What’s causing MGP to idle Kentucky distilleries?

Oversupply from high production meeting tariffs-hit exports and falling U.S. alcohol demand.

How does this affect Diageo?

Short-term supply hiccup; they’ll seek backups, but costs rise via contract obligations.

Retail holds steady now, but glut eases in 2-3 years—watch for dips by 2026.

Two Kentucky whiskey distilleries grind to a halt. MGP blames tariffs and drinkers turning away, exposing cracks in the bourbon boom.

Supply Chain Beat Apr 11, 2026 4 min read

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#Diageo supply chain #Kentucky distilleries #MGP Ingredients #alcohol tariffs #whiskey oversupply

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Originally reported by Supply Chain Dive