Popular whiskey and wine company files for Chapter 11 bankruptcy

Declining consumer demand for alcoholic beverages has impacted the wine and spirits industries, causing some businesses to reorganize, shut down operations and sometimes file for bankruptcy.

Wine industry metrics have flattened out in the last year after three decades of sustained growth, mainly driven by Baby Boomer consumers, according to Silicon Valley Bank’s State of the U.S. Wine Industry Report 2025.

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A reduction in wine consumption and a supply imbalance was influenced by a fundamental shift in consumer demographics along with resurgence of anti-alcohol campaigns, the report said. The reduction in demand was spurred by a decline in the “wine-friendly” Boomer population and a change in sentiment toward alcohol.

Related: Popular vodka and gin brand files for Chapter 11 bankruptcy

The alcoholic beverage market, the report said, is rotating out of over-60 aged consumers who index higher for wine purchases compared to other alcoholic beverage categories and stepping aside for consumers who index lower for wine.

The spirits industry has also dealt with economic issues in the last year. Spirits supplier sales in the U.S. declined 1.1% in 2024 to $37.2 billion, the Distilled Spirits Council of the United States reported in its Annual Economic Briefing in February 2025.

Spirits companies file for bankruptcy

Economic issues forced major global distillery affiliate Stoli USA to file for Chapter 11 bankruptcy on Nov. 27, 2024, after financial distress led to a default on $78 million in secured debt owed to Fifth Third Bank NA.

Craft spirits producer Boston Harbor Distillery, which makes whiskey, rum, gin, liqueurs, and distilled beer, on March 31, 2025, filed for Chapter 11 bankruptcy protection, seeking to reorganize its business.

Also, the maker of Westward Whiskey, House Spirits Distillery LLC, filed for Chapter 11 bankruptcy on April 6, suffering from financial distress after over-expanding just before the liquor market contracted.

Following House Spirits Distillery to bankruptcy court was Devils River Distillery LLC, which filed for Chapter 11 bankruptcy protection on May 1 to reorganize its business and continue operating.

The San Antonio-based distiller of Devil’s River Whiskey, which opened for business in 2017, makes five different bourbon whiskeys and a rye whiskey. The company distributes its liquor to 36 states, five countries, and cruise lines, offering premium and craft bourbons.

Oracles Craft Brands files for bankruptcy

Finally, fledgling spirits and wine provider Oracles Capital Inc., which operates as Oracles Craft Brands, filed for Chapter 11 facing financial distress.

Related: Popular whiskey brand files Chapter 11 bankruptcy

The Stuart, Fla.-based company, specializing in importing, distributing, and selling craft alcoholic beverage products, filed its Subchapter V petition on May 12 in the U.S. Bankruptcy Court for the District of Delaware.

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The debtor filed its petition seeking to sell its assets, as it faced macroeconomic conditions and wine import tariffs that prevented it from raising new capital, Law360 reported.

Oracles listed about $4 million in assets and over $342,000 in liabilities in its petition.

Oracles Craft Brands, which was established in 2020, specializes in importing, selling, and distributing a variety of Italian, Greek and Portuguese wine brands, including Primaterra, La Maialina, and Quattro Mani from Italy, Kaldera from Greece, and Verday canned white wine from Portugal.

It also sells and distributes ASM brand American single malt whiskey, which is made from 100% malted barley, pot distilled, aged for a minimum three years, and finished in sherry casks.

Related: Popular liquor brand files for Chapter 11 bankruptcy

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