Key Facts
• July 2025: LMD Holdings filed for Chapter 11 bankruptcy in Michigan.
• Kentucky whiskey industry valued at $9 billion, facing multiple challenges.
• Rising living costs and declining whiskey consumption among younger demographics.
• Trump-era tariffs triggered Canadian boycotts and Chinese retaliatory tariffs.
• LMD Holdings owes over $25 million to its largest creditor.
• Garrard County Distilling, a $250 million facility, closed in April 2024 due to unpaid debts.
• Wild Turkey sales dropped 8.1% in H1 2025, per Campari Group.
• Brown-Forman to cut 12% of workforce and close a barrel plant in January 2025.
• U.S. alcohol industry grappling with trade uncertainties and workforce reductions.
Summary
The iconic whiskey industry in Kentucky is under significant strain due to declining demand, rising costs, and global trade challenges. LMD Holdings, parent company of Luca Mariano Distillery, filed for bankruptcy in July 2025, citing over $25 million in debt. Other distilleries, including Garrard County Distilling and Kentucky Owl, have also faced closures or bankruptcy. Trump-era tariffs have exacerbated the situation, sparking Canadian boycotts and high Chinese retaliatory tariffs. Major brands like Wild Turkey reported an 8.1% sales decline in early 2025, while Brown-Forman announced workforce cuts and plant closures. The $9 billion industry is struggling to adapt to shifting consumer preferences and economic pressures.
