Jim Beam to halt production at Clermont Kentucky distillery for 2026 amid tariff uncertainty
Jim Beam will halt production at its Clermont, Kentucky distillery for all of 2026 to invest in site enhancements. Despite this pause, other Kentucky operations, including another distillery as well as bottling and warehouse plants, will remain open along with the visitor centre.
The move follows ongoing tariff uncertainty affecting US whiskey makers amid Trump-era tariffs. The company is currently assessing production volumes for 2026 and is in talks with its workers' union regarding the situation.
In October, the Kentucky Distillers' Association (KDA) reported Kentucky had a record inventory of over 16 million bourbon barrels in warehouses. The KDA has also warned that distillers face approximately $75 million in taxes this year on ageing barrel inventory due to Kentucky's ageing-barrel tax.
Jim Beam is owned by Suntory Global Spirits, which acquired the brand in 2014 for $16 billion. Suntory employs more than 6,000 people globally, including over 1,000 in Kentucky.
This announcement highlights broader pressures the US spirits industry is facing from tariffs and shifting demand patterns.
