It’s not surprising news with the recent trends, but it is sad.
In the past couple of years, there’s been a big move by Americans give up drinking. Whether it be for health reasons, or to try and save a buck, the collective decision is starting to hit the alcohol industry incredibly hard. And the younger demographic not being interested in consuming alcohol has sparked a lot of concern for even the biggest of distilleries.
According to a recent Gallup poll, the percentage of Americans who drink has fallen to a record-low of 54%. That is down tremendously from 67% in 2022. And when you look at young adults specifically, only 50% reported drinking alcohol. But that’s not the only issue for the alcohol industry.
For the very first time, a majority of those who were surveyed reported that they believe even moderate drinking is bad for your health.
The numbers and statistics behind those who are still drinking aren’t promising either. That same survey found that even the drinkers are cutting back. The average number of drinks consumed in a week was 2.8, another record low and down nearly 50% from the 5.1 drinks per week reported in 2003.
That’s resulting in quite the drop in demand for various forms of alcohol. So much so that distilleries are having to file for bankruptcy and shut down operations left and right.
The Ohio based A.M. Scott Distillery filed for Chapter 11 bankruptcy back in December, and they weren’t alone in doing so. Devils River Distillery of San Antonio and Boston Harbor Distillery of Boston (among many others) also filed for bankruptcy in 2025. If there was a “bourbon and whiskey boom,” it’s now officially going bust. Which is rather surprising, considering many distilleries were ramping up and expanding to keep up with demand just a couple of years ago.
Stoli Vodka and Kentucky Owl bourbon are the latest spirit producers to wave the white flag. It was last Friday when their parent company, Stoli Group, announced that both businesses would be liquidated. Stoli Vodka had risen in popularity because of it’s affordable price, and Kentucky Owl bourbon had developed a very passionate following… with bottles in their limited run selection even selling for north of $400 at some points.
Stoli Vodka and Kentucky Owl attempted to turn their business around after they got into some trouble following their public support of Ukraine, but they were unsuccessful (they even noted that a cyberattack negatively affected their production).
Not even recognizable producers like Jim Beam are safe from this issue, as they announced plans to pause production. Their Clermont, Kentucky distillery officially seized operation on January 1, and it will remain shuttered through the end of 2026. However, the visitors center will remain open and the company will still continue production at their Freddie Booker Noe craft distillery, as well as their Booker Noe distillery in Boston.
However, there won’t be any new Jim Beam produced in 2026, or other products that are produced at the main distillery in Clermont like Knob Creek, Baker’s, Booker’s and Basil Hayden’s. According to a statement from the company, it sounds like they’ve got plenty on hand to meet worldwide demand and plan to use the pause to make improvements to the distillery:
“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026. We’ve shared with our teams that while we will continue to distill at our (Freddie Booker Noe) craft distillery in Clermont and at our larger Booker Noe distillery in Boston, we plan to pause distillation at our main distillery on the James B. Beam campus for 2026 while we take the opportunity to invest in site enhancements.
Our visitor center at the James B. Beam campus remains open so visitors can have the full James B. Beam experience and join us for a meal at The Kitchen Table.”
So what’s the silver lining to this story? If you call yourself a bourbon or whiskey drinker, you shouldn’t have a problem finding the bottle you’ve been looking for… and you might even get it for a great deal. But it is a bit sad to see all of these spirit producers shuttering.
Stoli filed for bankruptcy last year:
