MGP Ingredients announced that it will pause production at two of its Kentucky Distillers: Lux Row Distillers and Limestone Branch.

Lux Row produces such brands as Blood Oath, Rebel and Ezra Brooks, while Limestone Branch is known primarily for its Yellowstone Bourbon and Minor Case brands. MSN.com reports that the pause is due to a surplus in inventory.

The production pause, which takes effect May 1, will affect 33 employees. Production is expected to resume when demand necessitates additional inventory. MGP expects the pause to remain in effect for at least a year.

Per an MGP press release, the company will continue distilling operations at its largest facility in Lawrenceburg, Indiana. 

“The American whiskey market continues to be structurally oversupplied, with excess capacity and elevated inventory,” Julie Francis, president and CEO of MGP Ingredients, said in the release. “Like many companies across the industry, we are navigating a challenging environment and taking steps to better align our operations with current inventory levels while supporting our efficiency and productivity goals. 

“As a result, we have made the difficult decision to temporarily idle distilling operations at these two facilities. This decision was not made lightly. We are grateful for the contributions of our teams, committed to supporting those impacted, and remain confident these distilleries will continue to play an important role in our business in the future.” 

The temporary pause is not expected to impact the availability of MGP’s products or services to clients and customers. 

Additionally, MGP said other operations, including warehousing, bottling and barrel programs, will continue at both of the distilleries. The visitor centers at both will also remain open and continue to offer their full complement of immersive experiences that includes tours, tastings, retail offerings, limited release bottles and on-site engagements.

Read more: MGP to Scale Back Whiskey Production in 2025