Liquor distilleries faced economic challenges in 2025, as spirits supplier sales declined by 2.2% to $36.4 billion, according to the Distilled Spirits Council of the U.S. data.

The declining sales led some companies to shut down operations, to the chagrin of consumers who looked forward to buying their products.

The council put a positive spin on the news, claiming consumers are shifting their distilled preference to ready-to-drink cocktails.

U.S. spirits sales declined 2.2%

“While total U.S. spirits sales edged down 2.2% in 2025, the spirits industry remains resilient, driven by innovative products that continue to spark consumer interest,” said Chris Swonger, CEO of the Distilled Spirits Council, The Spirits Business reported.

“Against a challenging backdrop of weakening consumer confidence and persistent economic pressures, American adults continue to choose distilled spirits, with ready-to-drink cocktails standing out as a clear favorite,” Swonger said.

Ready-to-drink cocktails become popular

The U.S. ready-to-drink cocktails segment showed the only sales increase, rising 16.4% year over year to $3.8 billion, according to a council report.

Tequila and mezcal sales declined 4.1% to $6.4 billion, the vodka category fell 3% to $7 billion, and whiskey sales dipped 0.9% to $5.1 billion.

A distillery, which did not have much of a ready-to-drink presence, permanently closed its doors, disappointing its regular customers.

Pittsburgh-based whiskey and vodka distillery Kingfly Spirits has gone out of business.

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Kingfly Spirits permanently closes

Popular vodka and whiskey distillery Kingfly Spirits abruptly shut down its Pittsburgh Strip District operations on Feb. 11, posting a farewell message on its Facebook page on the same day.

The distillery, tasting bar, and event space, which opened in February 2019, posted a message on its website about a week earlier, saying, “We are making some structural repairs in February,” but it apparently changed its intentions.

“After seven years of many ups, downs and alllll arounds, the team at Kingfly toasts you for the last time,” Kingfly said in a Feb. 11 Facebook post. “As of today, we are moving on to the next chapter of life and could not be more grateful for your friendship, patronage, support and celebration of what we did together.”

Kingfly closed same day of announcement

Kingfly noted in the post that the business was officially closed on Feb. 11 and “will not be conducting future bottle sales, drink sales, or granting public access to the building starting today.”

“All future event refunds have been returned and we kindly ask that you be (very) kind to our beloved team during the process,” the post said.

More closings:

• Bankrupt restaurant chains permanently close popular locations
• Major retail chain closes 35 stores nationwide, no bankruptcy
• Another major retail chain closes warehouse operations

Customers expressed their dismay on Facebook.

“This hurts. I absolutely LOVED the flight nights!!!! I will miss you all including the amazing Mel. Thank you guys for all the fun times and best of luck!!” customer Michelle Green posted on Facebook.

“This is really sad news! I will really miss dancing there and listening to good bands,” customer Sydney Anne posted on Facebook.

After opening its distillery in 2019, Kingfly evolved into an events space after the Covid pandemic subsided, the Facebook post recalled. The events space hosted weddings, retirement parties, wakes, drag and burlesque shows, birthday parties, jazz nights, baby showers, corporate events, nonprofit fundraisers, and music performances.

Kingfly Spirits distilled products:

• Vodka
• Blended Bourbon Whiskey
• Gin
• Rye
• White Rum
• Spiced Rum
• Limoncello Source: Kingfly Spirits

“So while spirits is in our name, it was your spirit and passion for what we do that kept us going through all of it. Thank you!” the post continued.

“If you still have a bottle of Kingfly on your bar, pour one out and raise a glass to our closing team here, as we are going out on a high note with the best professionals, friends and trusted allies a company could ask for in this wild and wonderful business. Cheers to you.”

Distillery had a birthday bottle sale

Kingfly celebrated seven years in business on Jan. 31 with a 50% off bottle sale, which likely eliminated the need to have a final bottle sale.

With the business closing, the spirits distillery exits a building that was originally a carriage house built in 1906, in Pittsburgh’s Strip District, and which Kingfly’s owners renovated and restored, according to its website.

The owners’ hard work and dedication earned them a Pennsylvania Historic Preservation award for their “meticulous attention to design and restoration detail,” the website said.

U.S. spirits supplier sales 2025:

• Spirits sales: $36.4 billion, 2.2% decline
• Ready-to-drink cocktails: $3.8 billion, 16.4% increase
• Tequila and mezcal: $6.4 billion, 4.1% decline
• Vodka: $7 billion, 3% decline
• American Whiskey: $5.1 billion, 0.9% decline Source: The Spirits Business

Related: Popular pizza dining chain closing 100s of restaurants nationwide