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US-based spirits and ingredients company MGP Ingredients has announced plans to temporarily idle distilling operations at two of its Kentucky facilities as it adjusts production to current inventory levels.

The affected sites are Limestone Branch Distillery in Lebanon and Lux Row Distillers in Bardstown. The suspension will take effect on 1 May 2026.

MGP will continue distilling at its Lawrenceburg, Indiana site, its largest facility, to support ongoing demand from its brands and customers.

The company said operations at the two Kentucky sites could resume once inventory levels stabilise, potentially within 12 months. The move will affect 33 employees, with MGP stating it is working with those impacted during the transition.

Other activities at the sites, including warehousing, bottling and barrel programmes, will continue. Visitor centres will remain open, offering tours, tastings, retail and other on-site experiences.

Julie Francis, president and CEO of MGP, said: “The American whiskey market continues to be structurally oversupplied, with excess capacity and elevated inventory. Like many companies across the industry, we are navigating a challenging environment and taking steps to better align our operations with current inventory levels while supporting our efficiency and productivity goals."

"As a result, we have made the difficult decision to temporarily idle distilling operations at these two facilities. This decision was not made lightly. We are grateful for the contributions of our teams, committed to supporting those impacted, and remain confident these distilleries will continue to play an important role in our business in the future.”

MGP said the temporary idling will not affect product availability for customers and reaffirmed its full-year 2026 financial guidance.