at its lowest level in years, down 28% from 2024 levels. Federal data shows that production was down by 55 million proof gallons from the same period one year earlier, the lowest eight-month production total since 2018.
This story was originally published April 8, 2026 at 9:29 AM.
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