Tarpon Springs distillery struggles amid rising costs and consumer habits

TARPON SPRINGS, Fla. — U.S. liquor distillers say the industry is being squeezed by changing customer habits and tariffs.

Barry and Lisa Butler, who own and operate the Tarpon Springs Distillery, say business is tough right now.

“I think there’s a lot of downward pressure on the whole, not only distillery but brewery industry in general,” Barry said.

Barry points to younger people drinking less alcohol and instead opting for alternatives like CBD drinks. On top of that, he says the slowing economy and inflation are taking their toll.

Prices for materials like metal and copper used in the distilling process have gone up, along with small items such as plastic cups.

“Bottles are up 50 percent since pre-COVID between transportation and the cost of that,” Barry said. “Packaging and labels are up probably 60 to 70 percent over what they were pre-COVID.”

He says he has seen other distilleries close, especially as demand decreases. According to the Distilled Spirits Council, exports have also dropped significantly, with an 85 percent decline to Canada and a 12 percent decrease to the European Union.

While Tarpon Springs Distillery doesn’t export, Barry added that one of the biggest drops in customer traffic comes from Canadian tourists, who once flocked to the area but have dwindled since the start of the trade war.

Despite the challenges, Barry remains hopeful that tourists and locals will return. He believes the business will make it through these rough times, though he remains cautious about where the industry is headed.