Jim Beam will stop production at its main Kentucky distillery for the entire next year. The company confirmed the shutdown will last through all of 2026. Executives said the move follows a review of demand and production capacity.
Management said it regularly adjusts output to match consumer demand. Leaders recently met employees to discuss projected volumes for 2026. That internal assessment led to the decision to pause production.
Shutdown period allows major upgrades
The distillery will remain closed while the company completes site improvements. Executives said the pause allows upgrades without disrupting operations. Management described the decision as a strategic long-term investment.
Leaders stressed the shutdown does not signal declining confidence. The company continues to plan for future growth. Executives framed the pause as disciplined capacity management.
Kentucky bourbon makers face growing uncertainty
Bourbon producers across Kentucky operate under increasing uncertainty. Global trade tensions have complicated planning across the sector. US President Donald Trump’s trade policies have added extra pressure.
Producers have reassessed export strategies and investment plans. Tariff disputes have shifted demand forecasts. The sector now faces a more volatile operating environment.
Other Jim Beam facilities remain operational
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 stay active during the pause. Bottling and warehousing facilities will also keep running. The Kentucky visitor centre will remain open.
Union talks address workforce planning
Jim Beam said it is assessing how to deploy staff during the shutdown. Management has opened discussions with the workers’ union. Executives said they aim to manage the pause responsibly.
The company has not announced final staffing decisions. Talks will continue as planning progresses. Leaders did not specify potential job impacts.
Bourbon inventories reach record highs
In October, the Kentucky Distillers’ Association reported record bourbon stockpiles statewide. Warehouses across the state held more than 16 million barrels. The total marked an unprecedented high.
The association said state taxes on stored barrels created heavy costs. Distillers paid about $75m, or £56m, this year. Industry leaders described the burden as severe.
Tariffs and boycotts weigh on international sales
US distillers have faced retaliatory import taxes overseas. These followed tariff measures announced in April. Trading partners responded with restrictions.
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 reduced sales.
