The challenging spirits industry has faced a wave of business closures in 2026, including a distillery and tasting room operated by Aviation American Gin, whose owners say the closing reflects evolving business needs.Actor Ryan Reynolds and Diageo’s Aviation American Gin distillery and visitor center in Portland, Ore., has permanently closed after four years of operation.
Aviation American Gin closed its distillery and visitor center in Portland, Ore., and moved production to other facilities. Shutterstock
Aviation American Gin closes distilleryA sign on the tasting room’s door at 2025 NW Wilson Street in Portland said the facility’s last day was June 28, Willamette Week reported.The popular gin brand was launched in 2006 by two Portland residents but sold several times before a partnership of Reynolds and London-based beverage company Diageo acquired the company in 2022 and opened the distillery and visitor center, according to KWG8-TV.”After careful consideration, we have made the difficult decision to close the Aviation Gin Visitor Center in Portland, Ore. This decision reflects evolving business needs, as we continue to support growth ambitions for our Aviation American Gin brand,” a Diageo spokesperson said.”Aviation American Gin remains an important part of Diageo’s portfolio and we are committed to the brand, our customers and consumers,” the spokesperson said.The property served as a distillery, packaging facility, and visitors’ center. When the facility opened, Reynolds described it as “Disneyland for adults” in a social media post. Aviation produced at other facilitiesBut after only three years of operating the facility, Diageo in 2025 began transitioning production to its other company facilities. The shift to other facilities was an effort of the company to create more resiliency and efficiency in their North America supply network, Diageo said.Diageo, which was formed in 1997 with the merger of Guinness and Grand Metropolitan, also owns major gin brands Gordon’s and Tanqueray. The company distills Aviation Gin using a unique maceration recipe and its botanicals are infused in grain for 18 hours.Distillery closings have been common in 2026, as several spirits companies shut down operations.Other spirits distilleries shut downDeep Eddy Vodka closed a tasting room and visitors’ center in Dripping Springs, Texas, on June 13 in a “consumer-facing shift, as part of an active effort to bring our experiences closer to Austin, where the brand was founded and where we see the greatest opportunity,” according to a company spokesperson.Deep Eddy Vodka transitioned the facilities in a sublease agreement to another Texas distillery not affiliated with Deep Eddy, Goodnight Loving Vodka, The Spirits Business reported.MGP Ingredients, which produces bourbon, vodka, tequila, and the Everclear brand, closed distilling operations at its Limestone Branch Distillery in Lebanon, Ky., and Lux Row Distillers in Bardstown, Ky., for a minimum of one year beginning May 1, 2026, according to a company statement.MGP Ingredients’ premium spirits brands include Penelope, Rebel, Remus, and Yellowstone bourbons, Pearl Vodka, El Mayor tequila, and Everclear, the 190-proof grain alcohol.MGP operates a tequila distillery in Arandas, Mexico, and has bottling operations in Missouri, Ohio, and Northern Ireland.Popular vodka and whiskey distillery Kingfly Spirits abruptly shut down its Pittsburgh Strip District operations on Feb. 11, posting a farewell message on its Facebook page on the same day.The distillery, tasting bar, and event space, which opened in February 2019, posted a message on its website about a week earlier, saying, “We are making some structural repairs in February,” but it changed its intentions.“After seven years of many ups, downs and alllll arounds, the team at Kingfly toasts you for the last time,” Kingfly said in a Feb. 11 Facebook post. “As of today, we are moving on to the next chapter of life and could not be more grateful for your friendship, patronage, support and celebration of what we did together.”Spirits sales declined in 2025The distilled spirits industry had a disappointing year in 2025, as spirits supplier sales declined by 2.2% to $36.4 billion, according to the Distilled Spirits Council of the United States.“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.Aviation American Gin history:Aviation American Gin founded in Portland, Ore., 2006.Actor Ryan Reynolds and Diageo purchase Aviation in 2022.Aviation American Gin Distillery and Visitor Center opens in Portland, Ore., in 2022.Diageo transitions Aviation production from Portland, Ore., to other facilities in 2025. Source: KWG8-TVDiageo closes Portland Aviation American Gin Distillery and Visitor Center on June 28, 2026. Source: Willamette WeekRelated: 86-year-old nationwide ice cream chain shutters 46 locations