Recent headlines tell a much less optimistic tale for bourbon than the nearly two decades of strong growth the industry touted.
In recent months, three Kentucky distilleries have filed for Chapter 11 bankruptcy, and bourbon heavy-hitters are downsizing. Brown-Forman, home to Jack Daniel's, slashed 12% of its workforce earlier this year.
The Lexington Herald-Leader reports one of the labels in bankruptcy protection, Kentucky Owl, is seeking to pay off $78 million in debt with 35,000 barrels of unfinished bourbon — a plan lender Fifth Third is objecting to based on what it sees as a slumping market and a possible loss on their end.
Then there are tariffs.
Sen. Rand Paul reiterated his concerns about the favored Trump administration policy in front of a Louisville audience this week. Paul has warned about the effects on bourbon — and the way tariffs encourage carve-outs for those with more influence.
"The problem with exemptions is this. If you are big and powerful, you'll get an exemption. If you are a small importer exporter, you got 10 employees, you're not getting one," he said.
Kentucky bourbon did, however, receive some welcome news on Wednesday.
In a bid to reset trade negotiations. Canadian Prime Minister Mark Carney said his country, a major bourbon importer, is dropping its retaliatory tariffs. Bourbon industry leaders say it's a "good first step" but worry that the tariffs and negative sentiment toward American products in Canada may have a lasting impact, especially for smaller operations.