Headframe Spirits is pausing contracted production of American single malt whiskey at its Kelly Mineyard facility in Butte for the foreseeable future. The decision affects one contract client and does not impact the company’s own brands, including Orphan Girl Bourbon Cream Liqueur, or its Butte tasting room.

The facility holds about 15,000 barrels of whiskey made from Montana grain. Headframe owner John McKee said the client asked to pause production because current manufacturing costs exceed what it believes the whiskey can sell for. The client still hopes to release the product if market conditions improve.

McKee cited a broader downturn in the spirits industry, recessionary pressures and rising local compliance costs as factors behind the decision. The contract supports about 40% of Headframe’s full-time workforce. Affected employees will continue working through the end of the year and will be offered severance packages.

Headframe is also looking ahead to an expansion into upstate New York, new whiskey flavors planned for 2027 and an employee-owned trust intended to keep the company locally rooted.