January 2025 Whiskey Industry Update

As we step into 2025, the whiskey industry continues to navigate shifting consumer preferences, economic pressures, and strategic moves by major players. At Brindiamo, we curate insights from several industry sources, including Mark Brown’s newsletter, to stay ahead of key developments and trends. January brought several key developments that will shape the months ahead. Here’s what we found most interesting.

Diageo’s Continued Shift Towards an Asset-Light Model

Diageo made headlines this month by selling its 80.4% stake in Guinness Ghana Breweries to Castel Group for $81 million. While not directly involving whiskey, this move is part of Diageo’s broader strategy to focus on high-margin, global spirits brands, including its whiskey portfolio. Analysts suggest that Diageo is moving towards a model akin to Coca-Cola’s concentrate business, aiming to maximize returns while expanding Guinness and other premium brands internationally. This approach could potentially impact how Diageo invests in its whiskey operations in the future.

LVMH’s Struggles in the Spirits Market & Potential Whiskey Opportunities

LVMH’s Moët Hennessy (MH) division reported an 8% decline in organic sales for Q4 2024, continuing a trend of weak performance in the luxury spirits segment. The slowdown has particularly affected Hennessy Cognac in the U.S., as changing consumer behavior and increased competition from whiskey brands have influenced sales. With Cognac’s struggles, whiskey producers may see an opportunity to capture a greater share of the premium spirits market, particularly in the high-end segment where consumer demand for rare and limited-edition bourbon remains strong.

Glenglassaugh Pauses Production Amid Industry Challenges

Brown-Forman, owner of Jack Daniel’s and other major whiskey brands, announced that it will mothball its Scotch whisky distillery, Glenglassaugh, indefinitely. This decision comes as part of broader cost-cutting measures, including a 12% reduction in the company’s global workforce. While Brown-Forman remains committed to its whiskey portfolio, this highlights ongoing pressures in the industry, particularly in the Scotch segment, which faces declining sales and increased competition from American whiskey. With Scotch facing headwinds, bourbon producers may find new opportunities to expand their market reach.

Read more on Brown-Forman’s whiskey outlook here

Tilray Expands into THC-Infused Beverages, Eyes Whiskey Consumers

Tilray Brands, known for its cannabis products, has entered the U.S. intoxicating hemp beverage market with several new THC-infused drink lines. While this is not whiskey-specific, it’s worth watching as younger consumers explore alternatives to traditional spirits. Additionally, we’re seeing increased interest from partners looking to explore whiskey-based RTDs, as this remains a fairly underserved RTD market. With the rise of non-alcoholic and THC-infused beverages, whiskey brands may need to double down on premiumization, storytelling, and experiential marketing to maintain their share of the market.

Banfi Vintners Enters the Whiskey Market

Banfi Vintners, historically focused on Italian wines, announced its entry into the whiskey space through a strategic partnership with Brother’s Bond Bourbon. This marks Banfi’s first foray into American whiskey, leveraging its extensive sales network to distribute and grow the Brother’s Bond brand. The move reflects the growing demand for craft and celebrity-backed bourbon, as well as the increasing crossover between wine and spirits consumers. This shift underscores the importance of strong distribution networks and brand positioning.

Key Takeaways & Looking Ahead

The whiskey industry is at an inflection point, facing economic headwinds, changing consumer habits, and regulatory uncertainties. However, opportunities remain strong for brands that can adapt through strategic innovation, premium positioning, and engaging marketing. As premium whiskey continues to outpace struggling spirit categories, the most successful brands aren’t just thinking about the next year or two—they’re planning for the next decade. Now is the time to refine your strategy and align with partners who have the scale, resources, and long-term vision to support sustained growth in an evolving market.

Whiskey Market Growth & Insights

Recent research from the team at spiritsresearch.com shows strong growth in whiskey brand launches, reinforcing our bullish outlook on the sector. Below is a graph showcasing the recent surge in whiskey brand introductions. This data underscores our confidence that despite challenges, brands that effectively position themselves will not only survive but thrive in this evolving market.

Brindiamo’s Role in the Evolving Whiskey Industry

Brindiamo is at the forefront of these trends, helping industry players navigate the evolving landscape. Whether you’re looking to expand distribution, refine your branding, or explore investment opportunities, our expertise can support your growth in the whiskey and bourbon market.

Contact us today to learn how Brindiamo can help. Stay tuned for more insights next month!