MGP Ingredients sees 60% drop in whiskey sales amid industry glut

MGP Ingredients Inc., a leading contract distiller, released its second‑quarter 2026 results showing a sharp contraction in its core whiskey business. Consolidated sales fell 15% year‑over‑year to $124.4 million and gross profit dropped 20% to $46.5 million. The decline was driven by a 59% plunge in "brown goods" whiskey sales and a 42% fall in Distilling Solutions (contract‑distillation) revenue, which slipped to $29.2 million with gross profit down 40% to $11.3 million.

In contrast, the Branded Spirits segment posted a modest 3% sales increase, led by premium‑plus brands such as Penelope Bourbon (up 13%), Yellowstone (up 54%) and Everclear (up 13%). President and CEO Julie Francis attributed the weakness to a glut in the whiskey market but noted growth in aged and private‑label whiskey and expanded warehouse services as offsetting factors.