Jim Beam, the maker of the popular bourbon whiskey, will reportedly pause production at its main Kentucky distillery for all of 2026.
In a statement to the BBC on Sunday, the firm said the shutdown will allow it to “take the opportunity to invest in site enhancements.” It added, “We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026.”
The distillery, located in Clermont, will cease production from January 1, 2026. However, the visitor centre will remain open, and other operations in Kentucky — including a separate distillery, bottling, and warehousing plants — will continue to operate.
“We’ve shared with our teams that while we will continue to distill at our [Freddie Booker Noe] craft distillery in Clermont and at our larger Booker Noe distillery in Boston, we plan to pause distillation at our main distillery on the James B. Beam campus for 2026 while we take the opportunity to invest in site enhancements,” the company said in a statement as reported by the Lexington Herald Leader.
Jim Beam is owned by Japanese drinks giant Suntory Global Spirits, which employs over 1,000 people across its Kentucky sites.
The company is also evaluating how to deploy its workforce during the production pause and is in discussions with the workers’ union.
Kentucky distillers have been affected by US trade policies under President Donald Trump. Retaliatory tariffs, including a Canadian boycott of American spirits, have contributed to a decline in US liquor sales.
The Kentucky Distillers’ Association (KDA) has highlighted the industry’s struggles with an oversupply of bourbon.
In October, it reported that warehouses across the state held a record 16 million barrels, costing distillers an estimated $75 million in taxes.
“Much of the expansion over the last decade has been geared towards global growth,” the KDA said, calling for a “speedy return to reciprocal, tariff-free trade.”
The state’s $9 billion bourbon industry has been grappling with abundant supply amid falling demand, particularly as younger consumers cut back on drinking.
Trade tensions between the US and Canada earlier this year also led to widespread boycotts of American spirits in Canadian provinces, further impacting sales.