MGP's Annual Sales Rise 7%, With Branded Portfolio Passing $250 Million

Amid increased competition in its core contract distilling business, MGP Ingredients still saw its total sales increase 7% to $837 million during its fiscal 2023, with adjusted EBITDA rising 20% to $305 million. The company’s branded side and its contract production business both showed strong advances.

Starting in 2016, MGP began a strategic rethink that included a customized approach to its contract distilling business, and, importantly, the establishment of a division to build, acquire, and create its own branded products. Those have included George Remus bourbon, Eight & Sand blended bourbon, and Rossville Union rye. Last year MGP added to that group with the acquisition of Penelope Bourbon.

But the branded portfolio also includes the brands acquired when MGP bought Luxco back in 2021, adding such as Ezra Brooks, Rebel, Blood Oath, David Nicholson, Daviess County, and Yellowstone Kentucky Straight Bourbon Whiskey, as well as El Mayor, Exotico, Dos Primos tequilas, and others.

In this recently completed fiscal year, the company’s contract distilling and its branded spirits divisions both posted healthy advances. Sales for the contract business were up 5% to $450.9 million, thanks to a 14% increase in premium spirits sales, including new distillate and aged American whiskeys. MGP’s branded portfolio grew by 7% to $253.9 million, which the company attributed to 24% growth of the portfolio’s higher-end brands. Having put the pieces in place to reach annual sales surpassing a quarter of a billion dollars, MGP appears well-positioned to build on that foundation.