#overproduction

#overproduction

Following what was a period of high sales and rapid expansion, the market is contracting for a number of reasons. Alcohol consumption has declined in recent years, for one thing, but international response to U.S. tariffs has also hit bourbon sales hard, with exports of the liquor dropping significantly in 2025. Many icons of American whiskey have been affected, with Brown-Forman - parent company to Jack Daniel's, Woodford Reserve, and Old Forester, among others - laying off a significant portion of its workforce.

The Covid-driven boom came at the end of a decade of steady growth and amplified already unrealistic expectations. Whisky is notoriously difficult to forecast, and many producers were caught out by the sudden spike in demand. Secondary market prices subsequently soared, and several major brands tried to capitalize by ramping up production and raising prices to match auction values. Both moves have proved costly.