State of the Contract Whiskey Market

May 6, 2025 | Insights

By now, it’s obvious. There are significant challenges in the contract whiskey market. Excess aged inventory with no clear pathway to a branded bottle. Desperate companies cutting pricing attempting to stay afloat. Too much contract capacity and too few customers to support them all. And, there are more.

As a result, contract start-ups are beginning to shutter, larger contract manufacturers are reducing production, and others are laying off large numbers of employees. Unfortunately, many of the changes are necessary, and the market needs to correct itself. It’s happening now.

We’re often asked, how is Whiskey House of Kentucky thriving in this climate? The answer is simple. We’re consolidating the best brands and companies into one facility. Our design, operation, technology, strategy, and team are unlike anything else in the industry. The solutions we provide are desperately needed, regardless of current market conditions.

After creating and selling Bardstown Bourbon Company, the founders of Whiskey House made a deliberate decision to get back into the market, knowing full well storm clouds were on the horizon. Customers with great brands, now more than ever, need to produce the highest quality, differentiated liquid with a production partner that is closed to the public, not distracted by building its own brands, isn’t competing against its customers in the market, and focuses all its attention on providing exceptional customer service.

For this reason, we built the most advanced distillery in the world – – and the only one designed from the ground-up – – to produce the highest-quality, custom whiskey. Our advanced automation not only allows us to operate with a level of efficiency unmatched in the industry, but we’ve also created a facility that enables incredible flexibility, including the ability to test and scale production, which we now do for several of the largest spirits companies in the world.

Most importantly, instead of running hospitality programs for our own brands and building sales teams domestically and internationally, we focus all our resources on our customers. With more than 347 years of manufacturing and direct whiskey making experience, our team helps our customers create differentiated liquid, build sustained brand value, and overcome any challenge. We are truly long-term production partners for our customers.

As we approach our one-year anniversary, Whiskey House is continuing to grow. In the past 10 months, we’ve produced nearly 90k barrels, 20 mashbills, and more than 53 unique recipes for our growing list of exclusive customers. Despite the current market fluctuations, our optimism for the future of Whiskey House and the American Whiskey industry remains unwavering. With a solid foundation and a bright outlook, we could not be more excited for the future!

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