As we’ve reported on previously, the American industry is facing some tough times. Younger people are drinking less, major drinks companies are a decrease in revenue and employees, and the continued unpredictability of the Trump administration’s policy has created a sense of disarray. The latest victim of this challenging environment is craft distillery , which announced it was filing for Chapter 11 bankruptcy.
This comes after the that was pulling out of the accelerator program Distill Ventures, which invested in the Portland, Ore. distillery back in 2018 (, another distillery located in Denmark that was supported by Distill Ventures, laid off about a quarter of its employees after the announcement). We reached out to CEO Thomas Mooney for comment, and he confirmed that filing for Chapter 11 is related to Diageo’s departure from Distill Ventures, but he is in active conversation with other investors. “Over the past few years we built a company to compete and win in a very different market than the one we have today,” he told Robb Report. “If we had known that we would move forward as an independent distiller, in 2025 market conditions, we would have made different decisions over the past few years.”
Mooney went on to say that the craft distilling community is “withering,” and the legal and regulatory framework around alcohol makes it hard for a distillery of Westward’s size to reach consumers, along with much publicized issues like inflation and tariffs. “There are more closures than openings, overall volume and revenue are down, and nearly everyone is losing money,” he said. “There are exceptions, of course, but the typical craft distiller is too small to be financially sustainable, and unable to reach many of the consumers who want its products.”
Westward has been a leader in American since its founding more than two decades ago, making whiskey from a beer base that, along with other distilleries like , , and St. George, has led the way in the category. This news seems especially disappointing considering that the TTB finally gave American single malt its own legal last year, something that Westward and other distilleries had long advocated for. While interest in this category pales in comparison to bourbon and rye whiskey, distilleries were betting on its future—and still are—along with investment dedicated specifically to American single malt. “Whether it’s a boon, or nothing at all, depends on each of us,” said Mooney. “It’s up to us and our American single malt peers to generate consumer and trade excitement. If Westward generates excitement, and a few dozen of our peers do the same, then we will have a hot category. We’re counting on that.”
Ultimately, Mooney is looking at this new restructuring phase as a new opportunity, and maintains that this is not just spin on a bad situation. “[It] gives us a unique opportunity to revisit decisions that we made in a different time, with a different future in mind, and then reinvent ourselves to compete and win as an independent distillery in the world as it is today,” he said. “Plus, we are inherently stubborn people, and we have no intention of going away.” That remains to be seen, of course, but we will update you on the situation as it unfolds.
Authors
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Jonah Flicker
Credit: robbreport.com
