Active craft distillers in the US fell by 787 in a year, while overall spirits sales dipped 2.2% in 2025 amid economic pressures.
The number of active U.S. craft distillers dropped from 3,069 in August 2024 to 2,282 in August 2025, a decline of 787 operations. The industry faces broader challenges as total spirits sales fell 2.2% in 2025, reflecting weakening consumer confidence and economic strain.
Despite the downturn, industry leaders highlight resilience, citing growth in ready-to-drink cocktails and innovative products. However, the closure of smaller players continues, with Blue Spirits Distilling filing for Chapter 7 bankruptcy on June 11, opting for liquidation over restructuring.
The filing underscores the financial pressures on distillers, as many others have pursued Chapter 11 to reorganize. The liquidation process for Blue Spirits remains uncertain, with court documents providing few details on asset distribution.