February Whiskey & Bourbon Industry Roundup

As always, this roundup is sourced from Mark Brown Newsletters and other sources, highlighting the most significant developments in the whiskey and bourbon industry throughout February 2025.

Becle Faces Profit Decline and Tariff Threats in the U.S.

Becle, the parent company of Jose Cuervo and Stranahan’s Whiskey, reported a 21% drop in Q4 profits, driven by declining sales and volumes in the U.S. and Canada. While the tequila category faced the brunt of the losses, Stranahan’s, a single malt whiskey brand under Becle, is also part of the company’s portfolio, meaning this downturn could have ripple effects across their whiskey business.

Adding to the challenges, Becle anticipates an $80 million financial hit in 2025 due to impending U.S. tariffs on Mexican imports. The company has been stockpiling inventory in the U.S. in anticipation of the March 4 implementation of the 25% tariffs imposed by the Trump administration. While tequila remains the primary concern, any disruptions in trade agreements could impact the broader spirits market, including whiskey.

Diageo Shuffles Leadership as It Looks to Strengthen Whiskey Brands

Diageo, one of the largest whiskey producers globally and the owner of Johnnie Walker, Crown Royal, and Bulleit Bourbon, announced a leadership shakeup for its Africa and Europe divisions. Hina Nagarajan will take over as President for Africa, while Dayalan Nayager will move into the role of President for Europe.

These changes come as Diageo faces shifts in consumer demand and increased competition in the whiskey sector, particularly in emerging markets. While no direct whiskey-specific changes were announced, the company's financial results revealed that Casamigos Tequila saw double-digit declines, prompting Diageo to focus more on whiskey and no/low-alcohol products. The restructuring could signal a renewed marketing push for key whiskey brands in the months ahead.

AI’s Role in the Whiskey Industry

Artificial intelligence is making waves in the spirits sector, with distillers implementing AI-powered systems to ensure batch consistency and improve production efficiency. The use of machine learning to predict harvest quality and optimize flavor profiles could revolutionize whiskey-making processes, particularly for craft distilleries looking to scale while maintaining quality.

Trademark Battle Erupts Over ‘Papi’ Whiskey and Bourbon

In a significant legal dispute, the owner of the trademark for "Papi" in wine and spirits has sued the maker of "Papi’s Bourbon" for alleged trademark infringement. The lawsuit, filed in New Jersey federal court, claims that Duke & Dukes Enterprise LLC’s use of "Papi’s Bourbon" creates confusion and violates the existing Papi brand's intellectual property rights.

While the case is still pending, this lawsuit highlights the importance of branding and trademarks in the whiskey and bourbon industry. With the rise of craft distilleries and celebrity-backed whiskey brands, protecting brand identity has become increasingly vital. The outcome of this case could set a precedent for future disputes in the sector.

Endeavour Group’s Market Strategy and Growth

Endeavour Group, a major player in the liquor retail and hospitality industry, reported strong hotel sales growth, which included whiskey-driven premium experiences. Despite retail sales falling slightly, the company is positioning itself for long-term expansion, with strategic investments in technology and customer engagement.

Final Thoughts

February brought a mix of challenges and transitions in the whiskey industry, from financial pressures and legal disputes to shifting leadership strategies among major players. While uncertainties remain—especially around tariffs and economic headwinds—there are also signs of resilience. Global brands are adapting their approaches, and the craft sector continues to evolve in response to changing market dynamics.

As the year unfolds, innovation, strategic pivots, and consumer interest in premium spirits could help shape a stronger industry landscape. Stay tuned for next month’s insights as we continue to track the latest developments in the world of whiskey and bourbon.