US spirits producer MGP Ingredients is temporarily pausing distilling operations at two of its facilities in Kentucky.
In a statement yesterday (7 March), the company said the “temporary idling” will take effect on 1 May at Limestone Branch Distillery in Lebanon and Lux Row Distillers in Bardstown.
It said the move was being made as it "adjusts production levels to align with its current inventory levels".
However, MGP will continue distilling at its largest site in Lawrenceburg, Indiana.
The Limestone Branch location produces brands such as Yellowstone Select Bourbon and Minor Case rhye whiskey while the Lux Row site produces brands including Ezra Brooks Bourbon and Daviess County Bourbon.
The move will affect 33 employees across the two facilities. MGP said it is working directly with affected staff “to support them through the transition”.
MGP Ingredients president and CEO Julie Francis said: “The American whiskey market continues to be structurally oversupplied, with excess capacity and elevated inventory.
“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.
“As a result, we have made the difficult decision to temporarily idle distilling operations at these two facilities.”
MGP expects to restart distilling at the two sites when “inventory levels support additional production” – which could be as early as 12 months after the pause begins.
Other operations at Limestone Branch and Lux Row, including warehousing, bottling and barrel programmes, will continue, the group said. Visitor centres at both distilleries will also remain open, with tours, tastings, retail and limited releases continuing as usual.
MGP added that the pause of operations is not expected to affect product availability for clients and customers.
MGP Ingredients makes distilled spirits, branded spirits and food ingredients.
The company’s distilled spirits, which Bourbon, rye whiskey, vodka and gin, are sold to manufacturers of other branded spirits.
The food ingredients business, housed in the group’s Ingredient Solutions division, sells wheat-based ingredients.
In its statement, the group, whose portfolio includes brands such as Penelope Bourbon and El Mayor Tequila, also reaffirmed its full-year 2026 guidance released in February.
The company expects 2026 sales to be in the range of $480m-$500m, down from $536.4m in 2025. The company said the outlook reflects an “anticipated” sales decline in its Distilling Solutions division.
Alongside its distilleries in Indiana and Kentucky, the group operates a Tequila distillery in Arandas, Mexico, and bottling sites in Missouri, Ohio and Northern Ireland.
