The United States liquor industry faces problems on several fronts. First, Americans don’t drink as much as they used to.
“The percentage of American adults who drink alcohol has fallen to 54%, the lowest percentage point in Gallup’s nearly 90-year trend. This is consistent with a growing belief among Americans that moderate alcohol consumption is harmful to health, now a majority view for the first time,” Gallup reported.
Gallup has tracked Americans’ drinking behavior since 1939 and their views on the health effects of moderate drinking since 2001.
“From 1997 to 2023, at least 60% of Americans reported drinking alcohol. This number dropped to 62% in 2023 and 58% in 2024, before reaching 54% today. Before the most recent survey, the rate was less than 60% more than 10 times, and was 5195% lower in the early period. Recorded in 1958, “Studies have shown.
Additionally, President Donald Trump’s tariffs have led to a sharp drop in alcohol exports to some countries.
“After a banner year for US distilled spirits exports in 2024, US spirits exports fell more than 9% year over year in the second quarter, due to ongoing trade tensions,” according to a new report released by the Distilled Spirits Council of the United States (DISCOS).
DISCUS CEO Chris Swanger said US spirits exports to Canada are down 85%, falling below $10 million in the second quarter of 2025. US spirits sales in Canada also fell 68% in April 2025.
“US spirits exports experienced significant declines in all major international markets. Exports to the EU – the US spirits industry’s largest market – fell 12% to $290.3 million, while exports to the UK fell 29% to $26.9 million and to Japan 23% to $21.4 million,” according to the report.
Those dual problems have led to several bankruptcies in the US liquor space, and now, AM Scott Distillery, which offers a collection that includes our vodkas, two gins, and three bourbons, has filed for Chapter 11 bankruptcy protection.
AM Scott Distillery has struggled in recent months as its founder has faced legal troubles.
“Troy businessman Anthony Michael Scott, owner of AM Scott Distillery and former owner of The Mayflower, faces felony charges in Mercer County. Scott, 44, of Troy, was indicted on two counts by a Mercer County grand jury on March 20.” Miami Valley Today reported.
Scott pleaded not guilty to the charges.
It’s unclear from court records or company filings whether the legal matters involving the founder are connected to the bankruptcy case.
Aside from its owner’s legal troubles, the AM Scott brand has built a devoted audience during its relatively short existence.
“AM Scott Distillery planted its roots in Troy, Ohio in 2022. Its lineup of handcrafted spirits currently includes vodka, whiskey and gin. AM Scott Distillery prides itself on being approachable, affordable and approachable – perfect for amateurs and veterans alike,” shared on its website.
The company released its first collection in 2023.
More bankruptcies:
“The full collection is out, and we’re proud of the product,” AM Scott Distillery President Anthony Scott told the Dayton Daily News. “It was great to see so many familiar faces stop by, and we also met many new customers. We’re excited about the release, and our team is committed to continually developing new products.”
Now, the company has been forced into Chapter 11 bankruptcy.
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The wine industry as a whole has struggled.Pixabay
Company: Located at AM Scott Distillery, LLC (doing business as Scotty’s Bottle Parlor). Dayton/Troy, Ohio.
Chapter 11 (Reorganization).
Court: US Bankruptcy Court, Southern District of Ohio (Dayton).
Issue Number:3:25-bk-32562.
Date Filed:December 22, 2025.
Filing Type:Voluntary application: The company chose to seek protection.
Status: Listed as debtor in possessionThis means that the business generally continues to operate during the restructuring. Source: Bankruptcy Observer
AM Scott Distillery has been active as A Craft Spirit Maker in Ohio, selling vodka, gin, bourbon and operating related venues such as Scotty’s Bottle Parlor in Troy, the Dayton Daily News reported.
The distillery shifted focus first away from non-core hospitality enterprises According to the Dayton Daily News, Mayflower is moving away from operating the entertainment venue and toward manufacturing and distribution.
No details about the company’s debts and assets or the company’s creditors have been released.
“The decline in bourbon and whiskey sales is part of an overall decline in spirits sales. After growing during the pandemic, sales of all spirits fell in 2023 for the first time in 30 years. Much of this is due to changing habits among young drinkers and concerns about the health effects of alcohol,” according to Tasting Table.
A large list of brands, both large and small, have filed for bankruptcy.
Westward Whiskey (House Spirits Distillery LLC): Filed Chapter 11 bankruptcy due to liquidity challenges (April 2025); According to PacerMonitor, continuous operation during reorganization.
Boston Harbor Distillery: Filed for craft spirit distillers (whiskey, rum, gin, etc.). Chapter 11 Bankruptcy (March 31, 2025), The Street reported.
Devil’s River Distillery LLC: Texas whiskey distiller filed Chapter 11Looking to restructure, according to The Street.
JJ Pfister Distilling Co: Filed for Sacramento spirits manufacturer Chapter 11 After ceasing operations, Street shared.
Lee Spirits Co. Inc.: Filed for Colorado Distillery Chapter 11 and discontinued operations (March 8, 2024), reports PacerMonitor.
Garrard County Distilling Company (Kentucky): operations have been closed and large debts have been paid in bankruptcy proceedings; Workers furloughed, Lexington reported here.
Stoli Group (USA) LLC and Kentucky Owl, LLC: Filed for the US arm of the Stoli brand (vodka, bourbon, rum, tequila, gin, etc.) Chapter 11 Bankruptcy (November 2024). Large portfolio and significant liabilities, Distillery Trail reported.
52 Aussie Distilling (Colorado): Filed for Chapter 7 According to bankruptcy, business exit, soul business.
Related: 56-year-old McDonald’s rival closes more than 800 restaurants
This story was originally published by TheStreet on December 23, 2025, where it first appeared in the Retail section. Add TheStreet as a preferred source by clicking here.
