How the Government Shutdown Complicates Whisky's Route to Market

Whisky makers are facing some tough challenges these days: rising inventories, greater competition from other spirits types, and now potential regulatory disruptions as a result of the government shutdown that went into effect on October 1. While the store shelves remain stocked for whisky lovers, distillers face significant hurdles that could impact future releases.

The Alcohol and Tobacco Tax and Trade Bureau (TTB)—the federal agency that issues distilling permits, approves labels, and evaluates formulas—has furloughed 87% of its workforce during the shutdown. According to the agency's official shutdown plan, all permit processing, label approvals, and formula evaluations have completely ceased. Only 61 of the agency's 459 employees remain to handle tax remittances, protect federal property, and maintain criminal enforcement activities. Here’s a breakdown of how the shutdown impedes whisky (and other distilled spirits).

• Label Approvals

Under normal operating conditions, the TTB is often backlogged with label approval requests. Whether a distiller is creating a new product or updating an existing one, an application and label must be submitted for approval. This process can include an evaluation of the formula to make sure the label is accurate.

What the shutdown means: No new labels or formulas will be approved. Without label approvals, no new whiskies can be released. New releases may take significantly longer to hit shelves. This applies to American whiskeys and those imported from other countries.

• Permits

Distillers looking to start up or those who want to expand or change their operation are required to have a permit to do so.

What the shutdown means: No permit applications are being reviewed.

The ripple effects compound over time. A two-week shutdown might delay releases by weeks; a months-long shutdown could push new products into the following year.

The shutdown impacts distillers far more than consumers in the short term. Holiday releases awaiting label approval won't make it to shelves, and new expressions may be delayed until next year. While unfortunate, it's also an invitation to explore whiskies that are already available. Visit local craft distilleries’ tasting rooms and support small producers directly. Take a long weekend and visit your favorite Kentucky distilleries, or embark on a whiskey trail in Tennessee, Seattle, Texas, or elsewhere. Attend WhiskyFest New York on November 14th to sample from a huge selection of expressions and discover new favorites. Start or join a tasting club, or consider distillery membership programs that provide access to limited releases and single barrels—inventory that's already approved and ready to pour. While we wait for new releases, there's never been a better time to explore the exceptional whisky already on shelves.