The distilled spirits industry had a disappointing year in 2025, as spirits supplier sales declined by 2.2% to $36.4 billion, according to the Distilled Spirits Council of the United States.
“While total U.S. spirits sales edged down 2.2% in 2025, the spirits industry remains resilient, driven by innovative products that continue to spark consumer interest,” said Chris Swonger, CEO of the Distilled Spirits Council.
“Against a challenging backdrop of weakening consumer confidence and persistent economic pressures, American adults continue to choose distilled spirits, with ready-to-drink cocktails standing out as a clear favorite,” Swonger said.
The decline in sales, however, led certain distilleries to close facilities, and in some cases, close down their business.
Deep Eddy Vodka closes tasting room
Distilling company Deep Eddy Vodka will close its facilities in Dripping Springs, Texas, on June 13 and transition the facilities in a sublease agreement to another Texas distillery not affiliated with Deep Eddy, Goodnight Loving Vodka, The Spirits Business reported.
Deep Eddy was founded in Austin, Texas, in 2010 and expanded to a second distilling operation at the Dripping Springs facility in 2014. The company upgraded the facilities to include a tasting room and visitors’ center.
Heaven Hill owns Deep Eddy Vodka
Huge whiskey producer Heaven Hill Distillery, which also distills the Evan Williams, Elijah Craig, Five Brothers, Old Fitzgerald, and Larceny brands, acquired Deep Eddy in 2015 and moved all distilling operations to Buda, Texas in 2017.
Heaven Hill invested almost $1 million in upgrades to the Dripping Springs facilities in 2019, which included adding a 38-foot bar, an innovation bar built around the original Deep Eddy column still, a new bottling line, a performance stage, a new merchandising area, and seating for 200 people.
Dripping Springs had Deep Eddy’s only tasting room. The company has not indicated whether it will open a tasting room and visitors’ center at the Buda facility, which will continue to be Deep Eddy’s distilling facility.
“Our vodka continues to be crafted in Buda, and we’re more committed than ever to Austin, the place where it all started,” Deep Eddy said in a website message. “You’ll keep seeing us around town through local events, partnerships, and plenty of good times.”
In addition to its flagship Deep Eddy Vodka product, the company distills eight other flavored vodkas, including Lemon, Lime, Peach, Ruby Red Grapefruit, Pineapple, Orange, Cranberry, and Sweet Tea.
Deep Eddy isn’t the only distiller shutting down operations, as two other spirits distilleries recently closed facilities, blaming a decline in alcohol consumption.
Other spirits distillers close facilities
MGP Ingredients, which said it will close distilling operations at its Limestone Branch Distillery in Lebanon, Ky., and Lux Row Distillers in Bardstown, Ky., for a minimum of one year beginning May 1, 2026, according to a company statement.
MGP Ingredients’ premium spirits brands include Penelope, Rebel, Remus, and Yellowstone bourbons, Pearl Vodka, El Mayor tequila, and Everclear, the 190-proof grain alcohol.
MGP operates a tequila distillery in Arandas, Mexico, and has bottling operations in Missouri, Ohio, and Northern Ireland.
Kingfly Spirits goes out of business
Also, Popular vodka and whiskey distillery Kingfly Spirits abruptly shut down its Pittsburgh Strip District operations on Feb. 11, posting a farewell message on its Facebook page on the same day.
The distillery, tasting bar, and event space, which opened in February 2019, posted a message on its website about a week earlier, saying, “We are making some structural repairs in February,” but it apparently changed its intentions.
“After seven years of many ups, downs and alllll arounds, the team at Kingfly toasts you for the last time,” Kingfly said in a Feb. 11 Facebook post. “As of today, we are moving on to the next chapter of life and could not be more grateful for your friendship, patronage, support and celebration of what we did together.”
Heaven Hill Distillery brands:
- Heaven Hill
- Henry McKenna
- Bernheim Original
- Rittenhouse
- Larceny
- Old Fitzgerald
- Parker’s
- Pikesville
- Elijah Craig
- Evan Williams
- Mellow Corn
- Source: Heaven Hill Distillery
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