THE alcohol industry has faced financial hardship in 2025, leading to several distilleries filing for bankruptcy as Americans are drinking at the lowest levels in history.

The most recent filing came with an Ohio-based distiller filing for Chapter 11 bankruptcy on December 22.

The alcohol industry has been hit with multiple bankruptcy filings, with A.M. Scott Distillery, a distillery in Troy, Ohio, following six other major distilleries seeking bankruptcy protection, according to USA TODAY.

Another filing came in August with Luca Mariano Distillery, located in Danville, Kentucky. Before that, two distilleries, JJ Pfister Distilling Co. of Sacramento, California and Devils River Distillery of San Antonio, Texas filed in May.

House Spirits Distillery of Portland, Oregon, filed for bankruptcy in April.

Two more companies declared bankruptcy in March: Boston Harbor Distillery of Boston, Massachusetts, and Lee Spirits Co. of Monument, Colorado.

DISTILLERY PROBLEMS EXPLAINED

Part of the reason behind these filings stems from a shift in consumer behavior as alcohol consumption in the U.S. is on a decline.

An August poll conducted by Gallup found that 54% of adults say they consume alcohol, which was down from 58% in 2024 and 62% in 2023.

Gallup said the 54% finding is “the lowest by one percentage point in Gallup’s nearly 90-year trend.”

The decline in consumption comes amid a growing belief that moderate alcohol consumption is bad for your health.

Gallup found that 53% of Americans said having one or two drinks a day is bad for one’s health, while 37% say it makes no difference and 6% say it’s good for one’s health.

The industry has faced additional challenges as trade tensions, including tariffs, have impacted exports.

The American Distilled Spirits Exports 2025 Mid-Year Report found that exports declined in several key markets, including the European Union, Canada, U.K. and Japan.

Beloved whiskey maker files for bankruptcy after up to $50 million debt comes to light

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“Persistent trade tensions are having an immediate and adverse effect on U.S. spirits exports,” Distilled Spirits Council of the United States CEO and President Chris Swonger said. “There’s a growing concern that our international consumers are increasingly opting for domestically produced spirits or imports from countries other than the U.S., signaling a shift away from our great American spirits brands.”

The export decline was most noticeable in Canada, where U.S. spirit exports fell 85%, which came after Canada imposed retaliatory tariffs on U.S. spirits.

Canada removed the tariff on September 1. However, most Provinces still have a ban on American spirits, keeping products off their shelves.

JIM BEAM HALTS PRODUCTION

Jim Beam, a popular Kentucky bourbon maker, announced on December 22 that it would pause production at its main distillery in January.

“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026,” the company said in a statement to The U.S. Sun.

Jim Beam is taking the “opportunity to invest in site enhancements,” and will continue distilling at two of its other Kentucky distilleries.

Jim Beam’s production halt comes amid struggles in the industry as a whole in addition to a barrel surplus stirring up trouble in Kentucky.

Kentucky hit an all-time high of 16.1 million aging barrels of bourbon in its warehouses in October, which “comes with a price that no other distiller in the world pays,” according to the Kentucky Distillers’ Association (KDA).

The KDA said Kentucky distillers are being hit with a “crushing” $75 million bill in aging barrel taxes this year, which is up 27% from 2024.

“But just as you can’t make Bourbon overnight, we won’t fix the problems we’re facing overnight. We must continue to work with policymakers to find solutions and ensure Bourbon’s long-term future,” KDA President Eric Gregory said.