Jim Beam will suspend production at its main Kentucky distillery for the full next year. The company confirmed the shutdown will last through 2026. Executives said the move follows a review of demand and production capacity.
Management said it routinely adjusts output to match consumer demand. Leaders recently met staff to discuss projected production volumes for 2026. That assessment led to the decision to pause production.
Distillery closure allows for upgrades and improvements
The distillery will remain closed while the company carries out major site enhancements. Executives said the pause allows work without disrupting other operations. Management described the decision as a strategic long-term investment.
Leaders emphasized the shutdown does not indicate declining confidence. The company continues to plan for future growth. Executives framed the pause as disciplined capacity management.
Kentucky bourbon makers navigate uncertainty
Bourbon producers across Kentucky face rising uncertainty. Global trade tensions have complicated planning across the sector. US President Donald Trump’s trade policies have added further pressure.
Producers have reassessed export strategies and investment plans. Tariff disputes have shifted demand forecasts. The sector now operates in a more volatile business environment.
Other Jim Beam operations continue
Jim Beam operates under Japanese drinks group Suntory Global Spirits. The company employs more than 1,000 people across Kentucky. Management said most operations will continue next year.
A separate distillery will remain active during the pause. Bottling and warehousing facilities will continue running. The Kentucky visitor centre will remain open to visitors.
Union talks address workforce planning
Jim Beam said it is assessing how to deploy staff during the production pause. Management has started discussions with the workers’ union. Executives said they aim to manage the shutdown responsibly.
The company has not announced final staffing decisions. Talks will continue as planning advances. Leaders did not outline potential job impacts.
Bourbon inventories hit record levels
In October, the Kentucky Distillers’ Association reported record bourbon stockpiles. Warehouses across the state held more than 16 million barrels. The total marked an all-time high.
The association said state taxes on stored barrels imposed heavy costs. Distillers paid about $75m, or £56m, this year. Industry leaders described the financial burden as severe.
Tariffs and boycotts impact global sales
US distillers have faced retaliatory import taxes in foreign markets. These followed tariff measures announced in April. Trading partners responded with countermeasures.
Industry leaders said recent expansion focused on global growth. They called for a return to reciprocal, tariff-free trade. Canadian provincial boycotts of US spirits earlier this year also reduced sales.
