MGP Reports 59% Drop in Whiskey Sales Amid Market Glut

In Q2 2026, MGP, a leading producer of rye whiskey, experienced a significant decline in whiskey sales, which plummeted nearly 60 percent due to an oversaturated market. The Distilling Solutions division saw a year-over-year sales decrease of 42 percent, totaling $29.2 million, while gross profit dropped by 40 percent to $11.3 million. CEO Julie Francis noted an overall decline of 59 percent in 'brown goods sales.' To address this slump, MGP is prioritizing aged and private label whiskey, alongside expanding warehouse services, which now represent 30 percent of Distilling Solutions' revenue. Meanwhile, Branded Spirits sales increased by 3 percent, fueled by premium-plus brands. MGP, which was formerly Seagrams, acquired Luxco in 2021 and Penelope Bourbon in 2023. Francis remains hopeful about future growth.