Stoli Group USA's Bankruptcy Leaves Kentucky Owl Plans Up in the Air

A bankruptcy filing by Stoli Group USA has created uncertainty for its Kentucky Owl whiskey brand and its planned Kentucky Owl Park distillery and visitor center in Bardstown, Kentucky. That project, announced soon after Stoli USA acquired Kentucky Owl in 2017, is envisioned as a 420-acre campus complete with a distillery, warehouses, bar, restaurant, hotel, and even a light railroad. But it has been plagued by delays from the start, most significantly from Covid-19, casting doubt on whether it will come to fruition. The bankruptcy filing complicates matters even further.

Kentucky Owl Park aside, the Kentucky Owl brand has released some excellent bourbon and rye whiskeys under Stoli’s ownership, most notably its Maighstir Edition in September 2023, Straight Batch 12 in November 2022, and The Wiseman in September 2021, which finished at No. 17 on our Top 20 list that year. All but one of Kentucky Owl’s whiskeys reviewed by Whisky Advocate since 2017 have scored above 90 points, the lone exception being its St. Patrick’s Edition, which scored an 89. Kentucky Owl rose to fame in 2014 when Kentucky entrepreneur Dixon Dedman revived the brand founded in 1879 by his grandfather, Charles Mortimer Dedman. The modern Kentucky Owl was an overnight sensation and became one of the most sought-after whiskeys on the market, leading to its 2017 acquisition by Stoli. Dedman has since launched his own blending company, under the 2XO name.

Stoli Group USA’s filing came on November 29 in a Texas district court, where it claimed assets of $100 million to $500 million and liabilities of $50 million to $100 million. The company, which says it’s experiencing financial difficulties amid headwinds in the drinks business as well as recently being hit by a major cyberattack, will continue to operate as it attempts to restructure.

The company’s flagship brand, Stoli vodka, is estimated at over 1 million cases in the U.S., but it has been on a steady downward path since Covid-19 ended, from 1.8 million cases in 2020. The portfolio also includes Elit vodka, and Cenote tequila. The group’s U.S. headquarters is in New York City. Stoli is owned by Russian-born billionaire Yuri Shefler, who was exiled from Russia two decades ago, with his SPI Group now based in Luxembourg. The Russian state continues to claim ownership of Stoli, challenging Shefler’s rights to the brand in various global markets. Earlier this year the Russian Federation declared Shefler and his company as “extremist groups working against Russian’s interests.”