Diageo Pauses Production at Dickel and Balcones Distilleries
According to a report published at the website the Spirits Business today, drinks company Diageo has paused production at two of its American distilleries—Cascade Hollow in Tennessee, where George Dickel Tennessee Whiskey is produced, and Balcones in Waco, Texas. This seems like more bad news for Diageo, which has paused production at several other operations over the past year, but at the moment the company line is that this is all about efficiency and planned shutdowns.
According to the article, Cascade Hollow, the home of George Dickel which is located in the small town of Tullahoma, has been temporarily closed, although the visitor center remains open and there have been no layoffs. Balcones, the small Texas distillery that Diageo acquired in 2022, paused both distilling and barrel filling operations on August 17 resulting in the loss of 17 jobs, although it is still open to visitors. We reached out directly to Diageo for comment, and as is usually the case these production pauses are said to be temporary and part of a larger plan.
Regarding Balcones, a Diageo spokesperson said this is an annual shutdown period meant to support efficiency and productivity goals. “Since we are ahead of schedule with the volume we produce at the site, this year we decided to temporarily pause our distilling operations and barrel filling activity through June 2026,” read the statement. “During this time, employees will work on strategic projects, conduct trainings to continue building capabilities and maintenance processes to position our sites for a successful start of our next fiscal year.” In regards to Cascade Hollow, the statement said the following: “As we are ahead of schedule with the volume we produce at our Tullahoma, Tennessee facility, Diageo decided to temporarily pause distilling operations and barrel filling activity through this fiscal. No jobs were impacted as a result of this pause.” Diageo also announced that it was ceasing production at one of its scotch distilleries, Teaninich.
If this language sounds very familiar, that’s because you’ve heard it before—and not just from Diageo, but from other companies that have paused production at distilleries. Over the past year, Diageo also halted production at its Roe & Co. distillery in Dublin and at its carbon-neutral distillery in Lebanon, KY where Bulleit Bourbon is partially produced, and announced that its Crown Royal bottling plant in Canada would close next year. Other distilleries that have paused operations include Pernod Ricard’s Midleton Distillery, where Jameson and Redbreast are produced, and Brown-Forman’s Glenglassaugh distillery. Even MGP in Indiana announced that it was scaling back its whiskey production.
The bottom line is that the future of the spirits industry remains very uncertain as demand has decreased and new tariffs have been implemented over the past year. All of these production pauses could indeed be temporary, but it’s best to take the PR speak with a grain of salt when it comes to explanations about why this is happening, given the current economic climate and credible reports of downturns in consumption and sales. We will continue to update you as the situation unfolds.
