The bourbon industry, once riding high on an explosive wave of growth, now faces a challenging future. Brown-Forman, the spirits conglomerate behind popular brands like Jack Daniel’s, Old Forester, and Woodford Reserve, has announced significant changes that are raising questions about the future of the bourbon boom.

In a recent investor update, Brown-Forman disclosed a series of strategic initiatives aimed at positioning the company for continued growth. However, part of these initiatives includes the difficult decision to lay off approximately 12% of its global workforce—roughly 648 employees. The company also revealed plans to restructure its executive leadership team and close its Louisville-based Brown-Forman Cooperage.

Brown-Forman, which also owns Herradura Tequila and Diplomatico Rum, had long been the only bourbon maker with its own cooperage. The closure of its Louisville facility marks a significant shift in how the company will source its barrels moving forward, as it will now rely on third-party cooperages. This is a notable change, especially considering that Brown-Forman had previously sold its other cooperage plant in Alabama in April to Independent Stave.

The End of the Bourbon Boom?

This news arrives at a time when many are questioning whether the bourbon boom is coming to an end. The Wall Street Journal recently published an article suggesting that the golden age of bourbon may be over. After decades of rapid growth, the alcohol industry is now facing numerous challenges.

factors contributing to this slowdown include:

• Changing Drinking Habits: Younger generations are drinking less alcohol, opting for healthier or non-alcoholic alternatives.
• The Rise of Dry Movements: Initiatives like Dry January and Sober October are gaining popularity, encouraging people to cut back on drinking.
• Health Trends: Medications like Ozempic and Wegovy, which curb the appetite for alcohol, are becoming more widely used.
• Alternative Products: Cannabis is becoming increasingly normalized, and low- and no-alcohol drinks are in higher demand.

In light of these factors, the bourbon market is facing a shift in demand, forcing distilleries to adjust their production. While some whiskey enthusiasts might benefit from this change—possibly finding it easier and cheaper to purchase coveted bottles like Blanton’s or Eagle Rare—the industry will likely continue to experience growing pains, including job losses and facility closures.

What Does This Mean for the Future of Bourbon?

With demand tapering off, bourbon producers may be forced to scale back their operations, leading to a slower-paced market. As Brown-Forman and other companies adjust to the changing landscape, the impact will likely be felt across the industry—from layoffs and restructuring to changes in how whiskey is produced and distributed.

For now, bourbon enthusiasts can expect some potential benefits, such as better availability and more affordable prices on popular bottles. However, the overall trend suggests that the bourbon boom, which had once seemed unstoppable, may be slowing down as the market adapts to new challenges.