MGP Ingredients announced plans to temporarily idle distilling operations at its Limestone Branch Distillery in Lebanon, Kentucky and Lux Row Distillers in Bardstown, Kentucky, as the company adjusts production levels to align with its current inventory levels.
MGP will continue distilling operations at its largest facility Ross & Squibb Distillery in Lawrenceburg, Indiana, to support its brands, clients, and customers.
The temporary idling will take effect on May 1, 2026. MGP expects to resume distilling operations when inventory levels support additional production, which could be as early as 12 months after that date. The decision will affect 33 employees across the two facilities. MGP is working directly with those impacted to support them through the transition.
Stay Informed: Sign up here for the Distillery Trail free email newsletter and be the first to get all the latest news, trends, job listings and events in your inbox.
“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,” said Julie Francis, president and CEO of MGP Ingredients.
“As a result, we have made the difficult decision to temporarily idle distilling operations at these two facilities. This decision was not made lightly. We are grateful for the contributions of our teams, committed to supporting those impacted, and remain confident these distilleries will continue to play an important role in our business in the future.”
Other operations, including warehousing, bottling and barrel programs, will continue. The visitor centers at both distilleries will also remain open and continue to offer their full complement of immersive experiences that includes tours, tastings, retail offerings, limited release bottles and on-site engagements.
The temporary idling is not expected to impact the availability of MGP’s products or services to clients or customers.
The company reaffirms its consolidated 2026 sales, adjusted EBITDA, and adjusted basic EPS guidance announced in its earnings press release issued on February 25, 2026.
“2025 was a year of deliberate repositioning for MGP,” said Julie Francis, president and CEO. “I am pleased with the team’s efforts as we did what we said we will do and made meaningful progress against each of the five initiatives we outlined at the start of the year, advanced our key priorities, and delivered full-year financial results above our prior expectations.”
She added, “From an industry standpoint, we believe that elevated inventory levels will continue to pressure our brown goods business in the near-term. However, we expect improved operational reliability in the Ingredient Solutions segment, continued premium plus momentum, and accelerated productivity and cost discipline to help partially offset these headwinds – all of which are reflected in our 2026 guidance.”
She concluded, “As we look ahead, we believe our enhanced strategic clarity, decisive actions, and disciplined execution will position the company to deliver sustained growth off of our 2026 guidance expectations. Many of these actions are well underway, and they are already changing how we operate, giving us confidence that MGP will emerge better aligned, more resilient, and well positioned for long-term value creation.”
MGP Ingredients Inc. has been formulating excellence since 1941 by bringing product ideas to life across the alcoholic beverage and specialty ingredient industries through three segments: Branded Spirits, Distilling Solutions, and Ingredient Solutions. MGPI is one of the leading spirits distillers with an award-winning portfolio of premium brands including Penelope, Rebel, Remus, and Yellowstone bourbons and El Mayor tequila, under the Luxco umbrella. With distilleries in Indiana and Kentucky; a tequila distillery in Arandas, Mexico; and bottling operations in Missouri, Ohio, and Northern Ireland, the company creates distilled spirits for customers including many world-renowned spirits brands. In addition, the company’s high-quality specialty fiber, protein, and starch ingredients provide functional, nutritional, and sensory solutions for a wide range of food products.
Learn more about MGP Ingredients.
Learn more about Limestone Branch Distillery.
Learn more about Ross & Squibb Distillery.
Learn more about Lux Row Distillers.
View all Kentucky Distilleries.
View all Bardstown Distilleries.
View all Indiana Distilleries.
View all US Distilleries.
Please help to support Distillery Trail. Sign up for our Newsletter, like us on Facebook and follow us on Instagram and Twitter.
