"Following what was a period of high sales and rapid expansion, the market is contracting for a number of reasons. Alcohol consumption has declined in recent years, for one thing, but international response to U.S. tariffs has also hit bourbon sales hard, with exports of the liquor dropping significantly in 2025. Many icons of American whiskey have been affected, with Brown-Forman - parent company to Jack Daniel's, Woodford Reserve, and Old Forester, among others - laying off a significant portion of its workforce."
"The market has started to correct as that demand has faded, resulting in a significant surplus of the spirit. This surplus is especially evident for many finer bourbons, which were produced at the height of the boom but take longer to reach the market due to their extended aging. "Everyone has to figure out a way to sell this high-quality whiskey in volume," Sussman said, "and that means consumers can expect prices to come down.""
A bourbon surplus has emerged after a decade of rapid expansion and record production aimed at surging global demand. Declining alcohol consumption and international responses to U.S. tariffs produced steep export drops in 2025, including an 85% fall to Canada. Major producers have felt the effects, with Brown-Forman cutting staff and Jim Beam halting production for the year. Overproduction during the boom created significant inventories, particularly of longer-aged, high-quality bourbons. Producers are seeking ways to sell this volume, which is likely to pressure retail prices downward and benefit consumers.
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