U.S. spirits distillers are battling economic challenges in 2025 that have forced some companies to file for bankruptcy protection.

Distillers have struggled with the rising cost of labor and products driven by inflation and changes in consumers’ attitudes toward drinking spirits.

The U.S. spirits industry suffered a 2.8% decline in sales and a 3.2% drop in volume in the first half of 2025, according to NeilsenIQ, Beverage Industry reported.

Financial distress led five spirits distillers to file for Chapter 11 in the first half of 2025, including Boston Harbor Distillery on March 31, House Spirits Distillery LLC on April 6, McCallum & Sons Whisky Co. on April 30, Devil’s River Distillery on May 1, JJ Pfister Distillery on May 2.

The economic distress in the spirits industry is not just a U.S. phenomenon, as experts assert it’s a global condition.

Whiskey is selling less globally

“Whisky in general is selling less right around the world,” Davin de Kergommeaux, the author of “Canadian Whisky: The Portable Expert,” told CBC.

“People are drinking less alcohol, brown spirits. In fact, distilled spirits in general are not selling as well as they used to. Nobody’s meeting their targets,” de Kergommeaux said.

The Alton Distillery filed for Chapter 11 bankruptcy protection and has temporarily closed its tasting room.

Image source: Pixabay

The Alton Distillery files for bankruptcy protection

And now, the parent company of popular whiskey and vodka distiller The Alton Distillery filed for Chapter 11 bankruptcy protection, seeking to restructure its debt obligations and continue its operations.

SVG 26 LLC, the owner of the award-winning Bethel, N.Y.-based whiskey and vodka company, filed its petition in the U.S. Bankruptcy Court for the Eastern District of New York on Sept. 25, listing $1 million to $10 million in assets and liabilities in its petition.

Related: Popular beer brand and brewery files Chapter 11 bankruptcy

The Alton distills a variety of whiskeys and its Peace Vodka at its distillery, which opened in 2010.

The Alton Classics include the company’s New York Straight Rye Whiskey and New York Straight Bourbon Whiskey, made with natural yeast and Catskill Mountain water and aged in charred American oak.

The Alton Distillery’s products:

• The Alton Classics New York Straight Rye Whiskey
• The Alton Classics New York Straight Bourbon Whiskey
• Old Casks Reserve Bourbon
• Old Casks Reserve Wheat Whiskey
• Old Casks Reserve Rye Whiskey
• Old Casks Reserve Buckwheat Spirit
• Lachlan Buckwheat Spirit
• Lachlan Double Cask Single Malt
• Abermooie Blended Bourbon
• Emmalynn Blended Rye Whiskey
• Lachlan Blended Malt Whiskey
• Peace Vodka

The Alton’s Old Casks Reserve consists of bourbon, wheat whiskey, rye whiskey, and buckwheat spirit.

The Lachlan Collection includes Lachlan Buckwheat Spirit and Lachlan Double Cask Single Malt, and its Alton Blended Whiskeys include Abermooie Blended Bourbon, Emmalynn Blended Rye Whiskey, and Lachlan Blended Malt Whiskey.

The Alton Distillery wins awards

The Alton has taken home a trophy case full of awards for its spirits, as it won a 2024 Best Bourbon Gold Medal awarded by The Fifty Best for its 5-year-old New York Straight Bourbon Whiskey and a 2023 Best Rye Whiskey Gold Medal from The Fifty Best for its 5-year-old New York Straight Rye Whiskey.

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The company also won a 2023 Bartender Spirits Awards Gold Medal for its New York Straight Rye Whiskey, and a 2023 Bartender Spirits Awards Bronze medal for its Peace Vodka.

List of The Alton spirits medals:

• The Fifty Best 2024 Best Bourbon Gold Medal, 5-year-old New York Straight Bourbon Whiskey.
• The Fifty Best 2023 Best Rye Whiskey Gold Medal, 5-year-old New York Straight Rye Whiskey.
• Bartender Spirits Awards 2023 Gold Medal, New York Straight Rye Whiskey.
• Bartender Spirits Awards 2023 Bronze medal, Peace Vodka.

In addition to sales at its distillery, The Alton has offered its whiskey and vodka for sale online, including its 5-year-old New York Straight Bourbon Whiskey for $56 per 750 ML bottle, its 5-year-old New York Straight Rye Whiskey for $53 per 750 ML bottle, and its Peace Vodka for $25 per 750 ML bottle.

Whiskey sold out, tasting room closed

Currently, all three of those popular spirits are sold out, according to The Alton’s website.

The company also has notes on its website that its tasting room is temporarily closed, and its Rain Dogs Restaurant and Grill is closed for renovations.

Related: 55-year-old women’s fashion company files Chapter 11 bankruptcy