Jim Beam to Halt Kentucky Distillery Production Throughout 2026 Amid Trade Tensions
Jim Beam will halt production at its main Kentucky distillery for the entirety of 2026, with the site closed during that year to allow for site enhancements. However, other Kentucky operations, including a separate distillery and bottling and warehousing plants, will continue to operate, and the visitor centre will remain open.
The bourbon producer, owned by Japan's Suntory Global Spirits, which employs more than 1,000 people across Kentucky sites, is currently evaluating production levels and will discuss 2026 volumes with the workers' union. Plans for staff utilization during the production pause are being explored.
The Kentucky Distillers' Association reported a record stockpile of bourbon in state warehouses as of October, exceeding 16 million barrels. State taxes on bourbon barrels have imposed approximately $75 million in costs on distillers this year.
US distillers, including Jim Beam, are facing retaliatory import taxes following former President Trump's Liberation Day announcement in April, which has affected bourbon trade. The Kentucky Distillers' Association has called for a swift return to reciprocal, tariff-free trade, highlighting that trade tensions with Canada have impacted alcohol sales, as many Canadian provinces continue to boycott US spirits.
