MGP Ingredients is hitting the pause button on distilling at its Lux Row and Limestone Branch facilities for the next year.
MGP Ingredients (MGPI), the contract distilling powerhouse, has announced it is pausing production at two Kentucky distilleries. In response to a shifting economic landscape for spirits, the company is temporarily idling distilling operations at Lux Row Distillers in Bardstown and Limestone Branch Distillery in Lebanon. This move follows a similar announcement from the makers of Jim Beam, who confirmed in late December 2025 that they would pause production at their main James B. Beam campus in Clermont, Kentucky, for the entirety of 2026. The pause for MGP is set to begin on May 1, 2026, and is expected to last for approximately 12 months.
Strategic Realignment and Management Statements
Julie Francis, President and CEO of MGP Ingredients, emphasized that the decision was made to address a challenging environment where excess capacity and elevated inventory levels have become the industry norm. “The American whiskey market continues to be structurally oversupplied, with excess capacity and elevated inventory,” said Francis, in an official statement. “As a result, we have made the difficult decision to temporarily idle distilling operations at these two facilities. This decision was not made lightly. We are grateful for the contributions of our teams, committed to supporting those impacted, and remain confident these distilleries will continue to play an important role in our business in the future.”
The facilities at Lux Row Distillers.
Impact on Hospitality and National Operations
For those worried about their favorite bottles disappearing, MGP has clarified that the pause is strictly related to the distilling of new spirits. The visitor centers, tours, and retail shops at both Lux Row and Limestone Branch will remain open to the public, and secondary operations like warehousing, bottling, and barrel programs will continue without interruption. Furthermore, MGP’s massive flagship facility in Lawrenceburg, Indiana—historically known as LDI or Ross & Squibb—will continue full operations.
Limestone Branch Distillery
MGP Owned Brands and Contract Partners
MGP’s footprint in the whiskey world is expansive, especially following its 2021 acquisition of Luxco. The company now owns high-profile brands like Penelope Bourbon, which it acquired in 2023, as well as the Rebel, Ezra Brooks, and Yellowstone labels. Beyond its internal portfolio, MGP is the primary source of distillate for many beloved Non-Distiller Producers (NDPs). Brands like Smooth Ambler, which gained fame for its Old Scout line, and O.K.I., a brand whose name pays homage to the Indiana distillate, continue to rely on MGP’s consistent quality. Other notable partners include Old Soul, and Backbone, known for its bold, uncut MGP bottlings.
A selection of the brands produced at Lux Row Distillers.
A Broad Trend of Industry Downsizing
This cooling period for MGP is part of a broader trend of downsizing across the spirits industry as the post-pandemic bourbon boom enters a correction phase. MGP joins other major players like Suntory Global Spirits, which recently confirmed a year-long break in production at its James B. Beam campus. Similarly, Diageo has previously paused distilling operations at sites like Bulleit and George Dickel to manage inventory. Even Brown-Forman, the maker of Jack Daniel's, has tightened its belt this year by selling off certain wine brands and closing its historic Louisville cooperage. While these shifts signal a more cautious era for whiskey producers, they reflect a strategic effort to ensure long-term stability in a market that had been running at breakneck speed for a decade.
Photographs courtesy of Lux Row Distillers and MGP Ingredients.
