Westward Whiskey CEO Thomas Mooney has said the US single-malt distiller “has a bright future” after filing for Chapter 11 protection.
In a statement, Mooney said the move was “a necessary step as we explore financial and strategic alternatives to better position our company to thrive as an independent craft distiller”.
Go deeper with GlobalData
Westward Whiskey, which made the filing in Delaware, “will continue to operate as usual and bring our world-class whiskeys to our growing consumer base”, Mooney added.
Nevertheless, he outlined the “numerous challenges that have put a significant strain on our business”, including falling demand “for bottled spirits in general” and cost inflation “that will only accelerate with tariffs”
Mooney also cited “market access constraints that make it difficult for independent craft spirits producers to reach consumers; large obligations that we entered into, at a different time and under different circumstances; and significant investment toward increasing production and inventory”.
He added: “We have chosen to embark on this process because we are confident that Westward has a bright future, and restructuring will position us to compete and win in the marketplace as it exists today, not as it was in the past.”
Westward Whiskey, founded in 2004 as House Spirits Distillery, received investment from Distill Ventures, the Diageo-backed accelerator, in 2018.
Last month, Diageo said it was halting new investment through the Distill Ventures programme.
In a statement, the UK giant, which had been Distill Ventures’ sole investor, said: “Following more than ten successful years partnering with Distill Ventures to nurture and scale emerging spirits brands, we have undertaken a strategic review of our approach to early-stage, venture investments.
“Moving forward, Diageo will not be bringing in any new brands into the Distill Ventures programme, whilst a smaller Distill Ventures team will remain in place to manage a reduced number of existing investments.”
Just Drinks asked Westward whether Diageo’s decision was a factor in the filing for Chapter 11. The company declined to comment.
