MGP Ingredients, one of the United States’ leading drinks producers, has announced plans to temporarily pause 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 current inventory.

The temporary shutdown will take effect from May 1st 2026. MGP expects to resume distilling operations once inventory levels support additional production, which could be as early as 12 months after that date.

Other operations, including warehousing, bottling and barrel programmes, will continue. Visitor centres at both distilleries will also remain open.

In December 2025, Jim Beam announced it would pause production at its Clermont, Kentucky site for a year. US distillers are facing uncertainty over trade tariffs, alongside a decline in alcohol consumption. According to the Kentucky Distillers’ Association, a record 16 million barrels of Bourbon are currently stored in warehouses across the state.

Commenting on the announcement, Julie Francis, President and CEO of MGP Ingredients, 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. This decision was not made lightly. We are grateful for the contributions of our teams, committed to supporting those affected, and remain confident these distilleries will continue to play an important role in our business in the future.”

The decision will affect 33 employees across the two facilities. MGP is working directly with those affected to support them through the transition.

The company will continue distilling operations at its largest facility in Lawrenceburg, Indiana, to support its brands, clients and customers.