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MGP Ingredients to close Kansas distillery

Ingredients and distillery products firm, MGP Ingredients, has announced plans to close its grain-neutral spirits and industrial alcohol distillery in Atchison, Kansas. The decision to close the Kansas distillery is "consistent with the company's plan to address profitability headwinds associated with its grain-neutral spirits and industrial alcohol products within its distilling solutions segment". However, the company said that it will continue to operate and invest in its ingredient solutions business in Atchison, including the previously planned $16.5 million texturized protein facility, which is scheduled to be completed by the end of this year, and its distillery operations in Lawrenceburg, Indiana. David Colo, president and CEO of MGP Ingredients, said: “After careful deliberation, we have concluded that the closure of our Atchison distillery is a necessary step to further align the product categories we participate in and their supporting operations, consistent with our long-term strategic objectives". He continued: "The additional supply of grain-neutral spirits and industrial alcohol that has entered the market during the past few years has had a meaningful and structural impact on the market. Combining these market factors with the increase in local corn basis costs during this same time frame has resulted in these product lines no longer being economically viable for the company." "The decision to close the Atchison distillery, unfortunately, represents the best path forward. We are grateful for the unwavering support and contributions of our distillery employees, customers, suppliers and the people of Atchison. We are committed to ensuring a smooth transition as we wind down operations at the distillery between now and the end of the year, and we look forward to continuing to support the Atchison community.” The distillery is expected to close in January 2024.

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