...
By Hugh Cameron
Reporter
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
Another American spirit company has filed for bankruptcy protection, joining a yearlong string of Chapter 11 filings for the industry as it grapples with policy changes, international retaliation and a general decline in domestic alcohol demand.
On Tuesday, Ohio-based A.M. Scott Distillery filed for Chapter 11 protection with the bankruptcy court for the Southern District of Ohio.
Newsweek has contacted the company through its website outside of regular hours for comment.
Read More on News
Why It Matters
U.S. liquor companies have this year battled a blend of international boycotts and the effects of catering to ever-shrinking numbers of American drinkers. The first of these pressures has already led to sharp declines in spirit sales abroad, and experts expect firms will be struggling with the longer-term challenges for the foreseeable future.
What To Know
A.M. Scott Distillery was founded in 2022 in Troy, Ohio, and offers a range of spirits including gin, vodka and an assortment of bourbon and rye whiskeys. In Tuesday’s filing, the company listed between 100 and 199 creditors, estimated assets of up to $500,000 and liabilities in the range of $1 million to $10 million.
In court documents, the company listed mounting losses and debts, contractual disputes with construction partners, and the need to close certain retail locations as contributing to the decision.
And Tuesday’s filing makes A.M. Scott Distillery one of several struggling distillers who have been forced to seek bankruptcy protection over the past 12 months. Others include Boston Harbor Distillery, House Spirits Distillery, Stoli Group USA and its Kentucky Owl brand, and LMD Holdings, the parent company of the Danville-based Luca Mariano Distillery.
...
This week, Jim Beam also announced that it would be halting production at its flagship distillery in Kentucky for 2026. In a statement to the BBC, the company said the pause would allow time to "invest in site enhancements," and that it was in the process of assessing the levels of production that would "best meet consumer demand."
The backdrop to this is the declining preference for alcohol in the U.S., particularly pronounced among younger Americans. In an August survey, Gallup found that only 54 percent of U.S. adults say they consume alcohol, the lowest rate in its 90 years of polling.
And trade disputes in 2025 have added to these demand-driven woes. Since March, several Canadian provinces have pulled American alcohol from store shelves, and a grass-roots boycott of U.S. spirits is ongoing in response to President Donald Trump’s tariffs as well as his repeated reference to the country as a prospective "51st state."
Such policy-driven boycotts have extended beyond Canada, and appear to be having an impact on U.S. alcohol sales abroad. In its mid-year report, released in October, the Distilled Spirits Council of the United States said exports declined 9 percent year over year, with Canada (-85 percent), the United Kingdom (-29 percent) and Japan (-23 percent) seeing the sharpest drops.
What People Are Saying
The Distilled Spirits Council, in its mid-year report, wrote: "International consumers appear increasingly inclined to substitute U.S. spirits with domestic alternatives or imports from other countries. This shift may reflect a broader sentiment that U.S.-imposed tariffs are unfair, prompting consumers to support their domestic industries or seek non-U. S. products in response."
A.M. Scott Distillery, in a court filing, said: "While current year-over-year performance is down approximately 75 percent, the business is positioned for a strong rebound."
"With a simplified structure, energized team, and revitalized brand strategy, A.M. Scott Distillery is well positioned to emerge stronger and more sustainable than ever before," it added.
Spirit reviewer and consultant F. Paul Pacult told Newsweek in October: "The Canadian boycott in response to tariffs is only one of several reasons why American whiskey producers are feeling edgy and recalibrating their profit and loss forecasts. Other factors of concern include major changes in generational consumption preferences, the negative press generated by several health-related studies that have pointed to potential dangers of alcohol, the rise in cannabis legalization, and, in some cases, blatant overproduction. All of these factors are now being taken into account by whiskey distillers as they prepare for what might well be a few lean years."
What Happens Next
A.M. Scott Distillery will continue to operate as it attempts to restructure and emerge from the bankruptcy process.
View 0 Comments
Submit Correction
View Editorial & AI Guidelines