ELIZABETHTOWN, Ky. — Whiskey House of Kentucky, one of the state’s largest contract whiskey producers, is reducing its workforce by nearly one-third as the bourbon industry continues to navigate a period of softer demand and growing inventories.
The Elizabethtown-based company announced June 2 that it will lay off 22 employees, approximately 30% of its workforce, citing production levels that are currently operating at about 60% of capacity.
The move reflects broader challenges facing Kentucky’s bourbon industry after years of rapid expansion and record production.
“As an industry, we are navigating a cyclical slowdown, and our responsibility is to make thoughtful decisions that protect the long-term health of our company, our customers, and our employees,” Whiskey House CEO David Mandell said in a statement. “We were among the last contract manufacturers to make workforce adjustments, and we fully expect to be among the first to bring employees back as demand returns.”
Founded in 2021 by bourbon industry veterans David Mandell, John Hargrove and Daniel Linde — the team behind the growth of Bardstown Bourbon Company — Whiskey House of Kentucky was built to serve the booming contract distillation market. The company specializes in producing customized American whiskey for brands that either lack their own distilling facilities or seek unique mash bills and production specifications.
Located on nearly 180 acres in Elizabethtown’s T.J. Patterson Industrial Park, the operation features a 110,000-square-foot distillery, state-of-the-art laboratory facilities and multiple rickhouses designed to support large-scale whiskey production.
Since beginning operations in mid-2024, Whiskey House has produced more than 130,000 barrels of whiskey for customers across the industry. The facility has the capacity to produce approximately 112,000 barrels annually.
Employees affected by the layoffs will receive severance packages, continued benefits and job placement assistance, according to the company.
The workforce reduction comes amid mounting evidence that the bourbon industry’s explosive growth has entered a cooling phase. Kentucky distilleries reported a record 16.1 million barrels aging in warehouses during 2024, a 13% increase from the previous year. At the same time, whiskey sales have softened from record highs reached in 2022 as consumers face economic pressures and changing spending habits.
Industry leaders have increasingly acknowledged the need to balance production with current demand levels.
The Kentucky Distillers’ Association’s most recent economic impact report noted that producers will need to adjust inventory and production strategies in the short term while continuing to pursue new domestic and international growth opportunities.
Whiskey House joins a growing list of Kentucky whiskey producers making operational adjustments in response to market conditions. Several major distillers have announced production pauses, delayed expansion projects or reduced output over the past year as inventories continue to build.
Despite the layoffs, company leadership remains optimistic about the future.
Mandell pointed to a strong sales pipeline, expanding international opportunities and the long-term strength of American whiskey as reasons for confidence.
“By taking these actions now, we are ensuring that Whiskey House remains financially strong, operationally ready, and positioned to lead when growth returns,” he said.
For Kentucky’s bourbon industry, the announcement serves as another reminder that while long-term prospects remain strong, producers across the Commonwealth are adapting to a market that looks considerably different than it did during the industry’s recent boom years.
