Great Jones Distilling Co., Manhattan’s only whiskey distillery, closed unexpectedly this month as U.S. alcohol consumption reaches record lows. The distillery, which opened in 2021 after overcoming regulatory challenges, operated a 28,000 square-foot facility at 686 Broadway that included a restaurant, retail store, speakeasy, tasting rooms, and tours, according to its website.
The distillery's website announced, "After 5 incredible years, Great Jones Distilling Co. Visitor Center is closed until further notice." Great Jones is owned by Proximo Spirits, based in Jersey City, NJ, which produces Jose Cuervo. Neither Great Jones nor Proximo responded to requests for comment.
A Proximo spokesperson stated, "The decision [to close Great Jones] followed a thorough review of the current beverage industry trends, market conditions, and overall company business strategy," as reported by The Spirits Business, a trade publication.
Despite the closure, Great Jones will continue to sell its whiskey online and at retail locations, although the $21 million investment in developing the distillery appears to have been largely unproductive, according to Engineering News Record.
The closure coincides with a series of negative developments in the alcohol industry, including a Gallup poll from August indicating that Americans are consuming alcohol at the lowest levels since 1939. In the same month, Republic National Distributing Company, the second-largest distributor of wine and spirits, filed for Chapter 11 bankruptcy, with Proximo identified as its largest creditor, owed $94 million according to court documents.
Michael Correra, executive director of the Metro Package Store Association, noted, "The alcohol industry is going through a major reset. The business is imploding and I think you’ll see liquor stores close as well because fewer people are drinking."
Additionally, last year, Brown-Forman, the parent company of Jack Daniel’s, laid off 12% of its workforce, or 650 employees, due to weak demand for its whiskey brands, which include Woodford Reserve and Old Forester. The company, along with several Kentucky bourbon producers, has faced challenges from declining sales attributed to trade disputes and changing drinking habits among younger consumers.