Here are 1-2 brief analogies to describe MGP Ingredients:

• MGP Ingredients is like the "Intel Inside" for many distilled spirits brands, producing the core alcohol for others, while also selling their own branded liquor.
• Separately, they are also a specialty food ingredient supplier, similar to a smaller Ingredion.

• Distilled Spirits: Produces various food-grade alcohols for beverage applications like bourbon, rye whiskey, vodka, and gin.
• Industrial Alcohol: Manufactures food-grade industrial alcohol for use in foods, personal care, cleaning solutions, and pharmaceuticals.
• Fuel Alcohol: Supplies fuel-grade alcohol for blending with gasoline.
• Distillers Co-products: Offers distillers feed and corn oil, which are by-products of the distilling process.
• Warehouse and Blending Services: Provides barrel storage, retrieval, and blending services for spirits.
• Branded Spirits: Sells its own portfolio of ultra-premium, premium, mid, and value branded distilled spirits.
• Specialty Wheat Starches: Produces specialized wheat starches such as Fibersym and Resistant Starch for food applications.
• Specialty Wheat Proteins: Provides specialty wheat proteins like Arise and Proterra for various food applications.
• Gluten-Free Textured Pea Proteins: Offers gluten-free textured pea proteins for food applications.
• Commodity Wheat Products: Supplies commodity wheat starch and wheat proteins for both food and non-food uses.

MGP Ingredients (MGPI) primarily sells its products to other companies. Based on the provided description, its major customer categories are:

• Food and Beverage Manufacturers and Processors: This includes companies that purchase MGP Ingredients' distilled spirits (such as bourbon, rye whiskeys, and grain neutral spirits), branded spirits, and a wide array of food ingredients (including specialty wheat starches, proteins, and gluten-free textured pea proteins) for use in their finished packaged goods. This category also encompasses bakeries, which are specifically mentioned as direct customers.
• Industrial, Personal Care, and Pharmaceutical Companies: These customers utilize MGP Ingredients' food-grade industrial alcohol as a key ingredient in various products, including personal care items, cleaning solutions, and pharmaceuticals.
• Fuel/Energy Companies: This category includes companies that purchase MGP Ingredients' fuel-grade alcohol for blending with gasoline.

Julie Francis, President and Chief Executive Officer

Ms. Francis became President and Chief Executive Officer of MGP Ingredients and a member of its board of directors in July 2025. She oversees the company's global business strategy and operations, bringing over three decades of experience in the branded food and beverage industries. Prior to joining MGP, Ms. Francis served as Chief Operating Officer at Schwan's Company, a prominent frozen foods provider. Her responsibilities there encompassed consumer brands, food service, operations, supply chain, global R&D, and marketing functions. Before Schwan's Company, she held the position of Senior Vice President of Commercial and Category Development for Constellation Brands' Total Beverage Alcohol platform. Ms. Francis also worked at The Coca-Cola Company as Chief Commercial Officer for Coca-Cola Refreshments USA and in various leadership capacities at Coca-Cola Enterprises. She played a key role in integrating the U.S. segments of these two companies to form the Coca-Cola Refreshments (U.S.) subsidiary. Ms. Francis currently serves as a director and member of the Compensation & Corporate Governance Committee for Ascend Wellness Holdings (AAWH).

Brandon Gall, Chief Financial Officer

Mr. Gall has served as Chief Financial Officer of MGP since 2019 and as Treasurer since 2023. In these roles, he is responsible for the company's accounting, business development, financial planning and analysis, treasury, investor relations, tax, and IT functions. Notably, Mr. Gall also served as the company's Interim President and CEO during 2025. He joined MGP in 2012 and progressed through several leadership positions, including Director of Financial Planning and Analysis, Director of Supply Chain Finance, Director of Business Development, and Corporate Controller.

Chris Wiseman, Senior Vice President, Operations

Mr. Wiseman joined MGP as Senior Vice President, Operations in October 2025, overseeing all aspects of operations across the organization. He brings nearly two decades of extensive manufacturing and supply chain expertise, cross-functional leadership skills, and a proven track record of operational excellence. Before joining MGP, Mr. Wiseman was the Vice President of Manufacturing at Schwan's Company from 2017 to 2025, where he held increasingly responsible roles. Prior to his tenure at Schwan's, he managed multiple facilities for Bimbo Bakeries USA from 2012 to 2017.

Matias Bentel, Chief Marketing Officer

Mr. Bentel was appointed Chief Marketing Officer of MGP Ingredients in October 2025, reporting to the President and CEO. He oversees all marketing initiatives, including brand strategy, innovation, consumer engagement, and digital marketing. Mr. Bentel brings extensive leadership, marketing, and general management experience, having most recently served as the Executive Vice President, Chief Brands Officer at Brown-Forman Corporation. Before his time at Brown-Forman, he held various marketing roles at Diageo and Allied Domecq.

Dr. Viswas Ghorpade, Vice President of Research & Development

Dr. Ghorpade joined MGP Ingredients in July 2024 as the Vice President of Research & Development, where he is responsible for the R&D efforts within the Ingredient Solutions business. He possesses extensive expertise in ingredient functionality, product development, extrusion processing, and co-manufacturing management. Prior to joining MGP, Dr. Ghorpade served as Vice President of Commercialization at Black Sheep Foods from 2021 to 2024, leading the operation and commercialization functions.

Key Risks to MGP Ingredients (MGPI)

1. Volatility in Raw Material Costs and Availability: MGP Ingredients relies heavily on agricultural commodities such as corn for its distilled spirits production and wheat for its ingredient solutions. Significant fluctuations in the prices of these raw materials, or disruptions in their supply due to factors like weather events, geopolitical issues, or changes in agricultural policies, could substantially increase the company's cost of goods sold and negatively impact profitability across its Distillery Products and Ingredient Solutions segments.
2. Evolving Consumer Tastes and Dietary Trends: The company operates in both the distilled spirits and food ingredient markets, which are highly susceptible to changes in consumer preferences. Shifts in drinking habits (e.g., preferences for different spirit categories or non-alcoholic options) could affect its Branded Spirits and Distillery Products segments. Similarly, evolving dietary trends, such as increased demand for plant-based proteins or a decline in wheat-based consumption, could impact its Ingredient Solutions segment, despite the company's efforts to adapt with products like gluten-free textured pea proteins.
3. Regulatory and Excise Tax Changes: MGP Ingredients operates in heavily regulated industries, particularly in the production and sale of distilled spirits. Changes in alcohol regulations, such as new licensing requirements, restrictions on marketing and distribution, or increases in excise taxes at federal, state, or international levels, could significantly impact the profitability, sales volume, and competitive landscape for its Distillery Products and Branded Spirits segments.

The accelerating global shift to electric vehicles (EVs) poses a clear emerging threat to MGPI's fuel-grade alcohol business, as demand for gasoline-blended fuels is projected to decline significantly over the coming decades. This trend mirrors historical disruptions where a new technology (EVs) fundamentally undermines an existing market (gasoline/ethanol).

The increasing consumer trend towards non-alcoholic and low-alcoholic beverages represents an emerging threat to demand for traditional distilled spirits. This developing market for substitute products could impact both MGPI's Distillery Products segment, as a supplier of alcohol for beverages, and its Branded Spirits segment.

MGP Ingredients (MGPI) operates in diverse markets related to distilled spirits and food ingredients. The addressable market sizes for its main products and services vary by product type and geographic region.

Distillery Products Segment

• Distilled Spirits (overall): The global distilled spirits market was valued at approximately USD 209.74 billion in 2024 and is projected to reach about USD 271.94 billion by 2032. Another estimate placed the global market at USD 424.82 billion in 2024, with a projection to reach USD 641.84 billion by 2033. In the United States, the distilled spirits market, based on supplier sales, totaled USD 37.2 billion in 2024. The U.S. distilled spirits market is also estimated at USD 32.46 billion in 2025, with an expectation to grow to USD 41.58 billion by 2032.
• Rye Whiskeys: The global rye whiskey market was estimated at USD 5.2 billion in 2024 and is projected to grow to USD 9.1 billion by 2033. North America, a key region for rye whiskey, accounted for approximately 58% of the total market revenue in 2024, representing a market size of USD 3.0 billion.
• Vodka: The global vodka market size was estimated at USD 28.07 billion in 2024 and is projected to reach USD 40.25 billion by 2030. Another source valued the global vodka market at USD 30.51 billion in 2025, with a forecast to grow to USD 54.1 billion by 2034. North America held the largest share of the vodka market, accounting for 34.90% in 2024. The U.S. vodka market alone recorded sales of USD 7.2 billion in 2024.
• Gin: The global gin market size reached USD 16.7 billion in 2024 and is expected to grow to USD 23.9 billion by 2033. Another valuation set the global market at USD 25.64 billion in 2024, anticipating growth to USD 45.63 billion by 2032.
• Food-Grade Industrial Alcohol: The global industrial alcohol market was valued at USD 152.12 billion in 2024 and is projected to reach USD 376.69 billion by 2033. The North American industrial alcohol market was valued at USD 32.12 billion in 2024 and is projected to grow to USD 82.84 billion by 2033. The U.S. industrial alcohol market is projected to reach USD 73.15 billion by 2027.
• Fuel-Grade Alcohol (Ethanol): The global fuel ethanol market size was valued at USD 100.9 billion in 2023 and is projected to reach USD 144.3 billion by 2030. Another estimate for the global market size was USD 88.51 billion in 2024. In the United States, the ethanol fuel market was valued at USD 27.6 billion in 2024, with expectations to reach USD 42.1 billion by 2032. The U.S. market accounted for 48.4% of the global market in 2023.

Ingredient Solutions Segment

• Specialty Wheat Starches and Proteins: null
• Gluten-Free Textured Pea Proteins: The global textured pea protein market size was valued at USD 819.57 million in 2025 and is expected to reach USD 1,356.39 million by 2033. Another report indicated the market was USD 2.572 billion in 2024, with a projection to reach USD 7.808 billion by 2035. North America is the largest market for textured pea protein, holding approximately 45% of the global share. The overall U.S. pea protein market (which includes textured pea proteins) was estimated at USD 482.9 million in 2023, and is expected to reach USD 1,127.5 million by 2030.

• Expansion of the Premium-Plus Branded Spirits Portfolio: MGP Ingredients is placing a high emphasis on expanding its high-end U.S. whiskey, tequila, and gin offerings, such as Penelope Bourbon, Yellowstone Bourbon, and Dos Primos Tequila. This premium-plus portfolio has demonstrated strong growth and higher margins, with the company aiming to add new high-quality branded spirits to its collection.
• Broadening Branded Spirits Distribution and Marketing: To support its premiumization strategy, MGP Ingredients plans to expand its distribution channels to increase brand availability. Concurrently, the company intends to invest in targeted marketing initiatives to enhance brand awareness and connect with consumers across various platforms.
• New Product Innovation in Branded Spirits: Innovation is a focus for the Branded Spirits segment, with plans to explore new flavors, packaging formats, and consumer experiences. Recent successful launches, like Penelope Wheated and Penelope Ready-to-Pour cocktails, illustrate the potential for growth through new product introductions.
• Growth in High-Margin Specialty Wheat Products within Ingredient Solutions: The company is strategically shifting its Ingredient Solutions sales towards higher-priced, higher-margin specialty wheat products, including dietary fibers, plant proteins (e.g., Arise and Proterra), and clean-label starches (e.g., Fibersym and FiberRite RW Resistant Starch). This pivot caters to increasing consumer demand for plant-based and nutritional foods.
• Operational Improvements and New Customer Commercialization in Ingredient Solutions: MGP Ingredients anticipates a recovery and growth in its Ingredient Solutions segment, driven by sustained commercial tailwinds and expected operational improvements. The segment is also seeing growth from the commercialization of new domestic customers, particularly in extrusion protein sales.

Share Repurchases

• MGP Ingredients' board of directors approved a share repurchase program of up to $100.0 million of its common stock on February 29, 2024.
• The company's buyback yield for fiscal years ending December 2021 to 2025 averaged 1.2%.
• MGP Ingredients' buyback yield peaked in December 2024 at 5.6%.

Share Issuance

• As part of the Luxco acquisition completed in April 2021, Luxco shareholders received 5.0 million shares of MGP common stock, valued at approximately $238 million as of January 11, 2021.
• The average shares outstanding for the full year 2025 were approximately 21.44 million.
• Weighted average basic shares outstanding are expected to be approximately 21.4 million for 2026.

Outbound Investments

• MGP Ingredients completed the acquisition of Luxco, Inc. on April 1, 2021, which significantly diversified the business and established the Branded Spirits segment.
• In 2023, the company acquired Penelope Bourbon for a total consideration of up to $215.8 million, consisting of an upfront payment of $105.0 million and potential earn-out payments of up to $110.8 million contingent on performance.
• An earn-out payment of $111 million related to the Penelope acquisition is anticipated in the second quarter of 2026.

Capital Expenditures

• Capital expenditures for 2025 totaled $32 million, representing a decline of over 50% from the prior year.
• Capital expenditures were $71 million in 2024, $55 million in 2023, and $45 million in 2022.
• Expected capital expenditures for 2026 are approximately $20 million.