Jim Beam to Halt Production in Kentucky Distillery Throughout 2026 Amid Tariff Uncertainty and Industry Challenges
Jim Beam will halt production at its Clermont, Kentucky distillery for the entirety of 2026, although other Kentucky operations and the visitor centre will remain open. The pause aims to allow for site enhancements, and discussions about 2026 production volumes are ongoing with the workforce and the union.
This decision comes amid tariff uncertainty under former President Donald Trump and declining alcohol consumption, which have affected US whiskey distillers. In October, the Kentucky Distillers’ Association reported more than 16 million bourbon barrels were stored in Kentucky warehouses and warned that this year about $75 million in taxes would be incurred on ageing inventory.
Jim Beam is owned by Suntory Global Spirits, which acquired the brand in 2014 for $16 billion. Suntory employs over 6,000 people globally, including more than 1,000 in Kentucky. In related news, Suntory CEO Takeshi Niinami resigned in September after police raided his home as part of an investigation into suspected illegal supplements; Niinami denies any wrongdoing.
