THE BOURBON RESOURCE JANUARY 2026
What the Beam shutdown means, industry earnings down, Buckner 13 HAZMAT review
HAPPY NEW YEAR!
I hope everyone had a great holiday season. Before we get to the news —- and there is a bunch —- I wanted to let you know of a few changes I hope to make in 2026.
First, the newsletter will remain free, so please pass it along to your family and friends.
When big news hits, like our first item, I’ll send out special (shorter) newsletters. There’s no need to wait a month, which is so 1860s (Pony Express and all). Not only do you need the news, but the analysis of what it means.
I’m considering an occasional “Bourbon Talk,” not to discuss favorite bourbons and do tastings (LOTS of people do that), but to talk about industry trends, values on the market, and interviews with bourbon personalities.
There’s a lot on the horizon for 2026.
THE BIG BOURBON RESOURCE NEWS
What Beam shuttering its main distillery means
Bah-humbug. The week before Christmas, Jim Beam announced it would shut down its main distillery in Clermont, KY, for one year, the latest blow to a bourbon industry reeling from oversupply, tariffs, and a public that’s cutting back on its alcohol consumption.
The news sent shockwaves across the bourbon world because Beam is the largest bourbon producer in the country, releasing more than 26 million gallons of whiskey annually. About eight million gallons are distilled at the main location. Clermont’s visitor center will remain open, and some of its operations will move to the Booker Noe plant in Boston, KY, CBS News reported. The Fred B. Noe craft facility in Clermont won’t be affected, CBS said.
The development capped a painful 2025 filled with lawsuits, defaults, and layoffs in an industry that just two years ago set a record for bourbon production in Kentucky, where 95% of U.S. bourbon is produced. Several factors have led to the bourbon slowdown, including over-expansion that resulted in oversupply and a younger generation more interested in non-alcoholic beer and mocktails than a Willet 13-year (kids these days, huh?)
According to Gallup, American adults are consuming alcohol at historic lows. Just over half (54%) say they drink alcohol, the lowest level in the 90 years Gallop has tracked results. Another report shows N/A beer sales surging 22.2% between November 2024 and November 2025.
So what’s next? Distilleries are closing operations to calibrate decreased demand with their robust supply. There’s only so much Beam, Maker’s, and Wild Turkey the public can drink.
That doesn’t mean prices will go down, because when do they? And it’s not like dropping the price of, let’s say, Old Forestor 100 to $22 from $24 will juice sales. At the same time, corporations may hold off on any price increases, a temporary boon for consumers.
We’re also likely to see more “allocated” products with higher price points hitting the market. The trend started in the second half of this year, with Stagg ($70), Angel’s Envy Cask Strength Bourbon ($250), and the Russell’s Reserve Rickhouse ($300) all on various shelves. The much sought-after (and overrated ) Blanton’s Single Barrel can be easily found in Kentucky for $100.
The bourbon giant MGP, in its earnings report, foreshadowed the allocated strategy in its Q3 2025 earnings report when it said: “Our premium plus sales increased by 3%, delivering another quarter of solid growth, as our targeted focus on our most attractive growth opportunities continues to take hold.” MGP projects an annual decrease in sales and earnings per share and says it will cut whiskey production in 2026.
The erstwhile bourbon journalist David Thomas Tao looked at bourbon trends for 2026 in Food & Wine magazine, and it’s worth a read.
AND THAT’S NOT ALL
Brown-Forman announced a drop in sales and, in its Q2 financials, blamed it in part on lower sales volumes from Canada, Germany, and the United Kingdom, all of which have been involved in tariff disputes with the United States. (The Kentucky Distiller’s Association has called for reciprocal, tariff-free trade). Brown-Forman, which distills brands such as Old Forester, Woodford Reserve, and Jack Daniel’s, said last year it would cut 12% of its workforce.
Ohio’s AM Scott Distillery filed for Chapter 11 bankruptcy on December 22 in the Southern District of Ohio, claiming assets of about $500,000 but debts between $1 and $10 million. Typically, Chapter 11 allows companies to remain in operation while reorganizing their debt. AM Scott sources its liquid from an unnamed Indiana distillery, which typically refers to MGP. It has bottled two standout whiskeys, its barrel-proof rye and 7-year bourbon. But the business has been beset by problems. One of its principals, Anthony M. Scott, has been indicted on one count of theft and one count of passing bad checks in Mercer County (OH). The city of Troy, OH., told the Dayton Daily News it would wait for the outcome of the criminal cases before deciding whether to recoup a $400,000 loan for a failed brewery and bottle shop in that city.
AN UPDATED UNFORTUNATE RUNNING LIST
The Bourbon Resource has chronicled the industry’s ails since the start of the year. There’s so much going on that I figured I’d start a running list to keep track of it all. Here’s what’s happening:
The Garrard County Distillery, which opened its $250 million facility in January 2024, has closed and defaulted on $28 million in loans. It was home to All Nations bourbons and whiskey. The Kentucky Distiller’s Association has sued Garrard for $94,000 in unpaid dues, the Lexington Herald Leader reports.
Limestone Farms Distillery, which had planned to build and open facilities in Georgetown, has been sued in Scott County Circuit Court over alleged unpaid debts. The distillery has as much as $5 million in unpaid bills, according to the Lexington TV station WLEX (LEX 18)
In a press release, Brown-Forman announced it’s trimming its workforce of 5,400 by 12 percent in hopes it will save up to $80 million annually. The company will also close its barrel-making operation in Louisville, meaning 210 people at that facility will lose their jobs. All told, 650 people will be out of work. Brown-Forman produces, among other brands, Jack Daniel’s, Woodford Reserve, Old Forester, and Cooper’s Craft.
The Stoli Group USA, which owns Kentucky Owl bourbon, filed for Chapter 11 bankruptcy, citing, among other reasons, a slowing spirits market. Even worse, the bankruptcy has ensnared another major distiller. According to the bankruptcy filing, Kentucky Owl owes the Bardstown Bourbon Company more than $5.5 million. Stoli proposed paying a part of its bank debt with existing bourbon inventory, but a judge nixed the idea.
MGP, the massive bourbon producer in Lawrenceburg, IN., said some of its smaller clients are having trouble buying the bourbon they’ve contracted for, according to the Wall Street Journal. And, bourbon sales have declined over the last two years.
Green River Distillers in Owensboro, Kentucky, eliminated 26 positions. Less than three years ago, Bardstown Bourbon Co. purchased Green River and planned to grow its distribution from four states to 45 by the end of 2025. There’s no word on how the job cuts might impact plans.
LMD Holdings, the parent company of the Luca Mariano Distillery, has filed for bankruptcy. LMD, in its court filings, is tens of millions in debt. The distillery, in Danville, KY, makes bourbons and ryes. (I recently saw a bunch of Mariano products on the shelves in Kentucky, so they’re around).
Nelson’s Green Brier Distillery has laid off its general manager and the bulk of its production staff, the Nashville Scene reported. The distillery remains open, according to its website.
A district court judge ordered Uncle Nearest placed under receivership after one of its lenders claimed the whiskey company defaulted on $108 million in loans. The company still operates.
The global conglomerate Diageo paused distilling and bottling operations at Cascade Hollow Distillery, which produces George Dickel, according to The Spirits Business. The visitor’s center at the Tullahoma, Tenn., facility remains open.
THE BOURBON RESOURCE REVIEW
Augusta Buckner’s Limited Edition 13-year Single Barrel Unfiltered Cask Strength bourbon
Proof: 141.1 🔥HAZMAT
MSRP: $230
Augusta Buckner’s Limited Edition 13-year Single Barrel Cask Strength bourbon
Short take: This is a Jerry Lee Lewis bourbon because goodness gracious, it’s a great ball of fire (in a good way).
History: The Augusta Distillery launched in 2018, so it’s relatively young. It started as a bottler but broke ground on a $23 million facility in Augusta, KY, on the banks of the Ohio River. The company gets its product from an undisclosed Kentucky distillery, but now distills its own product on-site.
Augusta Buckner’s Limited Edition 13-year Single Barrel Cask Strength bourbon
Mash bill: N/A
Let’s taste it:
🛏 Rested for 15 minutes in a Glencairn glass
👉🏻Nose: Maple, caramel, vanilla, crisp apple, oak
👉🏻Taste: Maple, cream, vanilla, orange zest, caramel
👉🏻Finish: Maple, cinnamon, cardamom, oak, pepper
Augusta Buckner’s Limited Edition 13-year Single Barrel Cask Strength bourbon
Summary
Bourbon lore claims a group of enthusiasts coined the term HAZMAT to denote any whiskey over 140 proof because it’s so dangerous the FAA won’t let you fly with it. Seems alcohol that strong is classified as a hazardous material. Really. In other words, we drink a beverage that’s so potent the federal government thinks it could explode and take down a passenger jet. Nice,
Of course, that’s led to a boom (no pun intended) in the ultra-high proof market. These are bourbons not for the faint of heart. My friend, Larry, would likely need a gallon of ice just to consume a thimbleful.
But for something as powerful as John Wick tearing up bad guys, it’s fairly smooth neat. That’s how I had my first taste, and it takes a minute to get through. It’s as thick as honey straight from the bees, with a pronounced maple dominating the nose, taste, and finish. The secondary flavors bring a smooth and light texture that softens the pour.
Add a little ice, and the flavors don’t pop, they explode (there I go again). Now, when I say little, for me, that means the smallest ice cube I can find. A drop or two of water would have the same impact. The whiskey transforms into a deep, rich delight that coats the mouth like good gelato. I took a sip and didn’t take another for 17 minutes (I timed it) because the complexity danced with the grace and power of a ballerina performing Swan Lake.
Conclusion – Augusta Buckner’s Limited Edition 13-year Single Barrel Cask Strength bourbon
I was lucky. An acquaintance came across a few bottles and sold them at MSRP. I got one and my friend Bob another. It’s worth every penny. In today’s bourbon market, even with the downturn, $300 is becoming the top point for exceptional bourbon, like the Russell’s Reserve Rickhouse, Russell’s 15-year, or the Barrel Craft Spirits 15. I’m going to buy a second bottle since, as of this writing, the Augusta Buckner’s Limited Edition 13-year Single Barrel Cask Strength bourbon was available on the website for about $270, including taxes and shipping.
Understanding that’s a steep price for many, do this instead of buying a bottle for yourself. Find a group of friends and split the cost of the bottle. Have a great steak with it. You’ll talk about this for years.
Have you tried the Augusta Buckner’s Limited Edition 13-year Single Barrel Cask Strength bourbon? What do you think?
THE BEST BOURBONS UNDER 90 PROOF
Readers of this newsletter know I love high-proof bourbons as much as I love praline pecan ice cream. But not everyone has the same taste. Many of the whiskeys in the December awards newsletter were of the 100-plus proof variety, leading several of you to ask, Dude, what about stuff that won’t make my sphincter burn?
There are some excellent bourbons between 80 proof and 90 proof. All are far smoother and more approachable for those who prefer a lighter touch. On the nights that I don’t feel like a big pour, these are the ones I reach for, in no particular order:
Deadwood Bourbon Whiskey: At 81 proof, this Proof and Wood product is a very easy drinker that needs no water or soda. Nice sweet caramel and banana notes. $25 MSRP
IW Harper 4 year, 82 proof. The Diageo product is light and sweet with hints of vanilla and honey. $35 MSRP.
Benchmark Old No. 8, This Buffalo Trace product shines with vanilla and a hint of spice. While the flavors won’t knock your socks off, the price will. It’s $10, and better than any low-shelf bourbon (Old Crow, Kentucky Gentleman) you’ll find
Old Forester 86: The lower-end of the OF line does a fine job with the typical bourbon flavors (vanilla, caramel, oak) and is always a must-have on the shelf. It’s not to thin and not too thick and appeals to different tastes. MSRP: $25
Basil Hayden 10-year. My wife’s favorite bourbon because it has what she likes —- lots of vanilla, rye, and no burn. 80 proof, MSRP $70 (The Basil Hayden Kentucky Straight Bourbon Whiskey, at $30, is a far better value).
Evan Williams Black Label: The big charcoal/oak flavor makes this an 86-proof gem. It has a bit of vanilla and honey that round out the flavors, and the price is right: $15.
That’s it for this month! If you’re an NBA fan, look at the Knicks Film School newsletter, which has the smartest commentary on the New York Knicks and NBA basketball. You can click on the button below to learn more.
Ray Marcano writes and publishes the Bourbon Resource monthly, and he’s president of the 32 Staves Society. He’s a bourbon lover and long-time journalist who freelances for some of the country’s largest media brands. He’s the former national president of the Society of Professional Journalists, a two-time Pulitzer juror, a Fulbright fellow, and was recently named best columnist in the state of Ohio.
I had no idea the industry was in this perilous place, although the decrease in alcohol consumption doesn't shock me, just based on trends I've been noticing with people my age and younger over the last several years.
Trump's tariffs do no good for anybody but Trump. He's a failing dictator and hopefully we can get back to normalcy soo
R.J. Weick