Jim Beam, one of the world's best-known bourbon whiskey brands, announced it will halt whiskey production at its main distillery in Clermont, Kentucky, for all of 2026.
In an official statement obtained by AP News , Jim Beam's parent company Suntory Global Spirits Inc. cited slowing demand for bourbon, a significant increase in aged inventory and ongoing trade pressures as the cause for pause production at the Clermont campus beginning Jan. 1, 2026.
The 225-year-old whiskey maker said the decision will allow the brand to spend more time investing into the distillery itself and making improvements to the facility.
While whiskey production at the Clermont facility is suspended for 2026, the bottling and warehouse operations, visitors center and restaurant will remain open.
The company also said it plans to work with its union partners on workforce plans during the suspension and anticipates no layoffs will occur as a result of the suspension.
Canadian retaliation to alcohol tariffs
This decision comes amid broader shifts in the bourbon industry.
According to the Distilled Spirits Council of the United States, in the second quarter of 2025, all exports of American spirits dropped 9% compared to the same time last year.
The largest decline came from U.S. exports to Canada — falling 85% from April to June.
"Canada is the only trading partner to retaliate against U.S. spirits. Exports to Canada plunged by 85%, dropping below $10 million in the second quarter of 2025," the Council wrote in its Q2 report.
"... Exports of several spirits categories posted double-digit declines, including Brandy (-12%), American Whiskey (-13%), Vodka (-14%), and Cordials (-15%), while exports of Rum declined 6%."
More Business News
-
Judge finds protesters 'not responsible' for actions at Northampton defense contractor
-
'Smells like doughnuts all the time': Mass. residents complain about Dunkin' plant
-
Walmart recall: Check your fridge, cabinets and kitchen for these 4 products
-
After years of closures, Central Mass. mall is sold to new owners
Read the original article on MassLive . Add MassLive as a Preferred Source by clicking here .
