Aged spirit producers are facing challenges due to declining alcohol consumption and tariffs limiting international markets, leading to a surplus in whiskey and bourbon production.

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Major players like Suntory, Diageo, and Brown-Forman are scaling back production to align with current inventory levels.

The Distilled Spirits Council of the United States released export figures showing a 19% decline in American whiskey exports in 2025, amounting to a $250 million decrease.

Kentucky and Tennessee distillers aimed to boost exports to reduce excess stock but faced challenges due to uncertainty over tariffs, leading to a market slowdown.

Distilled Spirits Council President and CEO Chris Swonger emphasized the importance of stable, tariff-free trade and expanding market access abroad for the US spirits sector’s growth.

Exports to Canada of US spirits, mainly whiskey, plummeted by over 70% after a ban was imposed, resulting in a $143 million decline in sales.

The top export markets for US spirits in 2025 were the EU, the United Kingdom, Australia, Mexico, and Canada, accounting for 72% of all US spirits exports.

MGP Ingredients, a key supplier in the industry, reported a decline in distilling solution sales but expects its specialty food ingredients to offset some losses.

The company is navigating a challenging environment by adjusting operations and focusing on efficiency and productivity goals.

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