MGP Ingredients, Inc. (Nasdaq: MGPI), a
leading provider of distilled spirits, branded spirits, and food
ingredient solutions, today announced the planned closure of its
distillery in Atchison, Kansas, with the anticipated closure date
estimated to be January 2024. The distillery is responsible for
producing grain neutral spirits and industrial alcohol products as
well as their related co-products.
The decision to close this distillery is
consistent with the Company’s plan to address profitability
headwinds associated with its grain neutral spirits and industrial
alcohol products within its Distilling Solutions segment. The
Company will continue to operate and invest in its Ingredient
Solutions business located in Atchison, Kansas, including the
previously announced $16.7 million-dollar texturized protein
facility that is scheduled to be completed by the end of the year.
The Company will also continue to operate and invest in its
Lawrenceburg, Indiana distillery operations.
“After careful deliberation, we have concluded
that the closure of our Atchison distillery is a necessary step to
further align the product categories we participate in and their
supporting operations, consistent with our long-term strategic
objectives,” said David Colo, President and CEO of MGP Ingredients,
Inc. “The additional supply of grain neutral spirits and industrial
alcohol that has entered the market during the past few years has
had a meaningful and structural impact on the market. Combining
these market factors with the increase in local corn basis costs
during this same time frame has resulted in these product lines no
longer being economically viable for the Company. The decision to
close the Atchison distillery unfortunately represents the best
path forward. We are grateful for the unwavering support and
contributions of our distillery employees, customers, suppliers,
and the people of Atchison. We are committed to ensuring a smooth
transition as we wind down operations at the distillery between now
and the end of the year, and we look forward to continuing to
support the Atchison community.”
Please refer to the Form 8-K filed by the
Company today for further information. In addition, management will
be discussing the planned Atchison distillery closure when the
Company releases its financial results during the rest of the year,
as more information becomes available.
About MGP Ingredients, Inc.MGP
Ingredients, Inc. (Nasdaq: MGPI) is a leading producer of premium
distilled spirits, branded spirits, and food ingredient solutions.
Since 1941, we have combined our expertise and energy aimed at
formulating excellence, bringing product ideas to life
collaboratively with our customers.
As one of the largest distillers in the U.S.,
MGP’s offerings include bourbon and rye whiskeys, gins, and vodkas,
which are created at the intersection of science and imagination,
for customers of all sizes, from crafts to multinational brands.
With distilleries in Kentucky, Indiana, and Kansas, and bottling
operations in Missouri, Ohio, and Northern Ireland, MGP has the
infrastructure and expertise to create on any scale.
MGP’s branded spirits portfolio covers a wide
spectrum of brands in every segment, including iconic brands from
Luxco, which was founded in 1958 by the Lux family. Luxco is a
leading producer, supplier, importer and bottler of beverage
alcohol products. Our branded spirits mission is to meet the needs
and exceed the expectations of consumers, associates and business
partners. Luxco’s award-winning spirits portfolio includes
well-known brands from four distilleries: Bardstown, Kentucky-based
Lux Row Distillers, home of Ezra Brooks, Rebel, Blood Oath, David
Nicholson and Daviess County; Lebanon, Kentucky-based Limestone
Branch Distillery, maker of Yellowstone Kentucky Straight Bourbon
Whiskey, Minor Case Straight Rye Whiskey and Bowling & Burch
Gin; Jalisco, Mexico-based Destiladora González Lux, producer of
100% agave tequilas, El Mayor, Exotico and Dos Primos; and the
historic Ross & Squibb Distillery in Lawrenceburg, Indiana,
where Penelope Bourbon, Remus Straight Bourbon Whiskey and
Rossville Union Straight Rye Whiskey are produced. The innovative
and high-quality brand portfolio also includes Everclear Grain
Alcohol, Pearl Vodka, Green Hat Gin, Saint Brendan’s Irish Cream,
The Quiet Man Irish Whiskey and other well-recognized brands.
In addition, our Ingredient Solutions segment
offers specialty proteins and starches that help customers harness
the power of plants and provide a host of functional, nutritional,
and sensory benefits for a wide range of food products.
The transformation of American grain into
something more is in the soul of our people, products, and history.
We’re devoted to unlocking the creative potential of this
extraordinary resource. For more information, visit
mgpingredients.com.
Cautionary Note Regarding
Forward-Looking StatementsThis press release may contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including without
limitation, statements about the impact and timing of the planned
closure by MGP Ingredients, Inc. (the "Company" or "MGP") of its
Atchison distillery and the Company’s operations and investment in
its Ingredients Solutions business and Lawrenceburg, Indiana
distillery. Forward looking statements are usually identified by or
are associated with words such as “intend,” “plan,” “believe,”
“estimate,” “expect,” “anticipate,” "project," "forecast,"
“hopeful,” “should,” “may,” “will,” “could,” “encouraged,”
“opportunities,” “potential” and similar terminology. These
forward-looking statements reflect management’s current beliefs and
estimates of future economic circumstances, industry conditions,
Company performance, and Company financial results and financial
condition and are not guarantees of future performance. All
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ
materially.
For information on risks and uncertainties that
may affect the Company’s business, see the “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” sections of the Company’s Annual Report on
Form 10-K for the year ended Dec. 31, 2022 and its Quarterly
Reports on Form 10-Q for the quarters ended March 31 and June 30,
2023, filed or to be filed with the SEC, as well as the Company’s
other SEC filings. The Company undertakes no obligation to update
any forward-looking statements made in this press release to
reflect future events or developments, except as required by law.
Because it is not possible to predict or identify all such factors,
this list cannot be considered a complete set of all potential
risks or uncertainties.
For More InformationInvestors
& Analysts:Mike Houston646-475-2998 or
investor.relations@mgpingredients.com
Media:Greg Manis913-360-5440 or
greg.manis@mgpingredients.com
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