MGP Ingredients, a provider of distilled spirits, branded spirits, and food ingredient solutions, has revealed 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 said to be 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.”