Two Major Kentucky Bourbon Distilleries Are Cutting Production

(Photo: Bardstown Bourbon Co.)

Lofted Spirits is scaling back production at its Kentucky distilleries, Louisville Business First reported Friday.

Bardstown Bourbon Co. is reducing operations to a single shift, while Green River Distilling Co. is shifting to an as-needed production model as the American whiskey industry navigates a prolonged slowdown.

Green River will increase its rum production, as the traditional Caribbean spirit requires less aging before bottling, Lofted Spirits CEO Mark Erwin recently said per a Reuters report. Lofted Spirits confirmed to The Daily Pour that the rum production will be strictly for the company’s contract clients, and that Lofted’s in-house brands have no plans to bottle and sell rum on their own.

The Bardstown-based company confirmed that both facilities have lowered output in response to weaker demand for contract whiskey production, a key segment of Kentucky’s distilling economy.

Distilling, barreling and warehousing will continue at both Bardstown Bourbon Co. and Green River Distilling Co., but at reduced volume.

Lofted Spirits, which spun out of Bardstown Bourbon Co. in 2025 and is owned by Chicago-based Pritzker Private Capital, declined to say how many jobs may have been affected or when the reduction in shifts took place.

“Like much of the American whiskey industry, we are making adjustments to meet current demand for contract whiskey,” the company said, per Louisville Business First. “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.”

The production cuts come amid broader industry headwinds, as distillers across Kentucky and beyond adjust to softening demand for American whiskey following years of rapid expansion.

The changes also follow recent leadership and staffing shifts within Lofted Spirits, including the planned departure of President Pete Marino at the end of June and the laying off of Green River Head Distiller Aaron Harris. Earlier this year, former employees and executives at the company also publicly signaled transitions or departures following internal disputes and workforce adjustments.

In March 2025, Green River laid off 26 employees, representing roughly 30% of its workforce at the time.

Despite the pullback in production, Lofted highlighted continued growth in other areas of its business. The company said its co-packing and bottling operations remain strong and are nearing full capacity, with expansion expected to be completed in early June.

Lofted also reported that Bardstown Bourbon Co. and Green River brands grew 44% in 2025, including what the company described as its strongest month of shipments on record in January.

Both distilleries maintain visitor experiences in Kentucky, including Bardstown Bourbon Co.’s downtown Louisville tasting room, which has drawn an estimated 100,000 visitors annually since opening in October 2023, and Green River’s Louisville tasting room, which opened in June 2025.