MGP Reports Another Drop in Sales in a Soft Whiskey Market,
Just a few months ago, we reported that MGP, one of the biggest American whiskey distilleries, saw a drop in sales of nearly 25 percent. While that was bad news for the company, it also was in line with much of the other reporting out there detailing the slowdown that is currently affecting the whiskey industry. Well, some more bad news arrived late last week for MGP in terms of reduced sales and income, but the company is trying to put as good a spin on the situation as it can.
According to a press release issued by MGP on October 29, the third quarter of 2025 was bleak compared to that of the prior year. Consolidated sales decreased by 19 percent to $130.9 million, consolidated gross profit dropped by 25 percent to $49.4 million, net income fell by 35 percent to $15.4 million, and EBITDA (earnings before interest, taxes, depreciation, and amortization) dwindled by 29 percent to $32.3 million. According to the report, the decrease in sales was mostly due to “expected declines in brown goods sales”—in other words, whiskey—directly leading to the drop in profit.
MGP’s Branded Spirits segment, which includes in-house spirits brands under the Ross & Squibb name like Remus Bourbon, saw a sales decrease of three percent to $60.7 million compared to the previous year. But premium plus sales increased by the same amount, with Penelope Bourbon, which MGP acquired in 2023, leading the way. Distilling Solutions, the contract distilling arm of the company, saw a sales decrease of 43 percent to $40.9 million. The press release mentions that some of MGP’s larger customers completed their existing contracts and chose not to renew them as they balance inventory in this weakening market. Finally, Ingredient Solutions, which produces food-grade wheat proteins and starches, remained a bright spot for the company, with an increase of 9 percent which was even more than the 5 percent increase reported in August.
As mentioned before, the company is trying to put a positive spin on the situation. “Our third quarter results demonstrate the resilience of our business and our team’s ability to continue to deliver against our key initiatives amid ongoing industry headwinds,” said Julie Francis, MGP president and CEO, in a statement. “Our premium plus brands again delivered solid growth and our brown goods decline came in slightly better than anticipated. In our Ingredient Solutions segment, operational execution was below expectations, and we are taking decisive actions to address those challenges. These efforts, along with the continued focus and commitment of our team, supported solid third quarter results, and we believe they position MGP for sustained long-term value creation.”
Another spot of bright news for MGP that is worth mentioning is the recent release of the distillery’s best in-house whiskey brand—Remus Gatsby Reserve is back, a 15-year-old, cask-strength bourbon made from the distillery’s high-rye mashbill that is consistently excellent. Even a bourbon as good as this won’t be enough to change the distillery’s outlook in this tough market, of course, but we will continue to report on MGP as more news arrives.
