American Whiskey Giant MGP Sees 59% Sales Plunge in Q2

(Photo: MGP)

American whiskey giant MGP faced another tough quarter for its Distilling Solutions arm as whiskey sales fell 59% to $29.2 million. Executives at the Indiana-based company attribute the decline to a “challenging industry backdrop” sweeping booze firms large and small.

MGP’s Distilling Solutions is the largest supplier of white-labeled whiskey in the United States, and is responsible for producing myriad brands ranging from Bulleit Rye to Redemption Bourbon. Upper management says there’s currently a “lower demand for aged and new distillate whiskey” and is actively pursuing changes behind the scenes to adjust MGP’s operating model. In November 2024, the company announced that it was scaling down its bulk distilling operations in favor of a smaller roster of in-house brands.

The approach isn’t yet a resounding success, but it’s shown promising results.

The company’s Branded Spirits arm — which includes imprints like George Remus and El Mayor Tequila — reportedly fell by 1% to $59.6 million. So-called “premium-plus” brands, however, grew by 5%. The biggest sales leaders were Penelope Bourbon, which MGP acquired in 2023, and Yellowstone whiskey, which saw success with limited-edition launches.

“These results reflect continued momentum in our premium-plus portfolio, led by Penelope Bourbon and Yellowstone, and an improvement in select mid- and value-priced brands,” MGP President Julie Francis remarked in a news release. “As we move through the second half of 2026, we will maintain our strategic roadmap and drive our key growth initiatives, while prioritising our best opportunities for growth, taking decisive actions and executing with discipline.”

The company’s Ingredient Solutions arm, which manufactures specialty wheat starches and proteins for commercial food products, was the sole business to report a sales increase, growing by 2% to $35.5 million.

Across the board, sales and gross profits decreased by 15% and 20%, respectively, and advertising and promotion expense decreased 18% to $5.7 million.

In April, MGP announced that it was temporarily halting production at its Limestone Branch Distillery in Lebanon and Lux Row Distillers in Bardstown. Limestone is best known for Minor Case Rye, Bowling & Burch Gin and Yellowstone, while Lux Row produces staples like Rebel and Ezra Brooks. The pause was attributed to an inventory surplus and is expected to remain in effect for a full year.