Bourbon Maker Jim Beam Halts Production At Main Distillery For A Year

Kentucky's iconic bourbon producer, Jim Beam, is temporarily halting production at its main distillery in Clermont for all of 2026. It comes as Kentucky faces uncertainty around President Donald Trump's trade wars and the increasing supply of ageing barrels.

In a statement, the company said it will close its Clermont distillery until it takes the "opportunity to invest in site enhancements."

In October, the Kentucky Distillers' Association said there was a record amount of bourbon in its warehouses – 16.1 million ageing barrels of bourbon. In 2025, Kentucky distillers paid $75 million in ageing barrel taxes, a 27 per cent jump from 2024, reported CNN.

The pause in production at its main distillery on the James B. Beam campus will allow it to invest in "site enhancements", while continuing distillation at its Fred B. Noe craft distillery in Clermont and Booker Noe distillery in Boston.

“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026,” the company said in the statement.

Bottling and warehousing operations will remain unaffected in Clermont. Jim Beam will continue to consult with employees represented by the United Food and Commercial Workers union as it considers the impact on its staff.

Suntory Global Spirits has not announced any layoffs. The company claims it employs over 1,000 individuals at its Kentucky locations. Owned by the Japanese drinks group Suntory Global Spirits, Jim Beam employs over 6,000 people worldwide.

Suntory is well known for its single malt whiskies, but it also produces Haku vodka, Sipsmith gin, and soft beverages Orangina and Lucozade. It paid $16 billion to acquire the US maker of Jim Beam in 2014, solidifying its position as one of the world's largest spirits producers.

Whiskey and spirits producers have had to contend with retaliatory tariffs owing to the strict measures announced by Trump, as well as customers cutting on discretionary spending due to an affordability crisis.

The trade war between the US and Canada has led to a ban on American spirits in some Canadian provinces, while the EU initially threatened to increase tariffs on US whiskey to 50% before announcing a six-month suspension of retaliatory tariffs on US imports.

In October, Eric Gregory, president of the Kentucky Distillers' Association, emphasised the importance of stability, saying, "Long-term planning for a product that won't be ready for years is already tough enough. We need the certainty of tariff-free trade for America's only native spirit to flourish."

Suntory reported a 2.4% fall in alcohol sales in the first half of 2025, following a dip in demand in the United States and Europe.