MGP Reports Steep Whiskey Sales Decline as Industry Faces Global and Domestic Headwinds
A logo sign outside of a facility occupied by MGP Ingredients, Inc., also known as Midwest Grain Products, in Lawrenceburg, Indiana on July 2, 2017. Photo by Kristoffer Tripplaar *** Please Use Credit from Credit Field ***(Sipa via AP Images)
One of America’s largest whiskey producers has reported a major drop in quarterly sales, highlighting the mounting challenges facing the U.S. bourbon and whiskey industry.
MGP’s Third-Quarter Results Reveal Sharp Decline
Indiana-based MGP, a leading producer of bourbon and rye whiskey, announced a 19 percent decline in consolidated sales to $130.9 million in the third quarter of 2025. Net income fell by 35 percent to $15.4 million, according to its October 29 press release.
Sales from MGP’s Distilling Solutions division, which supplies whiskey to other brands, fell 43 percent to $40.9 million. The company’s Branded Spirits line, which includes the Ross & Squibb portfolio, dropped three percent to $60.7 million. Only its Ingredient Solutions segment, which produces wheat proteins and starches for food applications, showed growth, rising nine percent.
Production Cuts and Market Pressures
This marks the second consecutive year MGP has reported lower sales. In late 2024, the company issued a profit warning, forecasting annual revenue of $700 million, down from a prior estimate of $750 million. Shortly after, CEO David Bratcher announced plans to scale back whiskey production due to waning demand.
The downturn has raised concern among U.S. distillers. Chris Swonger, president and CEO of the Distilled Spirits Council, warned in an October statement that global preferences are shifting. “International consumers are increasingly choosing domestically produced spirits or imports from outside the U.S., signaling a move away from American brands,” he said.
Industry Trends: Tariffs and Shifting Consumption
Two major forces appear to be driving whiskey’s slowdown. First, higher trade tariffs have discouraged foreign buyers, making American spirits less competitive in key export markets. Second, U.S. alcohol consumption has reached historic lows.
A Gallup poll from July 2025 found that only 54 percent of U.S. adults drink alcohol, the lowest rate since the survey began in 1939. Meanwhile, tequila and mezcal have overtaken whiskey in sales growth, reflecting changing consumer preferences toward agave-based spirits and premium imports.
MGP Stresses Long-Term Resilience
Despite the disappointing numbers, MGP leadership remains confident about the company’s direction. In a statement, Julie Francis, MGP’s president and CEO, said the results “demonstrate the resilience of our business and our team’s ability to deliver on key initiatives amid ongoing industry headwinds.” She emphasized that the company’s long-term strategy and focus on efficiency “position MGP for sustained value creation.”
Analysts suggest that the broader whiskey market could stabilize once global trade barriers ease and domestic consumption levels recover. Until then, producers may continue to face a challenging path forward.
Resources:
An American Whiskey Giant Just Reported a Shocking Sales Drop – Inc.com
MGP Ingredients Reports Third Quarter 2025 Results – MGP Ingredients Press Release
US alcohol consumption at record low as health concerns rise, survey finds – Reuters
