August 29, 2025: The industry turns to private credit and other news
US distilleries eyeing private credit, Brown-Forman and Pernod Ricard's reports, US alcohol banned in Ontario, Sazerac in India, baijiu firms invest in low-alcohol, Korean whisky and more...
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Happy Friday everyone!
Today's news is filled with financial reports and company updates, including some unfortunate facility closures and job cuts. I'll end with an interesting interview about Korean whisky.
Financial news
US wineries and distilleries are looking for private credit
As tariffs and a decline in drinking habits increase risk for the alcohol industry, banks are gradually shifting away from financing. Wineries, whiskey distilleries, alcohol distributors, and other related businesses appear to be turning to private credit to fill this gap.
Ellen Schneider and Olivia Fishlow report on this situation in US in their article for Bloomberg (subscription required):
Wineries and Whiskey Makers Tap Private Credit for Financing
I found a summary of the article Isabella Farr in Bloomberg’s newsletter “Going Private” at the following link:
Private Credit Wants to Lend to Wineries and Whiskey Distilleries
Brown-Forman reports Q1 fiscal 2026 results
Brown‑Forman has issued its report on financial results for the first quarter of fiscal 2026. The company reported net sales decreasing 3% to $924 million (with a +1% increase on an organic basis) compared to the same period last year.
According to an article by Nicola Carruthers on The Spirits Business, sales in Canada plunged by 59%, significantly influencing the overall performance.
You can read the article here:
The Lexington Herald also reports the news, with some more details about the Canadian market and the opinion of Lawson Whiting, Brown-Forman president and CEO.
Article by Janet Patton:
Jack Daniel’s parent Brown-Forman: Whiskey sales to Canada down 60% due to boycott
I recommend you also have a look at the official report on the company’s website:
Pernod Ricard reports 3% drop in sales in fiscal 2025
The France-based global firm Pernod Ricard registered a 3% drop in organic net sales in fiscal 2025, due to unstable trade conditions with the US and China.
While sales of Scotch and Martell have declined, Irish Distillers reported a 2% global net sales increase, particularly thanks to the rise in Jameson Irish whiskey's global net sales (+3%) and good performances across Asia and Latin America.
The official press release does not seem to have appeared on the group’s website. You can read the news by Oli Dodd on Drinks International:
Pernod Ricard sees drop in sales driven by declines in US and China
and on RTE (no author mentioned):
US alcohol is still banned in Ontario
Ontario will continue to ban US alcohol from its shelves until tariffs are removed or a new deal is agreed upon.
News by Fiona Holland on Just-Drinks:
Ontario to keep US alcohol ban until tariffs are removed or new deal agreed
Company news
DIAGEO to close Crown Royal bottling facility in Canada
Diageo announced that its Crown Royal bottling plant in Amherstburg, Ontario, will be shut down by February 2026. The facility is the city’s largest employer and will make 160 workers redundant.
Sanjay Maru reports for CTV News:
Diageo to close down Amherstburg’s largest employer, as union vows ‘to keep that plant alive’
Sazerac targets Indian consumers
US-based group Sazerac is focusing on the Indian market after the country cut the import duty on bourbon to 100% from 150% earlier this year.
Gaurav Laghate spoke to Diego Bianchi, general manager of Emerging Markets and Barrel Select at Sazerac. You can read his article on the Indian publication Mint:
Sazerac banks on India's affluent consumers to drive bourbon whiskey sales
ISC to cut jobs at Kentucky cooperage
The Independent Stave Company-owned Kentucky Cooperage has announced a significant employment reduction at its Lebanon manufacturing facility. One hundred twelve jobs are at risk.
Article by Lauren Bowes on The Spirits Business:
Big baijiu firms are launching low-alcohol products
Some leading Chinese baijiu producers, such as Wuliangye Group, Gujinggong Liquor, and Yanghe Brewery, are launching lower-alcohol versions of their products to attract young Chinese consumers. The new liquids are between 26% and 33.8% ABV, so not exactly in the low-alcohol category, but this move reflects the change in consumer behavior that is also happening in China.
Article by Luan Li on the Chinese publication Yicai Global:
China’s Liquor Giants Launch Lower-Alcohol Baijiu to Entice Young Consumers
Something to read
Can K-whisky gain a role on the international scene?
The Korean publication Korea JoongAng Daily has published an interview by Woo Ji-Won with Gimpo-based distiller Kim Chang-soo. As one of the leading names in the Korean single malt scene, Kim provides his point of view on this topic.
You can read the interview here:
Can distiller Kim Chang-soo's labor of love give Korea the top-shelf whiskey it deserves?
That’s all for today. We can call it a week ;)
Thanks for reading this blog, see you on Monday!