V&S said the closure of the plant, which employs 80 people, would save 35 million kronor a year.
“Having a whole plant running at half speed is far too expensive in the long run,” said Rolf Cassergren, President V&S Distillers.
The plant is focused on making Vin & Sprits traditional Swedish spirits, including Skåne Akvavit, Grönstedts Cognac and Explorer.
V&S said sales of these lines, which are focused on the Swedish market, have fallen after restrictions on private alcohol imports from other EU countries were lifted three years ago.
“When Swedes buy alcohol outside the country they mainly choose the low-price alternatives. This does not benefit our Swedish spirits, which are of high quality, but are also more expensive,” said Cassergren.
V&S said it would now negotiate with unions before coming to a final decision.
V&S is best known as the maker of international market-leading Absolut Vodka.