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MGP Ingredients, Inc..

MGPI.US | Distilling, rectifying and blending of spirits

MGP Ingredients, Inc. is a supplier of distilled spirits and specialty wheat proteins and starches. The company operates through two segments: Distillery Products and Ingredient Solutions. The Distillery Products segment produces and supplies various distilled spirits, including bourbon and rye whis...Show More

Ethical Profile

Mixed.

Is MGP Ingredients ethical? The company's core business, with $705 million of its $837 million 2023 revenue from alcoholic beverages, is linked to potential health harms. Environmental concerns include a $1 million fine for a chlorine gas release and over $3.7 million in past safety and environmental penalties. On worker respect, critics point to a 55:1 CEO-to-median pay ratio in 2023 and a 2008 work stoppage, though MGP plans to reach 75% living wages within two years. Positively, the company achieved a 52% reduction in Scope 1 and 2 emissions from 2022 to 2024, targeting 50% by 2027. However, reports suggest low overall waste diversion rates, at 4.6% in 2024, despite initiatives to reduce plastics.

Value Scores

Better Health for All-70
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect0
-100100
Fair Trade & Ethical Sourcing-40
-100100
Honest & Fair Business0
-100100
Kind to Animals-50
-100100
No War, No Weapons0
-100100
Planet-Friendly Business-60
-100100
Respect for Cultures & Communities20
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products-30
-100100

Better Health for All

-70

In 2023, approximately 84.2% of MGP Ingredients' revenue ($705M out of $837M) was derived from distilled spirits, which have well-established negative health outcomes.

1
Conversely, about 15.8% of revenue ($132M) came from Ingredient Solutions, which include products designed to improve health through increased fiber and protein, and reduced sodium.
2
The company's core business heavily relies on products with significant negative health impacts, placing its net health effect and harmful revenue share in the -90 tier. While the Ingredient Solutions segment focuses on improving nutritional value and food safety,
3
the overall product portfolio remains predominantly unhealthy due to the dominance of alcoholic beverages. There is no evidence of specific addiction mitigation efforts for its primary product line,
4
which inherently carries addiction potential, leading to a -90 score for addiction mitigation.

Fair Money & Economic Opportunity

0

MGP Ingredients, Inc. is a supplier of distilled spirits and specialty wheat proteins and starches.

1
The company's core business does not involve offering lending, deposit, or other financial services to consumers.
2
Therefore, all KPIs related to financial products, pricing, fees, customer financial outcomes, and financial inclusion initiatives are not applicable. The company does not generate or manage customer finance data, nor is it regulated as a lender.
3
While the company makes community contributions, these are not identified as specific community finance reinvestment or profit-sharing with underserved communities in the context of financial inclusion.
4

Fair Pay & Worker Respect

0

In 2024, the CEO-to-median employee pay ratio was 17:1.

1
The company has incurred multiple workplace safety or health violations, with penalties totaling $177,209 between 2000 and the present.
2

Fair Trade & Ethical Sourcing

-40

MGP Ingredients reported no incidents of forced or child labor.

1
The company tracks raw material lots for all sourced ingredients, enabling traceability to the source supplier (Tier 1).
2
MGP adopted a Vendor Code of Conduct, effective November 20, 2023, which sets forth expectations for suppliers to comply with anti-corruption laws, respect human rights, and not discriminate.
3
This Vendor Code of Conduct is communicated to and acknowledged by 100% of employees annually.

Honest & Fair Business

0

No specific, concrete data points were found in the provided articles to assess MGPI.US against any of the 'Honest & Fair Business' KPIs. All articles explicitly stated a lack of relevant information for the company or the ethical value, or were inaccessible.

1

Kind to Animals

-50

MGP Ingredients, through its Yellowstone Bourbon brand, donated $250,000 annually to the National Parks Conservation Association, protecting 600,000 acres.

1
This represents approximately 0.0355% of its 2024 revenue. The company produces distillers’ feed as a co-product for livestock rations and also manufactures plant-based meat alternative ingredients, including TruTex textured wheat protein for meat extension and vegan/vegetarian applications, and Arise® wheat starches and proteins that can replace eggs in baked goods and pastas.
2
MGP is advancing its investment in Proterra Proteins, a plant-based meat alternative.
3
The company has worked with several public and private organizations, including universities and clinical research firms, on clinical studies for Fibersym.
4

No War, No Weapons

0

The company's core business is the production and sale of distilled spirits and specialty wheat proteins and starches.

1
There is no evidence in the provided articles to suggest any involvement in arms manufacturing, military contracts, dual-use technologies, sales to embargoed regimes, or any other defense-related activities. Therefore, KPIs related to these areas are scored as N/A (0). The company has a Human Rights Policy and a Vendor Code of Conduct that requires suppliers to respect human rights, but there is no explicit mention or evidence of alignment with the UN Guiding Principles on Business and Human Rights, nor specific human rights due diligence frequency in conflict-affected areas.
2
For conflict minerals, the company uses tungsten in storage barrel hoops and, for the year ended December 31, 2019, was unable to determine if it originated from conflict-affected regions, concluding it was 'DRC conflict undeterminable'.
3
However, no percentage of the overall supply chain certified conflict-free is provided, leading to the omission of this KPI.
4

Planet-Friendly Business

-60

In 2024, the company's total Scope 1 and 2 emissions were 173,236 metric tons CO2e, representing a 52% reduction from 2022.

1
Scope 3 emissions are not reported, but a materiality assessment is underway.
2
The company has committed to a 50% absolute reduction in Scope 1 and 2 emissions by 2027, using 2022 as the baseline, and has committed to SBTi but validation is pending.
3
MGP committed to sourcing 100% of its electricity needs from renewable wind power starting April 1, 2018, for a three-year renewable agreement.
4
Several sites achieved a near 90% landfill diversion rate in 2024.
5
The Bardstown distillery earned EPA Energy Star certification.
6
The company was fined $1 million for a chlorine gas release.
7
No net-zero target year is explicitly stated.
8

Respect for Cultures & Communities

20

MGP Ingredients was the largest corporate sponsor of the National Parks Conservation Association (NPCA) at the $250,000 level in 2023, contributing nearly $500,000 over six years.

1
This demonstrates active protection measures for cultural sites. In 2023, the $250,000 donation to NPCA represents approximately 0.0278% of the company's $900 million revenue, which falls below the 0.5% threshold for specific cultural heritage giving.
2

Safe & Smart Tech

0

The company has reported no specific data breach incidents or material impacts from cybersecurity threats in the last three fiscal years.

1
Additionally, there have been no substantiated complaints regarding customer privacy breaches or incidents of unauthorized data use.
2
The company mentions employee training and phishing simulations as part of its cybersecurity risk management.
3
Data encryption is also mentioned as a security measure, but no details on its scope or strength are provided.
4
The company states it performs system testing, patching, continuous monitoring, and penetration testing for vulnerability management and security testing, but no specific metrics on frequency, coverage, or remediation times are available.
5
The company also states compliance with GDPR and the California Online Privacy Protection Act (CalOPPA).
6

Zero Waste & Sustainable Products

-30

In 2024, MGP Ingredients diverted 95.43% of its non-hazardous waste from disposal.

1
The company has a goal to certify one or more sites as zero waste facilities (90% or more diversion) by 2027 and is formulating a plan to reach a 90% landfill diversion rate.
2
MGP eliminated all styrofoam and single-use plastics at its facilities in 2018, replacing them with compostable and biodegradable alternatives.
3
The company's Terratek® SC product contains up to 65% renewable material, and Terratek® WC uses wood particles from woodworking industry waste.
4
MGP states that 98.5% of all raw materials used are returned in forms with viable commercial applications.
5
The majority of packaging for beverage alcohol products is glass bottles and for food ingredients is paper bags, both of which are recyclable.
6
MGP discontinued poly-lined plastic bags in food ingredient packaging in early 2023 and increased bulk deliveries for Ingredient Solutions products by 1,500% since 2011.
7
The company's environmental management system is reviewed annually.
8
MGP was fined $1 million in 2016 for negligently violating the Clean Air Act due to a chlorine gas release at its Atchison, Kansas facility.
9

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.