Sun Dec 28 14:30:00 UTC 2025: Summary:

The spirits and brewing industries are facing a challenging 2025 due to declining alcohol consumption, trade tensions, and increasing costs. Several distilleries and breweries have filed for bankruptcy, including A.M. Scott Distillery, Luca Mariano Distillery, Devils River Distillery, JJ Pfister Distilling Co., House Spirits Distillery, Boston Harbor Distillery, Lee Spirits Co., Rogue Ales & Spirits and Iron Hill Brewery & Restaurant. A record low percentage of U.S. adults are consuming alcohol, and those who do are drinking less. Trade tensions, particularly tariffs, have led to a decline in spirit exports, especially to Canada. Jim Beam is pausing operations at its main distillery. While traditional alcohol sales are down, ready-to-drink cocktails and non-alcoholic beverages are experiencing growth. Consumers are cutting back on alcohol consumption due to health concerns and budget constraints.

News Article:

Distillery and Brewery Bankruptcies Surge as Alcohol Consumption Declines

Troy, OH – The spirits and brewing industries are facing a harsh reality as 2025 draws to a close, with several distilleries and breweries across the United States declaring bankruptcy. The latest casualty is A.M. Scott Distillery in Troy, Ohio, which filed for Chapter 11 bankruptcy on December 22nd. Other notable bankruptcies this year include Luca Mariano Distillery, Devils River Distillery, JJ Pfister Distilling Co., House Spirits Distillery, Boston Harbor Distillery, Lee Spirits Co., Rogue Ales & Spirits and Iron Hill Brewery & Restaurant.

This wave of financial distress is attributed to a combination of factors, including a significant decline in alcohol consumption among Americans. A recent Gallup poll revealed that only 54% of U.S. adults consume alcohol, down from 62% in 2023. Additionally, those who do drink are consuming less, with an average of just 2.8 drinks per week.

“Changing consumer behaviors, retailer rationalization, cost increases due to inflation and tariffs, and more competition than ever have been compounding difficulties in 2025,” said Matt Gacioch, staff economist at the Brewers Association.

Adding to the industry’s woes are ongoing trade tensions and tariffs, which have led to a 9% decline in spirit exports during the second quarter of 2025. Exports to key markets like the E.U., the U.K., and Japan have fallen, but the most dramatic drop has been in exports to Canada, plummeting 85%.

The situation has become so dire that even industry giants are feeling the impact. Jim Beam announced it would pause operations at its main distillery in Clermont, Kentucky, indefinitely, starting in January 2026.

However, not all segments of the market are struggling. Ready-to-drink cocktails have seen a modest increase in sales, and the non-alcoholic beverage sector continues to boom, fueled by health-conscious consumers and those seeking alternatives due to budget constraints. Sales in the non-alcoholic category rose 27% in 2024 to over $800 million.

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