MGP Emphasizing Branded Business Amid Slower Whiskey Market

MGP Ingredients said a softening American whiskey market cut into sales in its fiscal third quarter. The company reported consolidated sales down 24% to $161.5 million for the three months through September. Despite the sales decline, the company reported net income up 82% to $23.9 million.

Sales decreased 36% to $71.9 million at MGP’s Distilling Solutions unit, primarily due to a 22% drop in unaged and lower-aged brown spirits. The picture for MPG’s Branded Spirits was brighter, though headwinds still caused sales to fall 6% to $62.6 million. According to MGP, the Branded decline was due to losses among mid- and lower-priced brands, with premium-plus brands up 1%.

“In response to the softening American whiskey category trends and elevated industry-wide barrel inventories, in 2025 we plan to further lower our net aging whiskey put away, scale down our whiskey production, and optimize our cost structure to mitigate lower production volumes,” said president and CEO David Bratcher. “We are pleased with our progress towards becoming a premier branded spirits company. Though further inventory tightening is a headwind in the near term, we expect our continued investments behind our brands portfolio to deliver attractive organic growth.”—Shane English

Tagged : MGP, Ross & Squibb

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