BUTTE, Mt. — Due to the economy and factors outside of their control, Headframe Spirits is pausing contracted production of their American single malt whiskey product at the Kelly Mineyard for the foreseeable future.
The development applies exclusively to the single contract distilling client and in no way affects Headframe's proprietary brand portfolio, flagship products like Orphan Girl Bourbon Cream Liqueur, or the operation of the Headframe Tasting Room in Butte.
Watch here, economic and regulatory costs cause a pause in their contracted production of American single malt whiskey:
Nestled deep within whiskey barrels stacked nearly to the roof of the manufacturing facility, a tiny room complete with couches and fairy lights is a sanctuary for Headframe Spirits owner John McKee and his employees.
"I mean, when you have this many barrels, you should build yourself a fort to be inside. It’s a place we come when we have really good days. It’s a place we come when we have really bad days," says McKee.
Headframe Spirits is comprised of two parts: a tasting room and production facility on Montana Street, and a larger manufacturing facility at the Kelly Mineyard, where they produce thousands of barrels of American single malt whiskey.
"About six years ago, this client came to us and said they wanted to make American single malt whiskey. They wanted it made from Montana grain, and they wanted it made in Montana, and so we said, ‘Well, we got you!’
The facility now holds 15,000 barrels of single malt whiskey, a rarity in the United States.
As McKee expresses pride in a product made by the hands of Mining City workers, he also expresses sadness and disappointment.
"The client sort of came to us and said, ‘Look, we need to hit pause because the cost of making this stuff is larger than what we think we can sell it for right now. We need to just take a breath and see if we can’t see if the market comes back,’" said McKee.
McKee says the goal is still to release the single malt whiskey, but broader economic factors, including a national and global downturn in the spirits industry, persistent recessionary pressures, and mounting compliance costs associated with local regulatory requirements in Butte-Silver Bow County, are contributing to the pause.
"The biggest thing that really pains us, is this affects about 40% of our full-time workforce, and because this contract employs them, when this contract is put on pause, there is no money to employ them anymore."
Employees with the single malt contract will continue to work through the end of the year and will be offered a severance package.
"For people losing their jobs, this is more than a setback. This is a really big deal. I mean, no one should ever lose their job because some factor out of their control leads to that," said McKee.
But, as for Headframe Spirits, John says every company has ups and downs.
In the coming year, Headframe has big things to look forward to with an expansion into upstate New York market.
The family-owned company is also looking forward to the release of new whiskey flavors in 2027, as well as the creation of an employee-owned trust allowing the employees to take over the company, a move that McKee says will keep the company rooted locally and thriving for decades to come.
"Headframe is fine! Please drink some more whiskey! We’ll be okay. But, we really do feel for the people that lost their jobs doing this, and we really don’t feel it isn't fair."
