Lofted Spirits president to leave company amid whistleblower lawsuit and layoffs
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- Pete Marino to leave at end of June; he is a defendant in a lawsuit.
- Former HR VP sued, alleging gender bias; Marino is among defendants.
- Industry sees production and sales declines, with layoffs and production cuts reported.
The president of troubled whiskey company Lofted Spirits announced he is leaving.
Lofted Spirits is the umbrella company over Bardstown Bourbon Co. in Bardstown, which is involved in an ongoing lawsuit alleging gender discrimination, and Green River Distilling Co. in Owensboro, which laid off its head distiller last month.
President Pete Marino is a defendant in the whistleblower discrimination lawsuit filed by the former human resources vice president, who has alleged a pattern of bias against female employees, among other issues.
Marino said in a post on LinkedIn that “after three years associated with Lofted Spirits, I have decided to leave my position as President at the end of June.”
“I have agreed to stay on as an advisor to continue supporting the commercial end of the business in any way I can after I wind down my operating role,” Marino wrote.
In February, Sylvia Sanders sued Bardstown Bourbon Co., Marino, Lofted Spirits, Lofted CEO Mark Erwin, Lofted’s owner Pritzker Private Capital and Pritzker operating partner Christian Brickman for violating employment laws through gender discrimination and other charges.
Pritzker Private Capital is owned by the prominent wealthy real estate family that includes Illinois Gov. J.B. Pritzker, a possible contender for the Democratic presidential nomination. Gov. Pritzker is not actively involved in the company.
Marino did not immediately respond to the Herald-Leader’s request for comment.
He said in his post that “it’s a tough company and industry to leave, but it’s the right decision and right time for me.”
Last month, Green River Distilling Co. laid off its head distiller and other layoffs have been rumored at both distilleries.
Marino was with Molson Coors before joining Bardstown Bourbon three years ago, first as a consultant. Under his tenure, the distillery expanded and now says it is the largest contract distiller in Kentucky.
A spokesperson for Lofted Spirits said in a statement that Marino’s departure is “wholly unrelated to litigation and other changes within the business.”
She did not say how many have been laid off at Bardstown Bourbon Co. and Green River Distilling.
“Like much of the American whiskey industry, we are making adjustments to meet current demand for contract whiskey,” said Holly Weyler, spokeswoman for Lofted Spirits. “We will continue to adjust for the market — whether that’s growing or shrinking. This is the reality of the industry, and we are building for the long term.”
Contract distilling business down
But contract distilling — producing whiskey and bourbon for client’s labels rather than bottling under the distillery’s brand — has come under significant pressure in the last few years as overproduction and declining sales have collided.
MGP Ingredients, another major contract distillery in Indiana, said in March that its contract whiskey business had been cut by more than half in the last year.
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.
In December, Jim Beam announced it would stop making bourbon at its home distillery for a year, although it has not revealed how much overall production has fallen. In March, the company said sales were down 2.4% for the first six months of its fiscal year.
The dramatic drop in whiskey production reflects the decline in sales seen by many major brands. Last year, the Distilled Spirits Council of the U.S. reported domestic sales were down 1%, about $100 million.
Diageo halted production through June at its Tennessee whiskey plant, home of George Dickel, as well as its Balcones plant in Texas. Last March, Diageo also paused production for several months in Kentucky at its Lebanon distillery and permanently closed a Crown Royal bottling operation in Canada in February 2026.
An economic impact report released in January by the Kentucky Distillers’ Association warned that overall job growth in the industry had already plateaued and that further declines in exports and in domestic sales would result in job losses for the now-$10.6 billion Kentucky industry.
Earlier this week, the Distilled Spirits Council reported that exports of American whiskey had fallen 19% in 2025, down $250 million due to President Trump’s ongoing trade war.
