Global whisky slump forces Tasmanian distilleries to cut output and staff

A sharp fall in worldwide whisky consumption is hitting producers across continents, with Jim Beam pausing its Kentucky plant and Scotland’s Holyrood announcing an indefinite halt. In Tasmania, the downturn has forced McHenry Distillery founder William McHenry to dismiss both brewers and a distiller, reducing operations to a few batches a month and raising concerns about future export capacity. He attributes the slowdown to an influx of new distilleries, high inflation and an excise duty of $110 per litre that, despite a $400,000 rebate, erodes profit margins and caps pricing.

The sector also grapples with recent scandals, including the resignation of former Lark chief Geoff Bainbridge and the 2017 collapse of Nant, which left investors unpaid. Nevertheless, newer players such as Waubs Harbour and established names like Sullivans Cove continue to increase output, targeting a larger slice of global whisky sales. Industry leaders are calling for a overhaul of the excise remission scheme to sustain growth and prevent smaller producers from being forced out.