Last year, we have reported that the MGP, one of the country’s largest distilies, will overtake its whiskey production this year. Well, it turns out that it was probably a good move because this week the company reported a 24 % reduction in sales at the end of Q2, which is more bad news for the US Wasky industry.
For anyone who is following the headlines, this should not be a surprise. MGP Indiana has a widespread distalry that provides the brands with a lot of whiskey (a plenty of rye, but also bourbon) who do not have their own distalries (or not too long), such as Templatin, Blattan, Cit Pags, Pin Hook, and Fidia – and Small Brands. In the last two years, there have been more options for non -distal producers, including Bardstown Bourbon Company and Southern Distling, and much more is ready to come online (though for some of them, the future is known to be uncertain). In fact, add that young people are drinking less and threats behind the taxes, and many companies are feeling very nasty.
I according to an article Globe and MailDifferent results have been found in MGP’s three business letters: distaling solutions (contracting), branded spirits (Ross & Skib B in domestic spirits brands), and components solutions (food grade wheat protein and starch). In the branded spirits, which includes Wiskey, such as George Ramus and Remus Gatesbie Reserve, sales decreased by 5 %, though the premium part of Pelop Bourbon, which was acquired by the MGP a few years ago, increased by 1 %. This could be a bad sign for the company, because the purpose of Scaking Back to prepare for whiskey was to awaken the brands inside. But distaling solutions have seen real misery, which is about 50 % less – is probably a symbol of a real whiskey gluten or brands that turn to other sources above. The solution to the ingredients was the only sector which showed positive growth, revenue increased by 5 %.
Of course, not everyone is taking such a sad approach to the industry. Earlier this week, Brian Rosen, the CEO of Investigation, who is an investor in the finances of alcohol and startup brands, had a livelihood (which makes sense of the nature of his business). While admitting that people are drinking less alcohol and there is a lot of bourbon, he said that the sale of liquor is ending and people are changing to choose cheap powers. “The bourbon is slowing down because the supply is very high,” he said.
The fact is that no one knows yet whether it is a course correction or is a change in the generation of alcoholism, sales, and consumption, but so far this year’s news has not been good. With more data we will continue to update you.
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