Jim Beam has paused production at its largest distillery—located in Clermont, Kentucky—for a year from 1 January 2026.
Suntory Holdings, the bourbon’s parent brand, shared a statement that said: “We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026.
“We’ve shared with our teams that while we will continue to distil at our [Freddie Booker Noe] craft distillery in Clermont and at our larger Booker Noe distillery in Boston, we plan to pause distillation at our main distillery on the James B. Beam campus for 2026 while we take the opportunity to invest in site enhancements.”
The company said it was assessing “how best to utilise our workforce during this transition” and was in discussions with the union.
The visitors centre on site (pictured main) will remain open for Kentucky Bourbon Trail visitors.
The move comes as Kentucky’s $9 billion bourbon industry battles a whiskey glut and and falling demand.
They’re not alone – it has been a tough year for both the American whiskey industry and Scottish distillers. Many distilleries have paused production, while others have closed permanently.
Among the contributing factors are cost of living issues, tariffs and moderation.
Earlier this year, numbers from the Treasury Department showed that whiskey distillers had produced 28% less product than the same period last year, the lowest total since 2018.
A record high percentage of US adults (53%) said moderate drinking is bad for their health, up from 28% in 2015, according to a Gallup poll published in August.
The survey found that 54% of US adults said they drink alcoholic beverages such as liquor, wine or beer, which is lower than at any other point in the past three decades.
Tariffs take their toll
Tariffs have contributed to falling revenue across the industry, with 21,000 US hospitality industry supporters signing a petition earlier this month to President Trump urging the removal of tariffs on EU and UK spirits and wine.
This marks the second tariff petition sent to the President in the past six months.
The petition warned, “If the 15% tariff on EU spirits and wines and the 10% tariff on UK spirits continues, the consequences will be severe. U.S. restaurants and bars, already battling rising costs and declining wine and spirits sales, will be hit with another blow that could trigger even more job losses, reduce consumer choice and stall economic activity across the country.”
The signers emphasised that a permanent return to fair and reciprocal trade protects the US wine and spirits sectors, which contribute over $476 billion in annual economic activity and support more than 3.5 million jobs.
Members of the Toasts Not Tariffs Coalition, a group of 57 associations representing the entire three-tier chain of the US alcohol industry and related sectors, mobilised members and partners nationwide to amplify the petition and voice concerns over the risks of retaliatory tariffs on U.S. wine and spirits exports.
The petition highlighted the damaging impact of retaliatory tariffs, noting that when the EU imposed a 25% retaliatory tariff on American whiskies from 2018 to 2021, exports to the EU plunged by 20%.
While the EU’s retaliatory tariff on US beverage alcohol products is currently suspended, American distillers and vintners face uncertainty with the looming threat of a 30% EU retaliatory tariff in February 2026. This escalation could force craft distilleries and wineries to close, devastating local communities across the country.
The signers stressed, “The hospitality industry, which includes restaurants, bars, retail stores, etc. is not just a sector. It’s a cornerstone of American life. It employs millions of Americans, generates trillions in annual revenue, and helps communities connect. Spirits and wines are more than commodities; they are cultural ambassadors. They are unique products, often tied to specific geographical regions. Production of these products cannot simply be relocated to circumvent the tariffs.”