Green River Distilling Co. is adjusting to shifting conditions in the bourbon and spirits industry while continuing to grow its brand and maintain its presence in Owensboro, according to company leadership.
Lofted Spirits, which owns Green River and Bardstown Bourbon Company, recently scaled back certain production activities in response to changing market dynamics.
“Like much of the American whiskey industry, we are scaling back certain production activities to meet current demand for contract whiskey,” said Holly Weyler, public relations director for Lofted Spirits.
While the move included a reduction in some production roles, company officials emphasized the broader health of the brand and its ongoing operations.
“The Green River brand is healthy and growing, and the distillery remains operational and open to the public,” Weyler said.
Weyler said the brand has continued to gain traction despite broader industry challenges.
“The brand is healthy and growing — continuing to steal market share within its price tier — and has a number of exciting innovations yet to come this year,” she said. “Last year, the brand grew more than 28%, while total whiskey was down about 2%.”
“We continue to distill and remain open to the public for tours and events,” she added.
According to Lofted Spirits CEO Mark Erwin, the company is navigating a markedly different landscape than in recent years, as supply has outpaced demand across the industry.
“The supply and demand dynamics have totally flipped from where they were a few years ago,” Erwin said. “That oversupply has put a lot of pressure on brands and distilleries of all sizes.”
Erwin said the imbalance has created additional challenges, particularly in financing and contract production.
“That imbalance has also made brand and barrel financing much more difficult. This has disrupted our contract whiskey business and many of our partner brands,” he said.
He added that broader economic and cultural factors are also influencing consumption trends.
“We do have some softness on the consumption side due to economic pressures, GLP-1s, legalized cannabis, and tariffs,” Erwin said. “Taken together, these have all added up to headwinds for the industry. We have seen distilleries and brands fade away as a result.”
Despite those challenges, Erwin said there are reasons for optimism, noting bourbon’s resilience and long-term appeal.
“There are a number of reasons to be optimistic,” Erwin said. “For one, bourbon is America’s only native spirit and has weathered far worse storms in the past … (such as) prohibition.”
He pointed to continued innovation and improving quality across the industry as encouraging signs.
“In the end, the consumer will win as whiskey stocks age and higher quality whiskey will be available at more approachable prices in the years ahead,” Erwin said. “That will ultimately be great for our category as it should bring more drinkers into American whiskey.”
To position itself for long-term success, Green River has focused on refining its marketing and expanding its product lineup.
“We have gotten sharper in our marketing efforts and more creative in our offerings; our Wheated Full Proof and our new Green River Honey (launching later this spring) are the two latest examples,” Erwin said.
The company has also expanded its footprint beyond Owensboro to reach new audiences.
“We opened a Tasting Room on Main Street in downtown Louisville to expose more tourists and whiskey fans to the pride of Owensboro,” Erwin said.
Even with that growth, company leaders emphasized that Owensboro remains central to Green River’s identity and future.
“Owensboro is and always will be the home of Green River whiskey,” Erwin said. “We take great pride in being from Owensboro, and that will never wane.”
He added that the Owensboro operation continues to play a key role in both production and partnerships.
“We also have a number of customers who value the whiskey we make in Owensboro, and our Lofted Custom Spirits team does a great job of selling Green River to hundreds of our customers,” Erwin said.
Local leaders say the distillery remains an important economic driver for the region.
“While the bourbon sector faces near-term headwind, Green River Distilling Co. remains a critical asset to our local economy by supporting jobs, driving tourism, and positioning Owensboro for long-term growth when the market rebounds,” said Claude Bacon, president and CEO of the Greater Owensboro Economic Development Corporation. “We are proud to call them a partner in our community.”
Erwin said the company’s long-term commitment to Owensboro remains unchanged.
“The whiskey made at Green River is known for its quality, winning national and even international awards,” he said. “We take great pride in that, and we won’t stop investing in the Green River brand and its association with Owensboro.”
