MGP Ingredients Inc. (NASDAQ: MGPI) announced plans to temporarily halt distilling operations at two Kentucky facilities beginning May 1, 2026, citing the need to align production with current inventory levels.

The company will idle operations at Limestone Branch Distillery in Lebanon, Kentucky and Lux Row Distillers in Bardstown, Kentucky. The decision affects 33 employees across both facilities. MGP stated it is working directly with impacted employees to support them through the transition.

Distilling operations will continue at MGP's largest facility in Lawrenceburg, Indiana. The company expects to resume operations at the Kentucky facilities when inventory levels support additional production, potentially within 12 months of the idling date.

Other operations at the Kentucky facilities will continue, including warehousing, bottling and barrel programs. Both distillery visitor centers will remain open and continue offering tours, tastings, retail offerings and limited release bottles.

"The American whiskey market continues to be structurally oversupplied, with excess capacity and elevated inventory," said Julie Francis, president and CEO of MGP Ingredients. "Like many companies across the industry, we are navigating a challenging environment and taking steps to better align our operations with current inventory levels."

MGP stated the temporary idling is not expected to impact product or service availability to clients or customers. The company reaffirmed its consolidated 2026 sales, adjusted EBITDA, and adjusted basic earnings per share guidance announced in its February 25, 2026 earnings release.

The information is based on a company press release statement.