The shelf looks like a renaissance—rows of elegant bottles, local labels, and stories that sparkle—but the numbers tell a tougher truth. We unpack why craft distilleries keep multiplying while their overall share of the U.S. spirits market shrinks, and how a tiny top tier within “craft” captures a disproportionate slice of volume. From wage spikes and glass shortages to barrel scarcity and cash flow strain, we trace how rising costs collide with a crowded field that can’t simply hike prices without losing precious placements.

We also open the black box of distribution. The three-tier system, born to fight monopoly power after Prohibition, now funnels small brands through consolidated gatekeepers with steep margins, long contracts, and franchise laws that make switching partners a slog. Meanwhile, wine ships DTC to most of the country while spirits are stuck in single digits, despite strong consumer demand for direct buying. Compliance adds friction too, as the TTB’s one-size-fits-all paperwork burden treats tiny producers like industrial giants.

There’s hope in the playbook of the adaptors. We spotlight a nimble brand reviving a regional name, finishing sourced whiskey in local wine barrels to stand out without massive capital outlays, and stitching together modern channels: self-distribution where legal, tech platforms that bridge to national wholesalers, and retailer-fulfilled e-commerce that navigates state lines. The marketing shift is trade-first—targeted buyer lists, useful product info, and direct access that beats waiting for an overextended distributor rep.

The takeaway is clear: great liquid is table stakes. Growth now depends on operational agility—finance, supply chain, compliance, and channel strategy—paired with policy that fits the 21st century. If you care about variety, local craftsmanship, and fair access to market, this is a conversation worth your time. If you learned something new, follow the show, leave a review, and share this episode with a friend who loves a good pour. What reform would you champion first?

More information about Corning & Company is available at https://www.corningandcompany.com