Three Big Whisky Distilleries Are About to Close

Friday, 26 September 2025 at 17:00

Diageo is temporarily halting production at three whisky makers: Teaninich, Balcones, and George Dickel. The reason isn't lack of demand, but rather because there is too much whisky. So what's going on?

FAQ

Why is Diageo stopping whisky production?
Due to slow sales and packed warehouses, the projected annual production has already been largely exceeded. The pause is required to balance the stocks.

How long is the break at Teaninich, Balcones and George Dickel?
The distillation and filling activities are suspended until June 2026.
Is this unusual for the whisky industry?
Not really, although this pause is quite lengthy.

Diageo Pauses Whisky Production at Three Distilleries

After the coronavirus pandemic, whisky demand has been slowly falling. While distilleries ramped up production during the pandemic to quench the global thirst for whisky, some brands are now dealing with overloaded warehouses.

Therefore, Diageo is announcing temporary production halts at Balcones (Texas), George Dickel/Cascade Hollow (Tennessee), and Teaninich (Scotland).

This decision follows in the footsteps of other industry giants: LVMH has previously temporarily halted operations at Glenmorangie. While the pandemic led to record productions and optimistic forecasts, a period of recalibration now follows.

Noticeably Extended Production Halt

It's not uncommon for distilleries to periodically halt production, often for maintenance or equipment replacement.

A spokesperson for Diageo North America emphasizes that this isn't unusual:

'Every year, we carry out standard temporary slowdowns or closures to support our efficiency and productivity goals. As we're ahead of schedule, we're now temporarily pausing until June 2026.'

The halts that Diageo has put in place at the three distilleries are, however, remarkably long. The doors will be closed until June 2026, amounting to almost a year of closure.

What Happens to the Staff and the Distilleries?

The halt results in some staff becoming redundant, though that's not the case everywhere. A total of 17 people are being let go at Balcones. At Cascade Hollow, positions are being restructured, but everyone remains employed. The same is true for Teaninich.

The visitor centers of all the distilleries will remain open, so tourists and whisky fans won't miss out on anything.