When one thinks about alcohol produced in America, there are two things that come to mind, Moonshine and Whiskey. In fact the whiskey industry is so legendary that the International Wine and Spirits Competition is planning to return to the US for a second straight year to judge North American whiskies. But, amidst all the glitz and glam, there are some troubles and the industry might need to change and fast to be able to survive them.
Dawn Davies, the head of whiskey judging for the IWSC spoke quite reverently about the product, “I think we’ve only just scratched the surface of what American whisky can offer and the amazing liquid that its distillers are turning out. That’s why we are here again to shine a spotlight on what is happening here and to help introduce it to the rest of the world. Outside of brands like Jack Daniels, Makers Mark, Buffalo Trace, and a few others, the world really doesn’t know about all the amazing liquid being produced in America.”
The issues with the whiskey industry in America
But with all the new and exciting companies, some are being left behind, like Westward Distilling, pioneer in in the fledgling American single malt whiskey movement, who had to file for bankruptcy protection a few weeks ago. And they are not the only ones having trouble. Since 2022 when the market hit a high (Kentucky distillers produced a record 2.7 million barrels) sales have gone down quite steadily and the new Trump tariffs are not going to help the market get back up from the -2% in 2024.
Davies is one of the people that is seeing the writing on the wall, and to a point blames the saturation of the market and the lack of differentiation between the companies “It’s a tough landscape for whisky distillers worldwide right now with the economic uncertainty and shifting consumer preferences. It is forcing the industry, especially in the United States, to adapt and get back to the basics of telling their story to drinkers and justify to them why they should reach for their bottle. Winning awards at events like IWSC can help brands break into new markets and influence buyers to bring in their whiskies.”
This is what we saw happen previously with craft beer, where companies started cropping up and producing “unique flavors and techniques” that then saturated the market and went nowhere because of lack of brand recognition, but still took away the business of bigger brands causing consumers to stop partaking in the market.
Davies emphasizes that for whiskey brands to thrive, a return to foundational principles is essential. Highlighting what sets their product apart, through transparent storytelling about craftsmanship, sustainability practices, and genuine production methods, that can better connect with younger buyers. Rather than relying heavily on elaborate marketing campaigns, brands are encouraged to inform and engage consumers about the unique qualities of their whiskey.
He does still have a lot of hope for the industry, as he explains “I think it’s an unfortunate time for American single malt because it should be having its moment in the market, but the economic pressures are making it difficult for many distillers to thrive. Last year, we were introduced to some pretty amazing liquid that would thrive on the world stage. The potential is there, but the industry needs to ensure that these spirits receive the attention and appreciation they deserve.”
But in the end, professionals and competitions can only do so much, it is up to consumers to engage in the content and with the companies, and while whiskey has remained popular for centuries, the changes in the industry and the rising costs due ot the tariffs may steer some people away permanently.