Barrell Craft Spirits has offloaded a contract bottling facility as the US whiskey producer adapts to the recent cooling of the category.

The company has sold its blending and bottling site in Jeffersontown in Kentucky to American Craft Bottling for an undisclosed sum.

Barrell Craft Spirits (BCS) said it would move all its blending to its original site in Gilmore in Louisville.

BCS acquired the facility in Jeffersontown five years ago amid strong demand for US whiskey.

“When we originally purchased the Jeffersontown property, consumer demand for whiskey was at an all-time high,” BCS founder Joe Beatrice told Just Drinks. “Since then, purchasing patterns have shifted and the market has seen higher-than-normal inventory levels at both distributor and retail tiers. We’ve also recognised that contract bottling has diverted time and resources from our core business priorities.”

All BCS employees who work at the Jeffersontown site will move to BCS’ Gilmore facility.

The Gilmore site is primarily used for BCS’s own brands, which include Barrell Bourbon and Barrell Foundation but it does work with clients on projects.

“BCS’ Gilmore facility offers enough capacity to support the company’s current and future needs. We have also invested in new equipment and technology to expand operations without disrupting ongoing work,” Beatrice said. “The sale has enabled us to invest in new high-speed bottling equipment and additional technology upgrades that will expand our capabilities and improve operational efficiency.”

In 2025, US whiskey sales fell 2.5% to $3.1bn, according to the latest round of NABCA data, which was published last week. Volume sales slid 3.4% to 10.6m nine-litre cases.

The NABCA data covers 18 control states, including off- and on-premise sales. Investment bank TD Cowen estimates the NABCA numbers account for 20-25% of the US spirits market.

US whiskey, gin and Scotch were the only categories to register a positive price/mix – up 0.9% for both US whiskey and gin and 0.2% higher for Scotch.