MGP Q2 sales drop 24%
US-based MGP Ingredients saw second-quarter (Q2) sales plunge by double digits as demand for its whiskey declined.
For the three months ending 30 June 2025, the third-party spirits producer reported a 24% sales decrease to US$145.5 million and a profit loss of 30% to US$58.4m.
The sales drop was mainly attributed to ‘expected declines in brown goods’ within the company’s Distilling Solutions division and a decline for value and mid-priced brands.
The Q2 results followed a sales slump of 29% in the first three months of this year. The company’s 2024 full-year sales fell by 16% to US$703m.
MGP’s Distilling Solutions business was hit the hardest during Q2. It plummeted by 46% to US$50m due to ‘elevated industry-wide barrel inventories’ and reduced consumer demand for brown goods.
The firm’s Branded Spirits arm fell by 5% to US$60.5m. This was driven by a nearly 15% decrease in the mid- and value-priced portfolio as the result of lower volumes of certain Tequila, liqueur and cordial brands.
The mid-priced brands recorded a 9% drop to US$15.5m while value brands plummeted by 23% to US$8.9m.
Kansas-headquartered MGP said its increased focus on the ‘most attractive growth opportunities’ in American whiskey and Tequila led to a growth of 1% to US$31.1m in premium-plus branded spirits sales.
The company noted that Penelope Bourbon, which sits in the premium-plus portfolio, experienced ‘another quarter of above-category sales growth’. El Mayor Tequila and Rebel Bourbon also contributed to the division’s growth.
For the 13 weeks ending 12 July 2025, Penelope soared by 64%, according to total premium-plus retail sales from Nielsen. Over the same period, El Mayor rose by 3% and Rebel 100 Bourbon grew by 7%.
In November last year, MGP announced it would scale back its whiskey production to focus on branded spirits after posting a 24% third-quarter net sales drop.
The Branded Spirits division includes Remus Bourbon, Rossville Union whiskey, Ezra Brooks Bourbon, Dos Primos Tequila, Green Hat Gin, and The Quiet Man Irish whiskey.
In recent years, MGP has acquired a number of brands, most notably Luxco for US$475m in 2021. MGP also added Penelope Bourbon to its portfolio in May 2023.
The only part of the business to increase was the Ingredients Solutions segment, which returned to growth with a 5% gain to US$35m.
‘Largely as expected’ Q2
MGP chief financial officer Brandon Gall said: “Our second-quarter results came in largely as expected, as we delivered solid execution and sequential improvement across all three business segments.
“Our decisive actions to improve visibility with our customers are working as second-quarter brown goods volume and price declines were in line with our expectations.
“Our teams remain tightly focused on key initiatives and continue to execute on our strategic priorities, which I expect will position us well for the second half and give us the confidence to reaffirm our 2025 outlook.”
Earlier this month, former Constellation Brands executive Julie Francis joined MGP Ingredients as CEO and president to drive the group’s branded spirits strategy.
She replaced Gall in the CEO role after he stepped in on an interim basis, following the retirement of David Bratcher in January 2025.
Francis added: “Our goal continues to be delivering sustainable growth and unlocking meaningful, long-term value for all stakeholders. We will work together with clarity, integrity, and agility to strengthen our customer-centric, brand-led approach and execute with excellence across our platforms.”
MGP restated its fiscal 2025 guidance (initially announced in May) with sales projected to be in the range of US$520m to US$540m.
In July 2023, MGP closed its distillery in Atchison, Kansas, due to headwinds facing its grain-neutral spirits.
Through its purchase of Luxco, MGP produces its branded spirits at five distilleries: two in Kentucky, one in Ireland, one in Mexico and one in Lawrenceburg, Indiana.
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