Bourbon maker Jim Beam to halt production at main distillery for a year

Jim Beam, one of the world's most iconic bourbon whiskey brands, has announced it will halt production at its flagship distillery in Clermont, Kentucky, for all of 2026.

In an official statement, the company said the decision is part of a plan to "invest in site enhancements" and improve operations at the historic facility.

The statement read, "We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026."

The temporary halt comes at a time when the whiskey industry in the US is facing challenges due to trade tariffs introduced by the Trump administration, which have affected exports. At the same time, domestic alcohol consumption has reduced in recent years.

Jim Beam is owned by Suntory Global Spirits, a major Japanese beverage company, which has a significant presence in Kentucky, employing over 1,000 people across its sites in the state and over 6,000 people worldwide.

Jim Beam is assessing how to manage its employees during the production pause. The company is in discussions with the workers' union to either redeploy staff to other operations or possibly adjust work schedules, while avoiding layoffs if possible.

While the main Clermont distillery will halt production in 2026, Suntory clarified that its other facilities in Kentucky will continue to operate as usual, such as a separate distillery, bottling plants and warehousing facilities. Additionally, the visitor centre at the Kentucky site will remain open.

The Kentucky Distillers' Association (KDA) reported that bourbon inventories in the state are at a record high of over 16 million barrels and they had to pay $75 million in taxes on them this year, according to BBC.

The KDA noted that much of the industry’s expansion in the last decade was aimed at selling bourbon internationally. Higher tariffs and trade barriers now threaten the growth strategies of these distillers.

Trade tensions between the US and Canada have also affected bourbon sales. Earlier this year, most Canadian provinces boycotted American spirits, further reducing demand. Suntory reported a 2.4% fall in alcohol sales in the first half of 2025.