The spirits distilling industry has not been immune to financial challenges. While one might expect the spirits industry to remain resilient, in the last decade, sales have declined, and bankruptcy filings have increased within the industry. Amid these challenges, J.J. Pfister Distilling Co. closed last year and has now filed for bankruptcy. Many other distilleries also filed for bankruptcy to clear their debts.
Highlights
- Last year, the country experienced a 1.1% decline in spirits sales, leading to more bankruptcy filings.
- J.J. Pfister closed in November 2024 and filed for bankruptcy after 6 months.
- Financial challenges made other distilleries file for different chapters of bankruptcy protection.
JJ Pfister Distilling: A Case of Rapid Decline
J.J. Pfister Distilling Co. has been located in Sacramento since its opening in 2018. Spirits like vodka, gin, drakas, rum, whiskey, and brandy were manufactured by the company to be distributed in Arizona, California, and Nevada.
Total Wine, BevMo, Young’s Market, and other retailers were associated with J.J. Pfister to sell their spirits. All of these brands experienced a setback when the company closed in November 2024. Economic challenges compelled the company to shut its operations. Now, the company has filed for Chapter 11 bankruptcy protection to market its assets and clear debts.
In the bankruptcy filing, the company has registered a debt of $1.6 million. Out of this, the company owes debt to creditors like Fite Bypass Trust, Bank of America, Overton Funding, and other tax authorities. The company has listed assets of $50,000 in the U.S. Bankruptcy Court for the Eastern District of California.
More Distilleries That Had to Take Bankruptcy Protection
Financial issues and bankruptcy are not only for J.J. Pfister. In one year, many other distilleries faced the same situation. Vodka giant Stoli Group had to file for bankruptcy in November 2024. This year, in March, Boston Harbor Distillery also filed for Chapter 11 bankruptcy protection.
House Spirits Distillery LLC also filed for Subchapter V bankruptcy when it experienced a constrained liquor market right after expanding its business operations. The filing was made on April 6, 2025, in the U.S. Bankruptcy Court for the District of Delaware. The most recent case is of Devils River Distillery LLC, which filed for Chapter 11 bankruptcy on May 1, 2025. The San Antonio-based company used to distribute its products to 36 states and five countries.
Market outlook and the economic landscape for distilleries have not been good in recent years. In 2024, a 1.1% decline in sales was observed in the spirits market. This decline led to financial challenges for distilling companies, prompting some to file for bankruptcy.
