Jim Beam will suspend production at its main Kentucky distillery for the entire next year. The company confirmed the shutdown will run through 2026. Executives said the move followed a review of demand, supply, and capacity.
Management said it regularly adjusts output to meet consumer demand. Leaders recently met employees to discuss expected production volumes for 2026. That process resulted in the planned pause at the flagship site.
Planned shutdown supports upgrades and efficiency
The company will keep the distillery closed while it completes site improvements. Executives said the pause creates space for focused investment. Management described the decision as strategic and forward-looking.
Leaders said the company continues to plan for long-term growth. They stressed the pause does not reflect declining confidence. The firm framed the move as careful capacity management.
Kentucky bourbon producers face mounting uncertainty
Bourbon makers across Kentucky now operate in a tougher environment. Global trade tensions have disrupted planning across the industry. US President Donald Trump’s trade policies have added further strain.
Producers have reassessed export strategies and investment timelines. Tariff disputes have altered demand forecasts. The sector faces more volatility than in recent years.
Most Kentucky 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 state operations will continue next year.
A separate distillery will remain active during the pause. Bottling and warehousing facilities will keep running. The Kentucky visitor centre will also remain open.
Company reviews staffing during production pause
Jim Beam said it is assessing how to deploy its workforce during the shutdown. Management has begun talks with the workers’ union. Executives said they aim to manage the transition responsibly.
The company has not announced final staffing decisions. Discussions will continue as planning advances. Leaders did not outline potential job impacts.
Bourbon inventories reach historic levels
In October, the Kentucky Distillers’ Association reported record bourbon stockpiles statewide. Warehouses held more than 16 million barrels. The total marked an unprecedented high.
The association said state taxes on stored barrels imposed heavy costs. Distillers paid about $75m, or £56m, this year. Industry leaders warned the burden strains finances.
Tariffs and boycotts pressure overseas sales
US distillers have faced retaliatory import taxes in key markets. These followed tariff measures announced in April. Trading partners responded with countermeasures.
Industry leaders said recent expansion targeted global growth. They called for a return to reciprocal, tariff-free trade. Canadian provincial boycotts of US spirits earlier this year also hurt sales.
