Jim Beam has announced a temporary pause in production at its main distillery in Kentucky in 2026, citing a decline in whiskey and bourbon consumption. The decision to halt production at the Clermont, Kentucky plant was made after assessing consumer demand and volumes for the year. While the main distillery is pausing production, Jim Beam will continue operations at its craft distilleries in Boston, Kentucky, and a small batch facility in Clermont.
The one-year pause will be used to make enhancements to the property, with the visitor center, bottling, and warehousing units remaining operational. Suntory, the brand’s owner, is currently working with union leadership to determine how to utilize the workforce during the transition period.
The announcement comes amidst a trend of declining alcohol consumption, leading to plant closures and layoffs in the spirits industry. Jack Daniel’s owner, Brown-Forman, recently closed its bourbon cooperage in Louisville, Kentucky, resulting in 640 job layoffs. Diageo also paused production at Balcones and George Dickel distilleries in Texas and Tennessee.
Kentucky’s bourbon industry is facing challenges with a record amount of aging bourbon in storage, estimated at 16.1 million barrels. Distillers are exploring trade negotiations with countries like Canada and Ireland to offload some of the product, as exports have been impacted by recent White House policies.