MGP Ingredients Temporarily Idles Two Distilleries Amid Inventory Adjustments

Written by Emily J. Thompson, Senior Investment Analyst

Source: Newsfilter

Updated: Apr 07 2026

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Should l Buy MGPI?

Source: Newsfilter

Production Adjustment: MGP Ingredients announced plans to temporarily idle its Limestone Branch and Lux Row Distillers in Kentucky starting May 1, 2026, to align with current inventory levels, with a potential resumption of operations in 12 months, affecting 33 employees across both facilities.
Ongoing Operations: Despite the idling of the two distilleries, MGP will continue operations at its largest facility in Lawrenceburg, Indiana, to support its brands and customers, ensuring product availability remains unaffected, demonstrating the company's adaptability in a challenging market environment.
Market Environment: CEO Julie Francis highlighted the structural oversupply in the American whiskey market, with elevated inventory levels, and stated that this decision aims to enhance operational efficiency and align with market demand, reflecting the broader challenges faced by the industry.
Future Outlook: MGP reaffirms its 2026 sales, adjusted EBITDA, and adjusted EPS guidance, indicating confidence in its future financial performance and aiming to adapt its production strategy to changing market conditions.

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Analyst Views on MGPI

Wall Street analysts forecast MGPI stock price to rise

4 Analyst Rating

3 Buy

1 Hold

0 Sell

Strong Buy

Current: 19.810

Low

24.00

Averages

34.75

High

45.00

Current: 19.810

Low

24.00

Averages

34.75

High

45.00

TD Cowen

Hold

downgrade

$24 -> $22

2026-02-27

Reason

TD Cowen

Price Target

$24 -> $22

AI Analysis

2026-02-27

downgrade

Hold

Reason

TD Cowen lowered the firm's price target on MGP Ingredients to $22 from $24 and keeps a Hold rating on the shares. The firm said 4Q results beat Street estimates, but 2026 guidance came in well below consensus as management expects another down year for the industry and their business.

Roth Capital

Buy

downgrade

$41 -> $32

2026-02-26

Reason

Roth Capital

Price Target

$41 -> $32

2026-02-26

downgrade

Buy

Reason

Roth Capital lowered the firm's price target on MGP Ingredients to $32 from $41 and keeps a Buy rating on the shares. The company's Q4 results exceeded guidance, the firm's estimates, and consensus, but its 2026 outlook shows that MGP is still at least several quarters away from showing y/y improvements, the analyst tells investors in a research note. Roth adds however that the stock's current valuation overstates the level of risk facing investors.

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About MGPI

MGP Ingredients, Inc. is a producer of branded and distilled spirits, as well as food ingredient solutions. Its offerings include bourbon and rye whiskeys, gins, and vodkas. It operates through three segments: Distilling Solutions, Branded Spirits, and Ingredient Solutions. Its Distilling Solutions Segment processes corn and other grains (including rye, barley, wheat, barley malt, and milo) into food-grade alcohol and distillery co-products, such as distillers feed, which are produced at its distilleries in Lawrenceburg, Indiana, and Bardstown, Kentucky. Branded Spirits segment consists of a portfolio of brands, which it produces through its distilleries and bottling facilities and sells to distributors or to state governments that directly control the sale of alcohol. Its Ingredient Solutions segment consists of specialty wheat starches, specialty wheat proteins, commodity wheat starches, and commodity wheat protein products which are sold to customers pursuant to purchase orders.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

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MGP Ingredients Temporarily Idles Distilling to Align Production with Inventory

Apr 07 2026seekingalpha

Distilling Suspension: MGP Ingredients will temporarily idle distilling at Limestone Branch Distillery and Lux Row Distillers starting May 1, 2026, to align production with current inventory levels, with operations potentially resuming in 12 months depending on inventory conditions.
Employee Impact: This decision affects 33 employees, with the company providing support during the transition to ensure stability and security for its workforce during this adjustment period.
Operational Continuity: Despite the distilling suspension, the Lawrenceburg Distillery will continue operations to meet ongoing demand, while warehousing, bottling, barrel programs, and visitor centers at both sites will remain fully operational, ensuring business continuity.
Financial Outlook Reaffirmed: MGP Ingredients reaffirms its financial outlook for 2026, projecting sales between $480 million and $500 million, indicating that the strategic portfolio rationalization is progressing without disruption.