The alcohol industry in the United States has faced problems on several fronts. First, Americans simply don’t drink as much as they used to.
“The percentage of US adults who say they drink alcohol fell to 54 percent, the lowest by a percentage point in Gallup’s trend in nearly 90 years. This coincides with a growing belief among Americans that moderate drinking is bad for health, now a majority opinion for the first time,” Gallup reported.
Gallup has tracked Americans’ drinking behavior since 1939 and their views on the health implications of moderate drinking since 2001.
“From 1997 to 2023, at least 60% of Americans reported drinking alcohol. The figure dropped to 62% in 2023 and 58% in 2024, before reaching 54% today. Before the most recent survey, the rate was 60% less than 10 times, including 519% in the original survey and once as low as 5193%. Recorded in 1958,” the studies showed.
In addition, President Donald Trump’s tariffs have led to a significant drop in liquor exports to some countries.
“In 2024, after a banner year for US spirits exports, US spirits exports fell 9% year-over-year in the second quarter, driven by ongoing trade tensions,” according to a new report released by the Distilled Spirits Council of the United States (DISCUS).
DISCUS CEO Chris Swonger said U.S. spirits exports to Canada fell 85% to below $10 million in the second quarter of 2025. Sales of U.S. spirits to Canada also fell 68% in April 2025.
“US spirits exports saw notable declines in all key international markets. Exports to the EU – the US spirits industry’s largest market – fell 12% to $290.3 million, while exports to the UK fell 29% to $26.9 million and those to Japan fell 23% to $21.4 million,” according to the report.
These twin problems have led to several bankruptcies in the US spirits sector, and now AM Scott Distillery, which offers a collection that includes our vodka, two gins and three bourbons, has filed for Chapter 11 bankruptcy protection.
AM Scott Distillery has struggled in recent months as its founder has faced legal trouble.
“Troy businessman Anthony Michael Scott, owner of AM Scott Distillery and former owner of The Mayflower, is facing felony charges in Mercer County. Scott, 44, of Troy, was indicted on two counts after a Mercer County grand jury handed down its decision March 20 in Mercer County Common Pleas Court.
Scott has pleaded not guilty to the charges.
It’s unclear from court filings or company filings whether the legal issues involving the founder are related to the bankruptcy case.
Aside from its owner’s legal troubles, the AM Scott brand has built a devoted following during its relatively short existence.
“AM Scott Distillery planted its roots in Troy, Ohio in 2022. Its line of craft spirits currently includes vodka, whiskey and gin. AM Scott Distillery prides itself on being affordable, accessible and approachable – perfect for hobbyists and craft veterans alike,” the company shared on its website.
The company launched its first collection in 2023.
More bankruptcy:
“The full collection is out and we’re proud of the product,” AM Scott Distillery President Anthony Scott told the Dayton Daily News. “It was great to see so many familiar faces stop by and we also met many new customers. We are excited about the launch and our team is committed to continually developing new products.”
Now, the company has been forced into Chapter 11 bankruptcy.
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Company: AM Scott Distillery, LLC (doing business as Scotty’s Bottle Parlor) located in Dayton/Troy, Ohio.
Chapter 11 (reorganization).
Court: US Bankruptcy Court, Southern District of Ohio (Dayton).
Case number:3:25-bk-32562.
Date of submission:December 22, 2025.
Registration type:Voluntary petition: The company chose to seek protection.
Status: Listed as debtor in possessionmeaning that the business usually continues to operate during the restructuring. Source: Bankruptcy Observer
AM Scott Distillery was active as a producer of craft spirits in Ohio, selling vodka, gin, bourbon and operating related locations such as Scotty’s Bottle Parlor in Troy, the Dayton Daily News reported.
The distillery previously changed its focus away from non-core hospitality businesses into production and distribution, including stepping down from running The Mayflower entertainment venue, according to the Dayton Daily News.
No details of the company’s debt and assets or the company’s creditors have been released.
Related: Amazon’s rival discount retailer files for Chapter 11 bankruptcy
“The decline in bourbon and whiskey sales is part of a larger overall decline in spirits sales. After an expansion during the pandemic, total sales of all spirits fell in 2023 for the first time in 30 years. Much of that was changing habits among young drinkers and concerns about alcohol’s health effects,” according to Tasting Table.
A long list of brands, both large and small, have filed for bankruptcy.
Westward Whiskey (House Spirits Distillery LLC): Submitted Chapter 11 bankruptcy (April 2025) due to liquidity challenges; continued operations during the reorganization, according to PacerMonitor.
Boston Harbor Distillery: Distiller of craft spirits (whisky, rum, gin, etc.) requested Chapter 11 bankruptcy (March 31, 2025), The Street reported.
Devils River Distillery LLC: Texas whiskey distiller submitted Chapter 11seeking reorganization, according to The Street.
JJ Pfister Distilling Co.: The Sacramento-based spirits maker requested Chapter 11 after operations ended, he shared The Street.
Lee Spirits Co. Inc.: Colorado Distillery requested Chapter 11 and ceased operations (March 8, 2024), PacerMonitor reported.
Garrard County Distilling Company (Kentucky): Has ceased activity and entered bankruptcy proceedings with major debts due; workers laid off, Lexington reported HERE.
Stoli Group (USA) LLC and Kentucky Owl, LLC: American arm of the Stoli brand (vodka, bourbon, rum, tequila, gin, etc.) Chapter 11 bankruptcy (November 2024). Large portfolio and significant liabilities, Distillery Trail reported.
52 Eighty Distilling (Colorado): Filed for Chapter 7 bankruptcy, going out of business, according to The Spirits Business.
Related: Luxury footwear brand files for Chapter 11 bankruptcy as demand cools
This story was originally published by TheStreet on December 23, 2025, where it first appeared in the Retail section. Add TheStreet as a favorite source by clicking here.
