Multiple Kentucky Whiskey Distilleries File for Bankruptcy
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Three Kentucky Whiskey Distilleries File for Bankruptcy
Above: A worker performs a quality control check at the James B. Beam distillery in Clermont, on July 26, 2022. Image copyright: Luke Sharrett/Bloomberg/Getty Images
The Spin
Pro-establishment narrative
The collapse of the bourbon industry stems from fundamental market forces beyond the control of politics. Rising production costs, inflation, and changing consumer preferences toward canned cocktails and non-alcoholic alternatives have created a perfect storm. Gen Z consumers are drinking less frequently, with 21.5% abstaining completely and 39% drinking only occasionally, fundamentally shifting demand patterns that no policy can reverse.
Establishment-critical narrative
Trump's tariffs are devastating Kentucky's signature industry through retaliatory measures that directly target bourbon exports. The EU previously imposed 25% tariffs on bourbon during trade disputes, and current tariff threats continue squeezing export markets worth $1.2 billion annually to Europe alone. Kentucky politicians confirm these policies are significantly impacting the industry that produces 95% of the world's bourbon supply.