Another U.S. liquor brand files Chapter 11 bankruptcy

Industry Overview - The U.S. liquor industry is experiencing significant challenges, including a decline in alcohol consumption among Americans, with only 54% of U.S. adults reporting they consume alcohol, marking the lowest level in Gallup's nearly 90-year trend [1][2] - There is a growing perception that moderate alcohol consumption is detrimental to health, which has become the majority view for the first time [1] Consumption Trends - Historical data shows that from 1997 to 2023, at least 60% of Americans reported drinking alcohol, but this figure has decreased to 62% in 2023 and further to 58% in 2024, ultimately reaching 54% [2] - The rate of alcohol consumption has been below 60% fewer than 10 times since 1939, with notable lows recorded in 1939 and 1958 [2] Export Challenges - U.S. distilled spirits exports fell by 9% year-over-year in the second quarter of 2025, attributed to ongoing trade tensions, particularly following President Trump's tariffs [3] - Exports to Canada saw a dramatic decline of 85%, dropping below $10 million, while U.S. spirits sales in Canada decreased by 68% in April 2025 [4] - Exports to the EU, the largest market for U.S. spirits, fell by 12% to $290.3 million, with exports to the UK and Japan also experiencing significant declines of 29% and 23%, respectively [4] Company-Specific Issues - The combination of declining consumption and export challenges has led to multiple bankruptcies within the U.S. liquor industry, including A.M. Scott Distillery, which has filed for Chapter 11 bankruptcy protection [5] - A.M. Scott Distillery has faced additional difficulties due to legal issues involving its founder, Anthony Michael Scott, who is facing felony charges [6][7]