Midwest Barrel Company reposted this
Today, Brown-Forman announced the layoff of approximately 200 employees and the closure of its legacy cooperage in Louisville, KY. This is a significant shift for the industry and a deeply impactful decision for the local community. Our thoughts are with the employees and families affected, and we hope to see opportunities emerge for those displaced by this closure. The barrel and spirits industries are evolving rapidly. When Louisville Business First reached out to Midwest Barrel Company my thoughts on this announcement, here’s what I shared: On the cooperage industry: “This closure reflects a broader trend of adjusting to slowing global spirits consumption, evolving consumer preferences, and economic pressures such as potential tariffs. Brown-Forman has been a key player in barrel production, and their decision to outsource signals a significant change in supply chain strategies. Upstream, this may reduce demand for raw materials like staves and wood, potentially impacting stave mills and loggers. Downstream, cooperages and other barrel suppliers will likely experience increased demand as they fill the gap left by Brown-Forman’s exit from direct production.” On the barrel market: “As one of the largest producers of whiskey barrels, Brown-Forman has historically supplied a significant volume of once-used barrels to the global market. If their production slows or they release fewer barrels, the supply of freshly emptied barrels will tighten. This could lead to increased competition among distilleries seeking barrels for secondary aging, potentially driving up prices and creating challenges for smaller producers. While this presents opportunities for third-party cooperages, it also demands that they scale efficiently while maintaining the quality and consistency distilleries rely on.” On the bigger picture: “The closure of Brown-Forman’s Louisville cooperage is not an isolated event. It’s part of a larger strategy that’s been unfolding over the past year, with divestitures and a shift toward external sourcing. For the industry, this moment underscores the importance of adaptability and collaboration. At Midwest Barrel Co., we remain committed to supporting distilleries through these changes, ensuring they have reliable access to high-quality barrels as market dynamics evolve.” Change isn’t always easy, but it often drives innovation and resilience. This moment is a reminder of how interconnected we all are in this industry and the opportunities that can arise when we work together to navigate the challenges ahead. To read the full article see here: https://lnkd.in/eUYsr5KV