Craft distilling is at a turning point. After two decades of growth fuelled by innovation, storytelling, and local pride, it now faces a tougher, more competitive landscape. One that demands a different kind of thinking.
I believe the next era of craft distilling will be defined by depth.
Not just flavour depth. But brand depth, operational depth, and strategic depth. The producers who move in that direction will be the ones who stay relevant and resilient.
This article sets out the case for why that shift is needed, how we got here, and what the next generation of craft distilling will require.
The storm Craft Distilling is currently in
According to DISCUS, the number of active US craft distilleries declined year-on-year for the first time in over a decade. Here in the UK, the gin boom that propelled so many peaked years ago. In Australia, producers are grappling with punitive taxes that is suppressing growth. Meanwhile, craft distilling surges in markets like Argentina are slowing as the opportunities for hobby-scale producers are being taken by more commercially minded operations.
And in a climate where cost of living pressures are squeezing consumers and price points are under attack, it’s the multinationals, not the independents, who typically benefit most. Their scale allows them to offer “value”, whilst their brand presence reinforces trust.
The result? Craft finds itself priced out. Or worse, perceived as a product without the pull to justify listing it. It’s plainer than ever to see that brands with existing sales velocity – or budgets to support sell-in – are the ones who get priority.
That’s easier said than done. Growth has become harder to fund and momentum slow to materialise.
What I’m seeing is that financing is drying up and that distribution remains bottlenecked. There’s data to back this up in almost every market, but to illustrate it, let’s just zoom in on the USA for context.
The 2024 Craft Spirits Data Project, shows that while total investment by all craft producers increased to $885 million in 2023, the average amount invested per craft distiller declined for the second year in a row. It has gone from $337,000 in 2021 to $310,000 in 2023.
This suggests that while some capital is still flowing, many are scaling back plans or struggling to unlock funding. Either is a likely reflection of tighter financial conditions and more selective investor appetite.
Meanwhile, you may choose to look no further than the public assertions being made by almost every buyer about distribution channels remaining bottlenecked. Dozens speak about it weekly on LinkedIn.
In data terms however, if you look to the US for detail, home state sales now represent a greater share of total revenue for small and medium-sized producers, growing by 1.4 percentage points, while out-of-state sales have declined by 1.3 points.
This suggests that many distillers are finding it harder to break into new markets or scale through wider distribution due to the sheer cost and complexity of securing listings outside their local footprint.
The reset is playing out not just in sales and cashflows, but on production floors around the world.
A quick scan of The Spirits Business and you’ll see the news section littered with stories about major producers across the US, Scotland, and Ireland scaling back production – as overzealous forecasting collided with a cooling market.
But for craft brands, the pressure is mounting. While large-scale players may absorb temporary profitability hits and ride out the surplus, smaller producers often lack that buffer. Inventory levels built on pandemic optimism are now dragging on cash flow, forcing a reassessment of pricing strategies, production planning, and even brand positioning.
This in turn creates downward pricing pressure that is likely to continue over the next 18 months, especially for product-led rather than brand-led offerings. And that might be catastrophic for small operations.
The headwinds are real and being felt at all levels of operations and stages of the route to market – but it’s not all doom and gloom.
Yes, this is a global correction. Yes, craft distilling is at a crossroads. But this is also a moment of opportunity. A moment where brand clarity matters more than ever and a chance to create strategic depth.
We’ll come to that in a moment, but first let’s look at the journey craft has been on over 20 years to contextualise the scene further.
Craft Distilling’s three “eras” of innovation have built an industry. But a fourth is overdue.
The craft distilling movement has flourished over the past 20 years. It’s also evolved significantly. Yes, the headline will always be that it went from several hundred to several thousand since 2005, but it’s also gone from a cottage industry to something far more professional in that time too.
I believe that it’s possible to group the evolution of craft distilling into three chapters so far.
The early years of modern craft distilling were marked by presence: being the first in your area, the first to make something different, or simply being small and local. That was hugely disruptive for the industry at the time. Compared to the multinational offerigns – the innovation and entrepreneurial draw from the craft sector was compelling.
Then came the experience era: distillery tours, make-your-own-gin classes, immersive (interconnected) hospitality. These were lateral innovations that helped deepen consumer connection. They helped craft operations embed themselves in their communities and become destinations.
The third wave was all about expansion: more SKUs, broader portfolios, sustainability commitments, and category-defining releases. More structure forms around the industry (guilds, events, collaborative associations, export missions etc.). It’s the stage at which buy outs start to become a thing and where the big players of the craft revolution achieve serious scale.
Each wave brought growth in volume, value and brand density. Each has further developed the ecosystem that surrounds the distilling industry. But now? It’s saturated. Local craft players are expected to be good. And because so many are working off the same playbook and repeating the same ideas as those before them – it’s why producers are no longer differentiating.
To remain relevant and build true brand strength, craft distilling must take the next step. It needs to evolve once more and it’s why I believe the next era is going to be about depth.
Why depth is the next logical evolution
It’s worth restating for those who jumped ahead. The next era of craft distilling will be defined by depth because the previous waves have run their course. Novelty has faded. Experiences have become formulaic. Expansion without coherence is starting to confuse rather than convert.
As categories mature, brands need more than a compelling origin story or pretty label.
They need consistency, credibility, and commercial clarity. They need to go beyond the reliance on only local sales too…
Depth means building layered brand worlds with emotional relevance that can travel. That connect. It means operating with strategic intent, developing internal systems that can scale, and telling stories that reflect consumer identity, not just distillery history.
It also means showing up with consistency across digital and physical channels. Many craft operations are still failing at that. It’s amazing to think too, as in an age of information overload, being discoverable, deliberate and coherent across touchpoints ought to be universally understood.
Finally, the reason that I think this next era will be about depth is because I believe that depth enables resilience. It’s what lets producers withstand margin pressures, adapt to changing distribution, and thrive in a fragmented media environment.
Those challenges are only going to increase. And just to restate it – it’s why brands with shallow differentiation will be the first to disappear.
It will be those who develop deeper operational capabilities, content strategies that create true advocacy, consumer focus and brand coherency (with emotional resonance) who will be positioned not just to survive – but to lead.
What the next generation of craft will require?
If the next chapter of craft distilling is about depth, then it follows that thriving in this moment demands a deeper level of strategic maturity.
First, digital presence can no longer be an afterthought. A strong website, cohesive social content, and a functioning CRM system aren’t marketing add-ons. They’re foundational tools that shape perception, build trust, and drive revenue.
Despite this being true for the past five years, most craft brands are still under-invested here, relying on outdated websites and sporadic posts.
And in 2025, that’s not just a missed opportunity, it’s increasingly a commercial liability.
Second, brand clarity must replace brand clutter. Many producers talk about what they make, but struggle to express why it matters. The brands that will win in this cycle are those that understand what they reflect back to their drinkers – how they resonate, what role they play, and why someone should care. They will be the ones with well considered Go To Market plans.
That means tightening your message, refining your identity, and ensuring that everything from your bottle design to your backstory aligns with a clear emotional hook. At the same time, operational confidence is non-negotiable. Consistency, flavour integrity, and cost control are the new baseline. We’re 25 years into the craft distilling boom – and what i’m talking about should not be aspirational, merely a baseline expectation to begin from.
Finally, every successful craft business will need to master the mechanics of brand building.
That means having systems in place such as messaging frameworks, tone of voice guidelines, trade tools, and sales strategies that are aligned and repeatable. It also means investing in content that converts.
DIY only gets you so far. Especially online and with an industry that is advancing and professionalising constantly. Those that are still relying on sporadic BTS content, flash sales tactics and strategies that worked way back when will falter. Your competitors are not amateur anymore, and the way content is consumed is in a vastly different landscape now than it was a few years ago.
You need discipline to build depth, and it’s time for the craft sector to embrace it.
Craft distilling was never going to be easy. It’s a young sector, still finding its footing. But it was built on the belief that independent producers could make remarkable spirits and build resilient, fulfilling businesses while doing so.
I believe that promise still holds – if you’re willing to build with depth.
So here’s the ask. Not for perfection. Not for scale at any cost. But to go out and build depth – whatever that looks like in your business.
Take the time to reassess your strategy. Audit your digital presence. Tighten your brand story. Rebuild your commercial tools. Depth doesn’t mean doing more, it means doing better (with greater focus, intention, and coherence).
The next era won’t reward those shouting the loudest. It’ll reward those building the strongest foundations.
Written by Olivier Ward – 25th June 2025
