Jim Beam to Halt Kentucky Distillery Production Throughout 2026 for Site Enhancements
Jim Beam has announced it will pause production at its main Kentucky distillery for the entire year of 2026 to carry out site enhancements, resulting in the distillery's closure during this period. Despite this halt, other Kentucky operations, including a separate distillery as well as bottling and warehousing plants, will continue to operate, and the visitor centre will remain open.
The company is currently evaluating how to allocate its workforce during the production pause and is engaged in discussions with the workers' union. Owned by Suntory Global Spirits, a Japanese drinks group, Jim Beam employs more than 1,000 people across its Kentucky sites.
This decision comes amid broader uncertainties faced by Kentucky distillers linked to U.S. trade policies under President Trump, including tariffs that have affected exports. In October, the Kentucky Distillers' Association reported that bourbon stocks in state warehouses exceeded 16 million barrels, and that tariffs have cost distillers approximately $75 million this year.
The KDA has urged for a prompt return to reciprocal, tariff-free trade, noting that recent growth efforts have targeted global markets. Trade tensions with Canada have also impacted U.S. spirits sales, as several Canadian provinces enacted boycotts on American spirits earlier in the year.
