ATCHISON, KANSAS, US — MGP Ingredients Inc. has named chief financial officer Brandon Gall as interim president and chief executive officer, taking over from David Bratcher, who is slated to resign from his post at the end of this month.

MGPI’s board of directors announced the move on Dec. 20. Plans call for Gall to add the president and CEO duties to his current responsibilities as CFO, effective Jan. 1. Bratcher also is slated to resign from the board on Dec. 31 but serve in an advisory role to aid in the leadership transition, after which he plans to retire, according to the company.

MGPI also said current board member Donn Lux will take over from Karen Seaberg as chairman “to guide the company during this challenging environment for the alcohol spirits industry,” with Seaberg remaining a board member.

Atchison, Kan.-based MGPI, a producer of branded and distilled spirits and food ingredient solutions, didn’t provide a reason for Bratcher’s planned departure or a timetable for the change at chairman. The company, however, reaffirmed its fiscal 2024 sales and adjusted earnings outlook.

“On behalf of the board of directors, I want to thank David (Bratcher) for his dedication to MGP, and we wish him the best in his future endeavors,” Seaberg said. “I am delighted the board has appointed Brandon Gall as our interim president and CEO and welcome Donn Lux as the incoming chairman. Donn’s decades of branded spirits experience, vision and leadership uniquely positions him to guide MGP toward becoming a premier branded spirits company.”

Upon his exit, Bratcher will have served a year as CEO and a board director at MGPI. Before becoming CEO and joining the board, he served as chief operating officer from July 2021 to December 2023 and president of branded spirits since the company’s merger with Luxco Inc. in April 2021 to December 2023.  

“It has been a privilege to serve as president and CEO of MGP after leading Luxco for many years,” Bratcher said. “I am deeply grateful to our incredible team for their hard work, dedication and commitment to our shared vision. I also want to express my heartfelt gratitude to my family for their unwavering support and encouragement throughout this journey. As I step away, I am confident that MGP is in excellent hands and will continue to thrive in the years to come.”

Gall joined MGPI in 2012 and has served as CFO since April 2019. As Gall takes on an expanded role, MGPI cited his extensive experience in finance and strategic planning and deep knowledge of the company’s business and operations.

“I am honored to step into the role of interim president and CEO,” Gall said. “I am committed to ensuring continuity and driving forward our strategic initiatives during this transitional period.”

MGPI said Lux, president and CEO of Luxco from 1991 until March 2021, will lead the board’s search for a permanent CEO at MGPI, with internal and external candidates to be considered.

“I am honored to step into the role of chairman of the board and deeply grateful for the trust and support of my fellow board members,” Lux said. “I want to thank Karen (Seaberg) for her exceptional leadership and the strong foundation MGP has built under her leadership. We are fortunate to have Brandon’s knowledge and experience during this transition period. As we look ahead, I am excited to work alongside our talented board and executive team to drive MGP into the next phase of growth and emerge even stronger as a leading player in the branded spirits industry.”

One of the largest US distillers, MGPI offers a lineup of spirits including bourbon and rye whiskeys, gins and vodkas. Its roster of food ingredients includes fibers, starches, proteins and textured proteins for product categories such as bakery, cereal, snacks, pasta and noodles, batters/breadings/coatings, gravy, sauces, soup, nutritional bars, instant drinks, dairy, flavorings and vegetarian, as well as processed meat, poultry and seafood.

“After a tumultuous 12-month tenure, David Bratcher will step down from the president and CEO role,” TD Cowen analyst Robert Moskow said in a Dec. 20 research note. “CFO Brandon Gall will serve as interim president and CEO. Donn Lux will become chairman of the board and lead the search for a permanent CEO. We believe these were necessary steps to help re-establish investor confidence but still view MGPI’s branded spirits transformation as a ‘show me’ story.”

At the end of October, MGPI said fiscal 2024 third-quarter consolidated sales dropped 24% and were down 14% excluding the impact of the Atchison distillery closing at the end of 2023. Net income climbed 82% but fell 5% on an adjusted basis, while adjusted EBITDA decreased 9%. Two weeks before, MGPI had disclosed the expected quarterly results in a preliminary report.

Also, news of an investor class-action suit against MGPI emerged on Dec. 18, less than two days before the company announced the leadership changes. In the suit, investors claim they were misled about MGPI’s supply and demand and its sales performance.