Diageo to shut Stitzel-Weller bottling operations, cut 33 jobs in U.S.
USA – Global spirits giant Diageo has announced plans to shut down the bottling operations at its Stitzel-Weller Distillery in Louisville, Kentucky, by April 2025.
The decision is part of the company’s ongoing efforts to streamline operations and maintain supply chain resilience.
The closure will result in the loss of 33 jobs in Louisville, with bottling operations shifting to Diageo’s other U.S. facilities.
Despite the closure, Diageo will continue distilling bourbon at the Shively facility, home to brands such as Blade and Bow, I.W. Harper, and Orphan Barrel.
Additionally, the site’s visitor experience, including its renowned Garden & Gun Club, cocktail classes, and guided tastings, will remain open.
A Diageo spokesperson emphasized that the restructuring is unrelated to the European Union’s impending 50 percent tariff on American whiskey, set to take effect on March 31.
“We do not take these decisions lightly, and we recognize the impact on our employees. For those affected, we are providing severance packages, outplacement assistance, and access to open roles across our organization,” the spokesperson said.
As part of the transition, Diageo plans to relocate its maturing and warehousing operations to other Kentucky sites.
The Stitzel-Weller maturing and barrel operations will remain active until the existing bourbon stock is depleted.
Diageo’s other major bourbon brand, Bulleit, will continue to be distilled at the company’s facilities in Shelbyville and Lebanon.
“Through these sites in the heart of bourbon country, homes to Bulleit bourbon, we will continue to invest in Kentucky’s economy while contributing to the local tourism and hospitality sectors,” the company stated.
Since 2019, Diageo has invested nearly US$290 million in Kentucky and supports more than 1,600 jobs in the state. The company also spends approximately US$76 million annually on wooden barrels, corn, and rye sourced from Kentucky suppliers.
The closure announcement follows Diageo’s recent decision to abandon its annual sales growth target of 5-7 percent, citing market uncertainties, including potential U.S. tariffs and weakening demand in key markets.
Diageo’s Chief Financial Officer, Nik Jhangiani, estimated that if the proposed tariffs take effect in March, the company could face a US$200 million hit to operating profit for the fiscal year ending June 2025.
In its latest half-year financial report, Diageo recorded a 0.6 percent decline in net sales to US$10.9 billion, while net profit dropped 1.2 percent to US$2.8 billion.
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