It’s been a rough stretch for the folks in Lebanon. If you’ve spent any time around Marion County, you know that the hum of the Kentucky Cooperage is basically the heartbeat of the town. But lately, that heartbeat has skipped a few beats. Back in late 2025, the Independent Stave Company (ISC) dropped a bombshell that nobody wanted to hear: they were cutting 112 jobs at the Lebanon facility.
Honesty is the best policy here, and the truth is that the bourbon industry—the very thing Kentucky hangs its hat on—is hitting a wall. We aren't just talking about a little dip in sales. We are looking at a massive market correction that is rippling through every warehouse and stave mill in the state.
📖 Related: Track My Federal Tax Return: Why Your Status Isn't Updating and How to Actually Fix It
The Reality of the Lebanon Job Cuts
When the WARN notice (Worker Adjustment and Retraining Notification) hit the desk of state officials on August 19, 2025, the numbers were stark. Out of the 112 positions being eliminated, 90 of them were production roles. These are the men and women who actually build the barrels, the ones with the soot on their faces and the calluses on their hands.
The company basically said they had to consolidate. They moved the Lebanon plant to a single shift.
Why? Because the world just isn't buying bourbon quite like it used to during the pandemic "glory days." ISC’s spokesperson put a corporate spin on it, calling it a "strategic decision" to ensure "long-term strength." That sounds fancy, but for a family in Lebanon suddenly looking at an empty chair in the breakroom, it just feels like a gut punch. The layoffs were scheduled to start officially on October 19, 2025.
Why the Bourbon Bubble is Leaking
You’ve probably seen the headlines. Bourbon has been booming for a decade. Every celebrity has a brand, and every liquor store has a line out the door for limited releases. But you can only build so many rickhouses before you run out of people to drink the stuff.
- Oversupply: There are currently over 16 million barrels of bourbon aging in Kentucky right now. That is a record. It sounds great until you realize that supply is starting to outpace what people actually want to buy.
- The Export War: Between tariffs and shifting trade relations with Canada and the EU, selling "America’s Native Spirit" overseas has become a logistical nightmare.
- Changing Tastes: Younger generations are kinda moving away from heavy spirits. They’re looking at non-alcoholic options or RTDs (ready-to-drink cocktails in a can).
It isn't just Lebanon, either. Brown-Forman, the giant behind Jack Daniel’s, shut down its historic Louisville cooperage entirely in April 2025. They cut over 200 jobs there and decided it was cheaper to just buy barrels from someone else (ironically, often from ISC) than to make them themselves. Even Jim Beam announced they are pausing production at their main Clermont distillery for the entirety of 2026.
When the biggest names in the game are hitting the "pause" button, you know the industry is catching a cold.
The Local Impact in Lebanon
Lebanon isn't a huge city. When a major employer like Kentucky Cooperage—located right there on East Main Street—shrinks by over 100 people, everyone feels it. The local diners see fewer people at lunch. The gas stations see fewer fill-ups.
The Independent Stave Company has been around since 1912. They know how to survive. They actually bought the old Brown-Forman facility in Louisville for $13.66 million last year, but they haven't restarted production there. They are essentially consolidating their power, trying to wait out the storm.
The crazy part? While they are cutting jobs in Lebanon, they are still investing in places like Scotland. It shows that the global whiskey market is shifting. Bourbon is currently the one taking the hit while other spirits find their footing.
What Most People Get Wrong
A lot of folks think these layoffs mean the Lebanon plant is closing. It’s not. The facility is still running. It’s just leaner. The company is trying to stay "agile," which is business-speak for "we don't want to go bankrupt if sales drop another 10%." They’ve kept the flexibility to scale back up if the market rebounds, but honestly, nobody knows when that will be.
There's also this myth that the barrel tax phase-out would save these jobs instantly. Kentucky has a weird tax where distilleries pay property tax on every barrel aging in a warehouse. The state finally agreed to phase it out over 20 years, starting with a 4% reduction in 2026. While that helps the big distilleries' bottom line, it doesn't necessarily stop a cooperage from cutting shifts today.
Actionable Steps for Affected Workers and the Community
If you were part of the 112 or you're worried about the next round, standing still isn't an option. The landscape is changing, and the skills used in a cooperage—woodworking, heavy machinery operation, logistics—are actually in high demand in other sectors if you know where to look.
1. Leverage the Rapid Response Team
The Kentucky Career Center usually activates a Rapid Response team for layoffs of this size. If you haven't checked in with the Lebanon office, do it. They have specific pots of money for retraining that "regular" unemployed people can't always access.
2. Look Toward Specialized Manufacturing
Kentucky is seeing a massive surge in EV battery manufacturing and aerospace components. These plants are desperate for people who understand "industrial rhythm" and safety protocols. Your experience at the cooperage is a direct bridge to these higher-paying roles.
3. Monitor the "Bourbon Correction"
If you’re a local business owner in Lebanon, it’s time to diversify. Don't rely solely on the foot traffic from the cooperage shifts. The "Bourbon Boom" is transitioning into a "Bourbon Plateau." It’s not a collapse, but the days of easy, endless growth are likely in the rearview mirror.
4. Check Your Severance and Benefits
ISC promised outplacement services and severance. Make sure you are using every bit of the resume-building help they offer. Often, these corporate packages include credits for certifications that expire if you don't use them within six months.
The Kentucky Cooperage remains a titan of the industry, but the 2025-2026 era will be remembered as the moment the barrel-making world had to face reality. It’s a transition period. It’s painful. But for Lebanon, the goal now is to bridge the gap until the next "whiskey weather" cycle begins.