Manhattan’s only whiskey distillery closed unexpectedly this month as US alcohol consumption hits record lows.
Great Jones Distilling Co. — which cleared bureaucratic hurdles in 2021 to open the first whiskey distillery on the island since Prohibition — has operated a 28,000 square-foot space at 686 Broadway that included a restaurant, retail store, speakeasy, tasting rooms and tours, according to its website.
“After 5 incredible years, Great Jones Distilling Co. Visitor Center is closed until further notice,” the website states.
Great Jones is owned by Proximo Spirits, the Jersey City, NJ-based maker of Jose Cuervo. Neither Great Jones nor Proximo responded to requests for comment.
“The decision [to close Great Jones] followed a thorough review of the current beverage industry trends, market conditions, and overall company business strategy,” a Proximo spokesperson told The Spirits Business, a trade publication.
Great Jones will continue to sell its whiskey online and at retail stores, even as its $21 million investment in building out the distillery appears to have gone down the drain, according to Engineering News Record.
The closure follows a slew of negative headlines for the alcohol industry, including a new Gallup poll in August showing that Americans are imbibing at the lowest level since 1939.
Also in August, the second largest distributor of wine and spirits, Republic National Distributing Company of Grand Prairie, Texas, filed for Chapter 11
Its largest creditor was Proximo – which is owned by Mexico’s largest spirits producer, Becle, which was owed $94 million, according to court filings.
The alcohol “industry is going through a major reset,” said Michael Correra, executive director of the Metro Package Store Association, a trade group representing wine and liquor stores in the New York Metro area.
“The business is imploding and I think you’ll see liquor stores close as well because fewer people are drinking.”
Last year, Jack Daniel’s parent Brown-Forman laid off 12% of its workforce, or 650 employees, because of weak demand for its whiskies, which also include Woodford Reserve and Old Forester. Brown-Forman is among several Kentucky bourbon makers who have been hit hard by declining sales because of trade disputes and the fact that Gen Zers are not drinking.