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American whiskey production is slowing to a trickle at two Kentucky distilleries owned by Lofted Spirits, the latest setback stemming from decreased demand in the once-booming bourbon market.
Bardstown Bourbon Co. is cutting its operation to a single work shift and Green River Distilling Co. now will only produce bourbon and rye on an as-needed basis for its contract clients, according to Louisville Business First.
“Like much of the American whiskey industry, we are making adjustments to meet current demand for contract whiskey,” Lofted Spirits said in a statement. “We will continue to adjust for the market—whether that’s growing or shrinking.”
No word yet on whether those adjustments include layoffs at either site.
Green River, Kentucky’s 10th oldest registered distillery dating back to 1885, hopes to find relief by turning its attention to a quicker play: rum. Unlike bourbon, which requires years of expensive aging in charred oak, the traditional Caribbean spirit can be bottled and sold much faster.
The rum run will be produced strictly for Green River’s contract clients, according to Lofted chief executive Mark Erwin. He expects rum to account for nearly half of the company’s production this year, making up for the estimated 50 percent drop in its bourbon output.
“I don’t mind making it,” Erwin told Reuters earlier this month. “It’s good business.”
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