Jim Beam to Halt Production at Kentucky Distillery for 2026 Amid Tariff Uncertainty and Industry Challenges
Jim Beam announced it will halt production at its Clermont, Kentucky distillery for the entire year of 2026 to allow for site enhancements. Despite this pause, other Kentucky operations—including another distillery, bottling and warehouse plants—will remain open, and the visitor centre will continue operating.
The company is currently assessing how to utilize its workforce during this production pause and is in ongoing discussions with its workers' union.
This decision comes amid ongoing tariff uncertainty related to U.S. trade policy under former President Donald Trump, coupled with broader declines in alcohol consumption. The Kentucky Distillers’ Association (KDA) reported record bourbon stockpiles in warehouses as of October, exceeding 16 million barrels. The KDA also cautioned that distillers face approximately $75 million in taxes on ageing inventory this year.
Jim Beam is owned by Suntory Global Spirits, which acquired the brand in 2014 for $16 billion. The company employs more than 1,000 people across its Kentucky facilities.
