Key whiskey and wine industry brand files Chapter 11 bankruptcy

The liquor and wine brand has filed for Chapter 11 bankruptcy protection.
That moves comes after its bank filed an involuntary Chapter 7 bankruptcy for the company.
Courts will have to decide which process will be followed.

While the worst of the Covid slowdown has been felt by the craft brewery business, it has also hit liquor and wine brands. The closures have not been as pervasive, but a number of brands have experienced slowdowns and drops in sales.

“While the spirits industry has proven to be resilient during tough times, it is certainly not immune to disruptive economic forces and marketplace challenges, and that was definitely the case in 2024,”Distilled Spirits Council CEO Chris Swonger said in his group’s annual economic report.

Sales in the United States were down -1.1% in 2024, totaling $37.2 billion.
Volumes rose 1.1% to 312.2 million 9-liter cases.
For the third year in a row, the spirits sector maintained its market share lead in 2024. Spirits market share totaled 42.2%, with gains for more than two decades.
The spirits sector has gained more than 13 points of market share since 2000. Each point represents $880 million in supplier revenue.

Those numbers are mixed, which Swonger explained.

“Consumers were contending with some of the highest prices and interest rates in decades, which put a strain on their wallets and forced many to reduce spending on little luxuries like distilled spirits,” he said. “Our sales dipped slightly but consumers continued to choose spirits and enjoy a cocktail with family and friends.”

Gallup.com has also showed that some generations are drinking less (while others are drinking more).

62% of adults under age 35 say they drink, down from 72% two decades ago.
Conversely, drinking has increased among adults aged 55 and older.
Young adults are also drinking less frequently and are less likely to drink to excess.

Slowing sales contributed to a handful of Chapter 11 bankruptcy filings in the liquor and wine spaces. Now, another company that’s a key part of those industries has filed for Chapter 11 bankruptcy protection.

Staggemeyer Stave may not be a brand liquor and wine drinkers know, but the company plays an essential role in those industries.

The company describes its business in a very simple way on its website.

Producing premium white oak barrel staves for the wine and whiskey industry for over 50 years.

A family-owned company, Staggemeyer Stave has a deep history.

“Staggemeyer Stave has its roots in Missouri, where H.E. Robertson began his venture and eventually operated a stave mill in Dubuque, Iowa. In 1958, he moved the mill to our present site near Caledonia, Minnesota, because of the abundance of white oak. Robertson’s original plan was to operate temporarily and leave when the oak ran out, but he underestimated the great wealth of premium white oak in the region. Fifty-plus years later, we’re still here in the midst of the oaks,” the company added.