Suntory Global Spirits-owned Jim Beam will halt bourbon production at its main distillery in Clermont, Kentucky, for the entirety of 2026. The company cited the need to manage production levels against consumer demand and to invest in site enhancements during the one-year pause, which is scheduled to begin on January 1, 2026.
“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026,” the company said in a statement.
The statement continued: “We’ve shared with our teams that while we will continue to distill 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.”
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READ THE STORYThe decision comes as Kentucky’s $9 billion bourbon industry manages an abundant supply amid shifting demand.
Regarding its workforce, the company said it was assessing “how best to utilize our workforce during this transition” and confirmed it was in discussions with the union, according to Kentucky.com.
The production pause follows a period of trade tension that has impacted American spirits exports throughout 2025, owing to President Donald Trump’s ongoing trade disputes. The trade dispute with Canada has been particularly detrimental to the American spirits industry.
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According to the Distilled Spirits Council of the United States (DISCUS), exports to Canada “plummeted 85%”, falling below the $10 million mark in the second quarter of 2025.
In October, following the American Distilled Spirits Exports 2025 Mid-Year Report, Chris Swonger, CEO of DISCUS, commented on the challenges facing the sector.
“After celebrating a record year for U.S. spirits exports in 2024, this new data is very troubling for U.S. distillers,” Swonger said. “Persistent trade tensions are having an immediate and adverse effect on U.S. spirits exports.”
He noted a growing concern that international consumers are “increasingly opting for domestically produced spirits or imports from countries other than the U.S., signaling a shift away from our great American spirits brands.”
Swonger added: “We urge the President to help facilitate a lasting return to tariff-free trade with our longstanding trading partners to ensure the continued growth and vitality of this great industry.”
As reported by The Independent, Canadian PM Mark Carney has said that formal trade talks between the U.S. and Canada will commence in January 2026.
