One of America’s Largest Whiskey Companies Pauses Production at 2 Kentucky Distilleries

MGP Ingredients is halting distilling operations at two Kentucky bourbon distilleries (Sipa via AP Images)

MGP Ingredients announced on Tuesday that it will temporarily halt distilling operations at two Kentucky facilities starting May 1, as the company finds itself with a surplus of inventory.

The company will pause at Limestone Branch Distillery in Lebanon and Lux Row Distillers in Bardstown. Limestone Branch produces Yellowstone Bourbon, Minor Case Rye and Bowling & Burch Gin. Lux Row Distillers is best known for its Rebel and Ezra Brooks brands but also produces Blood Oath, Lux Row and Daviess County.

MGP said the pause will affect 33 employees and that it expects to resume distilling when inventory levels support additional production, which is expected to take at least 12 months from the May 1 pause date.

The company will continue distilling at its major site in Lawrenceburg, Indiana, which is one of America’s largest distilleries. Other operations in Kentucky, including warehousing, bottling and visitor experiences, will remain active.

The move comes just days after a judge dismissed an investor case against MGP Ingredients, ruling that the company’s missteps were more likely to have been driven by mismanagement than fraud.

“The American whiskey market continues to be structurally oversupplied, with excess capacity and elevated inventory,” MGP Ingredients CEO and President Julie Francis said in a news release. “Like many companies across the industry, we are navigating a challenging environment and taking steps to better align our operations with current inventory levels while supporting our efficiency and productivity goals.”

It’s Not Just MGP: Industry Downturn Is Very Real

MGP is certainly not alone. The decision reflects broader shifts in the bourbon and American whiskey sector, where producers expanded output during peak demand in recent years. As demand growth slows, many companies are now managing surplus inventory and recalibrating production.

James B. Beam has paused production at its flagship Clermont, Kentucky distillery for the entirety of 2026. Spirits giant Diageo announced in September that it would be pausing production at its Tennessee and Texas whiskey distilleries, George Dickel and Balcones. The Balcones closure alone resulted in the loss of 17 jobs. This came two month after Diageo made a similar move at its lone Irish distillery, Roe & Co. Elsewhere in Ireland, Pernod Ricard announced last March that it would be pausing production at Midleton Distillery — the facility responsible for producing Jameson and Redbreast — from April until the summer.

MGP said the temporary idling is not expected to impact product availability for its brands or contract customers. The company produces whiskey for both its own labels and many third-party clients through its Distilling Solutions segment.

Visitor centers at both Kentucky distilleries will remain open, offering tours, tastings and retail sales during the production pause.

The company reaffirmed its full-year 2026 financial outlook, including expectations for sales, adjusted EBITDA and earnings per share.

MGP’s portfolio includes brands such as Penelope, Rebel, Remus and Yellowstone bourbons, as well as contract production for other spirits companies.