Jim Beam is pausing production at its main Kentucky distillery in 2026, a company spokesperson said Monday, as whiskey and bourbon makers struggle with a drop in consumption.
The decision to temporarily halt production at the plant in Clermont, Kentucky, was made after the Suntory-owned brand assessed consumer demand and volumes for 2026, a spokesperson said in a statement to Food Dive. Jim Beam will continue to operate its craft distilleries in Boston, Kentucky, and another small batch facility in Clermont.
Jim Beam will use the one-year pause to make enhancements to the property. The site’s visitor center and bottling and warehousing units will remain up and running. Suntory is still determining how to utilize its workforce during the transition in consultation with union leadership.
The news comes as declining alcohol consumption pushes some of the biggest spirit makers to close plants or lay off workers.
Suntory isn’t the only spirits company making changes amid the unfavorable headwinds in the alcohol sector.
Earlier this year, Jack Daniel’s owner Brown-Forman closed its bourbon cooperage in Louisville, Kentucky, and laid off 640 workers. Diageo also temporarily paused production at Balcones and George Dickel distilleries in Texas and Tennessee, respectively.
As consumption declines, Kentucky's famous bourbon industry is grappling with a record amount of aging bourbon in storage, according to the Kentucky Distiller’s Association. There are an estimated 16.1 million barrels of bourbon sitting in aging barrels, most of which will be ready to be bottled around 2030.
Distillers are working to reopen trade negotiations with countries, including Canada and Ireland, to offload some of the product. Exports have been hit hard in 2025 due to White House policies, with shipments of American distilled spirits down 9% compared to the prior year.
