Late last week, MGP, the massive Indiana distillery that makes whiskey for its own brands and contract distills for many others, announced that it was shutting down production at two of its Kentucky distilleries. This is just the latest example of a major American whiskey maker having to temporarily pause production due to uncertainties the industry is facing because of tariffs, decreased demand, and a whiskey glut.

According to a report in the Louisville Courier Journal, the two distilleries in question are Lux Row Distillers in Bardstown and Limestone Branch in Lebanon, both of which will stop production as of May 1 for a period of at least a year. These became part of MGP in 2021 when the company acquired Luxco, a St. Louis-based company that operates both of these distilleries where brands like Yellowstone, Blood Oath, Ezra Brooks, and Daviess County are made. As is usually the case with these announcements the pause is said to be temporary, and while distilling will halt, other operations will continues as normal including warehousing, bottling, barrel programs, and the visitor centers. Thirty-three employees will be “affected,” but MGP says that it will find ways to support them.

MGP issued a press release saying that whiskey-making operations will continue at its main distillery in Lawrenceburg, Ind., but overall the company has had a pretty tough couple of years. In February, it issued its most recent financial report for 2025, which revealed that consolidated sales were down by 24 percent, gross profit had decreased by 30 percent, and net income was down by over 50 percent. Regarding the decision to pause production at the two distilleries, MGP president and CEO Julie Francis said in a statement that the American whiskey industry is dealing with excess capacity and inventory. “Like many companies across the industry, we are navigating a challenging environment and taking steps to better align our operations with current inventory levels while supporting our efficiency and productivity goals,” she said. “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.”

This news also comes not long after Lux Row announced the release of the latest edition of Blood Oath, one of its most collectible whiskey releases. Blood Oath Pact 12, a Kentucky straight bourbon finished in Montepulciano and Sangiovese wine casks and bottled at 98.6 proof, will still be available to purchase at the distillery starting April 25, despite the shutdown. We reached out to representatives for both distilleries for further comment, but haven’t heard back yet. We will update this story if and when we do.