Today is America’s Independence Day, and while Americans celebrate with barbecues and fireworks, we can take this opportunity to consider the rise of independent craft distilleries across the United States, and how they are changing the profile of American whiskey. The last two decades have seen an explosion in the numbers of small, independent craft distilleries, growing from around 50 in 2005, to more than 2,700 last year, according to industry reports. In 2022, the US craft spirits category sold more than 14 million 9L cases, achieving $7.
9 billion in domestic sales, with an annual growth rate of 5.3%. Exports that year reached 171,000 9L cases.
However, this rapid expansion has not been entirely without difficulties. After a peak during the pandemic, domestic demand has been falling, just as many producers have large quantities of whiskey matured and ready for sale. Add to this the problems in the broader economy, such as higher interest rates and inflation, which has increased costs throughout supply chains, and many producers are now facing a cash-flow crunch that some will not survive.
Meanwhile, some of the more successful craft producers have been acquired by major spirits corporations, or entered into partnerships to assist with marketing and distribution. These deals often involve the founders remaining in place, and operating their businesses with a great deal of autonomy, so that the independent ethos is maintained. Sometimes these distilleries can become an ex.
