Jim Beam to Halt Production at Kentucky Distillery for 2026 Amid Tariff Uncertainty and Declining Demand
Jim Beam will halt production at its Clermont, Kentucky distillery for the entirety of 2026. However, other Kentucky operations and the visitor centre will remain open during this period. The pause in production is intended to allow the company to invest in site enhancements and better align production volumes with current demand. The exact production volumes for 2026 are currently under review, and discussions regarding workforce needs are set to take place with the workers’ union.
This decision is driven by broader tariff uncertainties impacting US whiskey exports as well as a general decline in alcohol consumption. In October, the Kentucky Distillers’ Association reported a record bourbon inventory across the state, totaling more than 16 million barrels. The association also highlighted concerns over approximately $75 million in taxes on ageing inventory to be incurred this year.
Jim Beam is owned by Suntory Global Spirits, which acquired the brand in 2014 for $16 billion. Suntory employs over 6,000 people worldwide, with more than 1,000 based in Kentucky.
