Global whisky slump forces Tasmania's distillers to lay off staff and pause
A global whisky downturn is forcing Tasmania's distilleries to cut staff and output.
Tasmania's thriving whisky industry is facing its biggest challenge since 1992, when small-scale distilling was finally allowed. Jim Beam has paused production at its main Kentucky site for all of 2026.
Scotland's Holyrood has halted indefinitely. Administrators have taken over GlenWyvis Distillery in the Highlands.
In Tasmania, McHenry Distillery has cut its core production staff. It laid off both of its brewers and one of its two distillers.
The founder now does most of the distilling himself. Rising costs and inflation are squeezing margins.
Customers are choosing cheaper imports. Whisky takes about 10 years to mature.
Production cuts now mean shortages later when demand returns. Some medium-sized distillers argue the federal alcohol excise scheme is stopping them from growing.
- 1992
- Year small distilling legalized
- Bill Lark
- Founder of modern Tasmanian whisky
- 3 people
- Staff laid off at McHenry
- 10 years
- Years whisky takes to mature
Why it mattersTasmania's whisky boom changed the state's economy and global reputation. A major collapse could wipe out jobs and investment in a regional hub.
AustraliaTasmanian distillery workers face layoffs. Export earnings from the industry may decline if the downturn persists. Local competition could increase as struggling distilleries fail.
✓ Claims checked against the source and corrected before publish. checked 5 h ago
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