A decline in consumer alcohol consumption has contributed to a decrease in sales of spirits and a drop in revenue at distilleries, such as Seattle-based 2Bar Spirits.
American adults have been drinking less alcohol in 2026 for the second straight year, as only 54% of U.S. adults ages 18 and over said they drink alcoholic beverages, matching the all-time low from 2025, the lowest number since 1939.
The share of American drinkers has declined significantly since 2022 when 67% of U.S. adults drank alcohol, according to Gallup’s Consumption Habits survey.
The decline in consumption also led to a drop in supplier sales in the spirits industry, as sales fell by 2.2% in 2025 to $36.4 billion, according to the Distilled Spirits Council of the United States.
When distillery sales drop, so does revenue. If the decrease in revenue is significant, it can lead to a bankruptcy filing.
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2Bar Spirits files for bankruptcy
Bourbon whiskey distillery 2Bar LLC filed for Chapter 11 bankruptcy to reorganize, facing a significant decline in revenue, which fell from over $489,000 in 2025 to over $182,000 in the first 10 months of 2026, according to court papers. The company generated over $381,000 in gross revenue in 2024.
2Bar did not indicate a specific reason for filing for bankruptcy in its Chapter 11 petition. The debtor’s distillery and tasting room continue operating as usual.
Founder and owner Nathan Kaiser, who opened the distillery in 2010, was not immediately available for comment.
The debtor filed its petition in the U.S. Bankruptcy Court for the Western District of Washington on Oct. 30, listing about $156,000 in assets and over$1.07 million in debts, including about $813,000 in secured claims.
2Bar’s secured creditors include Washington Trust Bank, owed over $634,000; Small Business Administration, owed over $124,000; and TD Auto Finance, owed over $53,000.
The debtor’s largest unsecured creditors include Bank of America, owed over $54,000, American Express, owed over $47,000; US Bank, owed over $45,000; and Discover Financial Services, owed over $9,000.
Family distilled moonshine in Prohibition
2Bar‘s name was inspired by Kaiser’s family ranch in South Texas, which produced moonshine during Prohibition, according to the company’s website.
Today, 2Bar’s all-woman production team uses Pacific Northwest grain to distill its spirits at one of the first distilleries in Seattle to produce bourbon, the company’s website said.
Company offers 4 different bourbons
The distillery produces four bourbon whiskies: 2Bar Straight Bourbon Whiskey 40% ABV aged over three years, 2Bar Straight Bourbon Whiskey 50% ABV aged over four years, Wine Barrel Finished Straight Bourbon Whiskey 45% ABV aged over three years, and Amaretto Barrel Finished Straight Bourbon Whiskey 45% ABV aged over three years.
2Bar’s products are available at various Walmart, Albertsons, Safeway, Fred Meyer, Trader Joes, Total Wine, and BevMo stores, and over 50 other retailers throughout Washington.
Other distillers filed for bankruptcy
The bourbon maker’s bankruptcy follows other spirits distilleries’ Chapter 11 filings in 2026, including Legends brands distiller Spirits of the USA LLC, which filed its Chapter 11 petition on May 15; and Alton Distillery parent SVG 26 LLC, which filed bankruptcy on April 15.
Several distillers have filed for Chapter 7 liquidation as well, including Humble Baron on Sept. 14, 2026, and Rotten Little Bastard Distillery parent RLB Distillery Company, which filed on March 10, 2026.
“While total U.S. spirits sales edged down 2.2% in 2025, the spirits industry remains resilient, driven by innovative products that continue to spark consumer interest,” said Chris Swonger, CEO of the Distilled Spirits Council.
“Against a challenging backdrop of weakening consumer confidence and persistent economic pressures, American adults continue to choose distilled spirits, with ready-to-drink cocktails standing out as a clear favorite,” Swonger said.
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