How Select Distillers Supports Craft Distilleries Amid 25% Market Contraction
- Ken Burrows
- Dec 22, 2025
- 2 min read
The craft distillery industry has faced a sharp contraction of about 25% recently, putting many small producers at risk. This decline challenges the survival of unique, locally crafted spirits that have gained loyal followings. Select Distillers has stepped in with targeted support to help these craft distilleries navigate the tough market conditions and maintain their presence.
Understanding the Market Contraction
The 25% contraction in the craft distillery market stems from several factors:
Increased competition from larger brands with more resources
Rising costs of raw materials and production
Distribution challenges due to limited networks
Changing consumer preferences and reduced spending on premium spirits
Many craft distilleries operate on thin margins, so these pressures quickly impact their ability to stay afloat. Without intervention, the industry risks losing many of its small, innovative producers.
How Select Distillers Provides Practical Support
Select Distillers focuses on helping craft distilleries survive and adapt through a combination of services and partnerships:
Access to Quality Ingredients at Lower Costs
One major expense for craft distilleries is sourcing high-quality grains, botanicals, and yeast. Select Distillers negotiates bulk purchasing agreements with suppliers, passing savings on to smaller distilleries. This reduces production costs without compromising quality.
Shared Production Facilities
Not every craft distillery can afford expensive distillation equipment or large spaces. Select Distillers offers shared-use distillation facilities where multiple producers can rent time and space. This arrangement lowers capital expenditures and allows distilleries to scale production flexibly.
Distribution and Retail Connections
Many craft distilleries struggle to get their products into stores and bars. Select Distillers maintains relationships with distributors and retailers focused on craft spirits. They help smaller producers gain shelf space and tap into new markets, increasing sales opportunities.
Marketing and Brand Support
While craft distilleries excel at creating unique products, marketing often falls behind due to limited budgets. Select Distillers provides marketing guidance, promotional materials, and event support to boost brand visibility. This helps distilleries connect with consumers and build loyal followings.
Educational Workshops and Industry Insights
Select Distillers organizes workshops on production techniques, regulatory compliance, and market trends. These sessions equip craft distillers with knowledge to improve operations and adapt to changing conditions. Sharing industry insights also fosters a collaborative community.
Real-World Impact: Case Examples
Several craft distilleries have benefited from Select Distillers’ support:
Riverbend Distillery reduced ingredient costs by 15% through bulk purchasing, allowing them to lower prices and attract new customers.
Oak & Grain Spirits expanded production capacity by using shared distillation space, increasing output by 30% without major investment.
Maple Hollow Distillers gained access to new retail outlets through Select Distillers’ distribution network, boosting sales by 25% in six months.
These examples show how practical support can help craft distilleries survive and even grow during challenging times.
What Craft Distilleries Can Do Next
Craft distilleries facing market contraction should consider:
Partnering with organizations like Select Distillers to reduce costs and expand reach
Exploring shared production facilities to manage capital expenses
Investing in marketing efforts to strengthen brand presence
Staying informed about industry trends and regulations through workshops and networking
By taking these steps, craft distilleries can improve their resilience and continue offering unique spirits to consumers.
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