• Consumers have been spending less on luxury items.
  • A number of craft whiskey brands have struggled.
  • The entire industry has experienced a slowdown.

It’s not uncommon for a liquor or beer brand to have a folksy history. That makes sense because many people distill spirits as a hobby which can lead to people following the dream and turning their passion into a business.

A number of very famous whisky companies grew from basement or backyard operations. That list includes some massive success stories:

U.S. Craft whiskey success stories

  • Balcones Distilling (Texas)
    Founded by Chip Tate in a small building under a bridge in Waco, Texas (2008).

    Equipment was largely hand-built, including the copper stills.

    Grew from hobbyist roots into a nationally recognized craft whiskey brand.

    Now distributes internationally after significant investment and expansion.

  • High West Distillery (Utah)
    Started by David Perkins, a biochemist who began distilling experiments at home.

    Launched as a tiny Park City saloon distillery in 2007.

    Became a pioneer in Western craft whiskey, later acquired by Constellation Brands.

  • Corsair Distillery (Tennessee/Kentucky)
    Began in a garage in Bowling Green, Kentucky, by childhood friends Darek Bell and Andrew Webber.

    Known for experimental grains and smoked whiskeys.

    One of the first to popularize non-traditional mash bills (quinoa, oats, triticale).

  • Koval Distillery (Chicago, Illinois)
    Founded by Robert and Sonat Birnecker, who left academia to start distilling in 2008.

    Began in a garage-sized urban facility in Ravenswood.

    Became one of the first certified organic craft distilleries in the U.S.

  • FEW Spirits (Evanston, Illinois)
    Founded by Paul Hletko in a small garage setup in a city where alcohol was once banned.

    Started in 2011 after years of backyard experimentation.

    Focused on local grains and handmade small-batch whiskey.

  • Hudson Whiskey (New York)
    Founded by Ralph Erenzo and Brian Lee, who started distilling in an old granary barn at Tuthilltown in Gardiner, NY.

    Originally a small craft setup with homemade stills.

    Later sold to William Grant & Sons but kept its small-batch identity.

  • Stranahan’s Colorado Whiskey (Denver, CO)
    Founded by Jess Graber, a volunteer firefighter who began distilling after a barn fire led him to meet a brewer.

    Began in a small warehouse setup using handmade stills.

    Became one of Colorado’s first major whiskey names.

  • Hillrock Estate Distillery (New York)
    Among the first “grain-to-glass” distilleries emphasizing full farm control.

    Founded by Jeff Baker and Dave Pickerell, but early prototypes were garage experiments in estate-grown grain whiskey.

52eighty Distilling was a passion business

Like many of the companies listed above, 52eighty Distilling started as a passion project.

“52eighty Distilling is the culmination of a dream and a lot of hard work for the three owners. Growing up in Littleton, Colorado, the trio went to school together, played sports together, and worked together,” the company shared on its now-defunct website.

The founders made whiskey their passion.

When they weren’t working or coaching youth sports and immersing themselves in the community, the owners were busy brewing their own beer and distilling spirits.

That hobby led to the founding 52eighty Distilling — a distillery that “uses innovative distilling techniques, fresh and organic ingredients, and crisp Rocky Mountain water to produce excellent distilled spirits.”

Like many dream projects, however, 52Eighty Distilling has met an unhappy ending. The company has filed for Chapter 7 bankruptcy and its assets will be liquidated.

52eighty Distilling brands

  • Cackler’s Whiskey: A blended American whiskey combining traditionally aged bourbon with accelerated-aged rye bourbon, resulting in a smooth profile with hints of sweet honey and light smoke.
  • Hearthstone Whiskey: A blend of American rye and Irish whiskey, offering a spice-forward flavor profile.
  • Palisade Peach Vodka: Crafted using organic peaches from Palisade, Colorado, this vodka is noted for its clean and fruity character.
  • Winter Wheat Vodka: A gluten-free vodka made from winter wheat, known for its smooth and mellow taste.
52eighty Distilling has filed for Chapter 7 bankruptcy.

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52eighty Distilling Chapter 7 bankruptcy details:

  • Company: 52eighty Distilling Corporation, Littleton, Colorado
  • Filing type: Chapter 7 (voluntary)
  • Court: U.S. Bankruptcy Court for the District of Colorado
  • Case number: 25-16649
  • Filing date: October 14, 2025
  • Assets: $100,001 – $1,000,000
  • Liabilities: $1,000,001 – $10,000,000
  • Creditors: 1–49
  • Business type: Beverage Manufacturing
  • Interim trustee: Joli A. Lofstedt
  • Status: Company ceased operations; assets subject to liquidation
    Source: Inforuptcy

Craft whiskey brands have struggled

52eighty Distilling’s Chapter 7 bankruptcy can be blamed at least partly on larger trends.

“Consumers are still willing to spend a little more for that special bottle of spirits, but they are feeling the pinch in their wallets and are much more price conscious with their reduced discretionary dollars,” Distilled Spirits Council (DISCUS) CEO Chris Swonger told Fox Business. 

The industry, he noted, has been hurt by rising costs and pullbacks in consumer spending.

“Consumers have tightened their spending due to higher inflation and interest rates and retailers have slowed down restocking as they reduce the inventory build-ups that occurred when there was increased consumer demand,” he added.  

The American Craft Spirits Association also thinks that larger brands have been squeezing out their smaller competitors.

“As consolidation continues within all tiers (with the top 10 wholesalers holding 80% market share and the top two more than 50%), consumers are increasingly unable to locally access independent craft spirits products on shelves or behind the bar,” it shared on its website.

The trade association also shared some data from its members.

  • A majority of craft distillers (72%) have been seeking distribution in one or more states, but most of them (51%) have been turned down and 22% have entirely given up looking.
    •79% of distilleries with distribution relationships report that there are not viable alternatives to their current partners.