Jim Beam distillery ceases production for 2026
Suntory Global Spirits-owned James B Beam distillery in Clermont, Kentucky, will pause production from 1 January to the end of 2026.
The distillery is one of the largest Bourbon producers in Kentucky and home to Jim Beam, the best-selling world whisky brand according to the Brand Champions 2024.
According to an official statement, the pause is part of the company’s constant “assessment of production levels to best meet consumer demand”, following “a team meeting to discuss volumes for 2026.”
Furthermore, the production halt at the company’s largest distillery will be implemented to “take the opportunity to invest in site enhancements”.
The distillery will continue to welcome Kentucky Bourbon Trail guests to its visitor centre and The Kitchen Table restaurant. The distillery experience reportedly hosts more than 100,000 guests annually.
The site will also continue to operate its bottling and warehousing functions.
Suntory Global Spirits said it will continue to operate its two other distilleries in Kentucky: Freddie Booker Noe in Clermont and Booker Noe Distillery in Boston.
So far, the company has not filed for any layoffs, which would affect nearly 1,500 workers in the state, according to 2024 data.
The Spirits Business has reached out to Suntory Global Spirits for a comment.
In addition to Jim Beam, the James B Beam distillery produces more than 10 whiskey brands, including Knob Creek, Booker’s, Baker’s, Basil Hayden, and Old Grand-Dad.
Hard period for US spirits
The announcement follows data released by the Treasury Department showing that whiskey distillers had produced just under 142 million proof gallons through August, a decrease of 55 million proof gallons from the same period last year.
According to the Kentucky Distillers’ Association, the state currently has a record high of 16.1 million ageing barrels of Bourbon in its warehouses.
Kentucky distillers pay tax on ageing barrels of spirits. In 2025, this tax will amount to US$75 million: a 27% increase from 2024 and a staggering 163% increase over the past five years.
This year, American whiskey exports have taken a hit, particularly to some of its largest markets. Canada has boycotted US spirits since March in retaliation against president Trump’s tariffs.
For the first six months of 2025, Suntory reported a 2.4% decline in sales for its alcohol business, as demand fell in the US and Europe.
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