Kentucky's bourbon industry is facing some major struggles

Recent articles chronicle a challenging period for the Kentucky bourbon industry, marked by declining sales and financial struggles. Common threads among these reports include decreased demand, changing consumer preferences, and economic factors like tariffs impacting trade.

Several articles point to a drop in American whiskey sales, with brands like Wild Turkey and Bulleit seeing significant declines. Diageo reported that Bulleit's sales fell 7.3%, indicative of consumers shifting towards tequila and flavored drinks.

Wild Turkey sales, under Davide Campari, dropped 8.1%, despite launching new products.

Economic factors like tariffs also contributed to the financial uncertainty for brands like Uncle Nearest, which is currently in receivership due to massive debts.

Catch up with the stories below.

Bulleit bottles snaked their way down the assembly line to be sealed and labeled at the Stitzel-Weller facility.

NO. 1: ARE LAYOFFS COMING TO DIAGEO’S KENTUCKY DISTILLERIES? WHAT WE KNOW

As a wide array of President Trump’s tariffs kick in this week, some companies are expected to trim costs by shedding employees. | Published August 7, 2025 | Read Full Story by Janet Patton

Bulleit Bourbon Barrel Strength Bourbon has more intense notes of butterscotch, fruit and wood than regular Bulleit Bourbon. By Charles Bertram

NO. 2: ANOTHER KENTUCKY WHISKEY BRAND REPORTS A BIG DROP IN BOURBON SALES

Another major Kentucky distiller has reported a big drop in bourbon sales. | Published August 6, 2025 | Read Full Story by Janet Patton

Wild Turkey 101 8-Year-Old Bourbon is returning to shelves in Kentucky and elsewhere in the U.S. for the first time in nearly three decades.

NO. 3: SALES SLUMP 8% FOR KENTUCKY BOURBON WILD TURKEY DESPITE NEW RELEASES

In what might be the clearest sign yet that bourbon demand in the U.S. | Published August 4, 2025 | Read Full Story by Janet Patton

Farm Credit Mid-America of Louisville sued Nearest Green and Uncle Nearest Distillery in Tennessee, as well as founders Fawn and Keith Weaver, alleging default on $100 million in loans and seeking the appointment of a receiver to run the company. But the Weavers are opposing the move, saying they are victims of fraud.

NO. 4: KENTUCKY LENDER SUES DISTILLERY NEAREST GREEN. CEO SAYS THEY’RE VICTIMS OF FRAUD

Another prominent distiller is in financial turmoil: | Published August 4, 2025 | Read Full Story by Janet Patton

Nearest Green founder and CEO of Uncle Nearest Fawn Weaver posted an online rebuttal to the allegations in a lawsuit filed by a Kentucky lender seeking to have a receiver appointed for the distillery.

NO. 5: COULD BANKRUPTCY BE IN THE WORKS FOR A POTENTIALLY INSOLVENT WHISKEY START-UP?

What’s next for Uncle Nearest, the troubled whiskey brand heading into receivership? | Published August 15, 2025 | Read Full Story by Janet Patton

A rendering of the Kentucky Owl Park designs released by Stoli Group from Shigeru Ban Architects, who have been chosen to create the new bourbon distillery and tourist destination in Bardstown. By Rendering from Shigeru Ban Architects/Stoli Group

NO. 6: A KENTUCKY BOURBON WANTS TO COVER BANKRUPTCY DEBT WITH WHISKEY. BANK SAYS NO

The future of a cult Kentucky bourbon hangs in the balance. | Published August 27, 2025 | Read Full Story by Janet Patton

Publix Liquors, adjacent to Publix Super Market, shown during a sneak peek of Lexington’s first Publix grocery store, March 3, 2025 in Lexington, Ky. The 3,200-square-foot liquor store will offer beer, wine, and spirits such as Kentucky-made bourbons. By Brian Simms

NO. 7: BLAME CANADA? THE PARTY’S OVER FOR KENTUCKY BOURBON. AT LEAST FOR NOW

Bourbon’s biggest annual party, the Kentucky Bourbon Festival, roars into Bardstown the first weekend in September, with samples to taste, master distillers to meet and rare bottles to line up for. | Published September 3, 2025 | Read Full Story by Janet Patton

NO. 8: BOURBON DISTILLER’S MEDIATION BID REJECTED. JUDGE: FOUNDER’S COMMENTS ‘TROUBLING’

A bid by Uncle Nearest founder Fawn Weaver to send the distressed whiskey brand to a mediator and potential sale has been rejected. | Published August 22, 2025 | Read Full Story by Janet Patton

Limestone Farms Distillery in Georgetown is facing more than $2 million in liens and a lawsuit over unpaid bills. By Tasha Poullard

NO. 9: KY BOURBON ASSOCIATED WITH FORMER UK QB TIM COUCH SUED, FACES $2M+ LIENS

A Kentucky bourbon distillery that included Kentucky football legend Tim Couch as a partner is facing more than $2 million in liens and multiple lawsuits. | Published August 25, 2025 | Read Full Story by Janet Patton

The Nearest Green Distillery in Tennessee will be placed in the hands of a receiver after a federal judge ruled in favor of Farm Credit’s petition to remove Fawn and Keith Weaver from operating it for now.

NO. 10: WHAT’S NEXT FOR TROUBLED, MAJOR WHISKEY BRAND NOW IN RECEIVERSHIP?

A federal judge in Tennessee has appointed Phillip G. | Published August 25, 2025 | Read Full Story by Janet Patton

Kentucky Cooperage, shown in a photo on its web site, announced that the barrel maker is laying off 110 from its Lebanon, Ky., plant in October.

NO. 11: KY BARREL MAKER ANNOUNCES JOB CUTS IN ANOTHER HIT TO BOURBON INDUSTRY

In a further sign of the bourbon industry’s slow down, Kentucky Cooperage is laying off 110 workers from its Lebanon plant. | Published August 26, 2025 | Read Full Story by Piper Hansen, Janet Patton

CBC in Ontario reported on Thursday that officials from Diageo told workers at a Crown Royal bottling plant it would be closing in February. About 160 employees will be impacted. The global spirits company, which also makes Bulleit in Kentucky, has said it wants to cut costs by $625 million over the next three years.

NO. 12: SPIRITS GIANT DIAGEO ANNOUNCES FIRST MAJOR CLOSURE AMID CUTS. HERE’S WHERE

Global spirits giant Diageo has announced the first major closure since the company said earlier in August that it planned to cut jobs as part of efforts to save $625 million over the next three years. | Published August 29, 2025 | Read Full Story by Janet Patton

Constellation, which owns Corona, Modelo, Kim Crawford and Robert Mondavi wines as well as High West bourbon, lowered its fiscal 2026 guidance on Sept. 2.

NO. 13: ANOTHER ALCOHOL MAKER REPORTS GRIM FINANCIAL NEWS. WHAT DOES IT MEAN FOR KY BOURBON?

Another spirits company reported bad financial news Tuesday morning, resulting in a stock market drop across the alcohol sector. | Published September 2, 2025 | Read Full Story by Janet Patton

At the 2024 Kentucky Bourbon Festival in Bardstown, attendees could purchase VIP packages that included exclusive access. By Zach Sinclair

NO. 14: HAVE QUESTIONS ABOUT KENTUCKY’S BOURBON INDUSTRY? JOIN OUR LIVE EVENT

Kentucky’s $9 billion bourbon industry is going through a rough patch. | Published September 3, 2025 | Read Full Story

The union will vote Friday on the proposed new contract, which calls for the Jim Beam distillery to hire more full-time workers.

NO. 15: JAPANESE CEO WHO OVERSAW WHISKY EMPIRE OUT. WHAT’S NEXT FOR JIM BEAM, MAKER’S MARK?

There’s been a shake up in the top ranks of one Kentucky’s biggest bourbon companies. | Published September 3, 2025 | Read Full Story by Janet Patton

Video of an Ontario liquor store employee removing bottles of Jack Daniel’s Tennessee Whiskey, Brown-Forman’s product, and other American bourbons from shelves on Tuesday went viral.

NO. 16: CANADIAN READERS RESPOND: BLAME TRUMP FOR KENTUCKY’S BOURBON WOES, NOT US

Canada would like Kentucky to know: | Published September 6, 2025 | Read Full Story by Janet Patton

The summary above was drafted with the help of AI tools and edited by journalists in our News division. All stories listed were reported, written and edited by McClatchy journalists.