The branded and distilled spirits business of MGP Ingredients Inc., which co-manufactures bourbons and ryes for numerous brands and also produces its own branded spirits under its Luxco business, will temporarily idle distilling operations at two of its distilleries in Kentucky, according to a release from the company and local news reports.
In order to adjust current inventory levels and production with the challenges that have arisen in consumer demand for spirits recently, Limestone Branch Distillery in Lebanon, Ky., and Lux Row Distillers in Bardstown, Ky., will cease distilling operations effective May 1, 2026, until “inventory level support additional production,” the company said in the release. MGP said that could be “as early as 12 months after that date.”
The temporary shutdown will impact 33 employees at the two facilities, and the company said it was supporting them through the transition. MGP’s Lawrenceburg, Ind., facility — its largest — will continue distilling operations at this time. Additionally, warehousing, bottling and barrel programs will continue at the two Kentucky facilities, and the visitor centers will remain open with service unchanged.
Julie Francis, president and CEO of MGP, said in the announcement: “The American whiskey market continues to be structurally oversupplied, with excess capacity and elevated inventory.” MGP took a $153 million asset impairment charge related to spirits inventory in its last earnings report, according to local reports.
Outside of its co-man business, MGP’s Luxco unit produces spirits for the Penelope, Rebel, Remus and Yellowstone bourbon brands, as well as the El Mayor tequila label.