Yet Another Bourbon Maker Files For Bankruptcy As More & More Americans Choose To Stop Drinking

A recent trend in Americans giving up drinking is hitting the alcohol industry hard.

You’ve likely heard the news that more and more citizens of the United States (especially the younger demographic) are drinking less alcohol. According to a recent Gallup poll, the percentage of Americans who drink has fallen to a record-low of 54%. That is down tremendously from 67% in 2022.

And when you look at young adults specifically, only 50% reported drinking alcohol. But that’s not the only issue for the alcohol industry. For the very first time, a majority of those who were surveyed reported that they believe even moderate drinking is bad for your health.

The numbers and statistics behind those who are still drinking aren’t promising either. That same survey found that even the drinkers are cutting back. The average number of drinks consumed in a week was 2.8, another record low and down nearly 50% from the 5.1 drinks per week reported in 2003.

Are people just starting to weigh the pros and cons of drinking and cutting it out completely? Or are people turning to alternatives, like marijuana? A 2024 study found that 22.3% of Americans reported having used cannabis within the past year, and that was up from around 11% in 2002, so that could be why total alcohol consumption has slowly been dwindling.

Regardless, the result of Americans giving up drinking (or potentially turning to marijuana) is causing a negative impact on the booze industry. Add on the tough economic conditions that many have faced in recent years, and the drop in demand internationally thanks to ongoing tariffs, and you’ve got a perfect storm that’s causing a lot of alcohol production to decline, or shutter altogether.

The latest spirit maker to signal distress is A.M. Scott Distillery. The Ohio-based distiller filed for Chapter 11 bankruptcy on December 22, and plans to try and re-organize assets, as stated in their bankruptcy filing:

“With a simplified structure, energized team, and revitalized brand strategy, A.M. Scott Distillery is well positioned to emerge stronger and more sustainable than ever before.”

To be clear, A.M. Scott Distillery, which originally opened as a hand sanitizer production facility during COVID, didn’t just shutter because of the decline in Americans drinking. They have faced some legal issues and lawsuits in the past couple of years, including the owner – Anthony M. Scott – being indicted on felony theft charges. In other words, the A.M. Scott Distillery was up against it in more ways than one, and filing for bankruptcy was their best step to move forward.

And they aren’t alone. Devils River Distillery of San Antonio and Boston Harbor Distillery of Boston, among many others, have also filed for bankruptcy this year. If there was a “bourbon and whiskey boom,” it’s now officially going bust. Which is rather surprising, considering many distilleries were ramping up and expanding to keep up with demand just a couple of years ago.

Now, even recognizable producers like Jim Beam have announced plans to pause production. Their Clermont, Kentucky distillery will officially cease operation on January 1, and remain shuttered through the end of 2026. However, the visitors center will remain open and the company will still continue production at their Freddie Booker Noe craft distillery, as well as their Booker Noe distillery in Boston.

However, there won’t be any new Jim Beam produced in 2026, or other products that are produced at the main distillery in Clermont like Knob Creek, Baker’s, Booker’s and Basil Hayden’s. According to a statement from the company, it sounds like they’ve got plenty on hand to meet worldwide demand and plan to use the pause to make improvements to the distillery:

“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026. We’ve shared with our teams that while we will continue to distill at our (Freddie Booker Noe) craft distillery in Clermont and at our larger Booker Noe distillery in Boston, we plan to pause distillation at our main distillery on the James B. Beam campus for 2026 while we take the opportunity to invest in site enhancements.

Our visitor center at the James B. Beam campus remains open so visitors can have the full James B. Beam experience and join us for a meal at The Kitchen Table.”

So what’s the silver lining to this story? If you call yourself a bourbon or whiskey drinker, you shouldn’t have a problem finding the bottle you’ve been looking for… and you might even get it for a great deal.The post Yet Another Bourbon Maker Files For Bankruptcy As More & More Americans Choose To Stop Drinking first appeared on Whiskey Riff.