Jim Beam will halt production at its primary distillery in Kentucky for the entirety of next year as the company reassesses output levels and invests in upgrades at the site, the bourbon maker said in a statement on Sunday.
Production Pause And Site Investment
The maker of Jim Beam said the distillery will remain closed during 2026 while the company takes the opportunity to carry out site enhancements. The firm said it regularly reviews production levels to align with consumer demand and recently held discussions with employees about projected volumes for next year.
The company did not provide details on the specific upgrades planned for the facility.
Impact On Kentucky Operations And Workforce
Jim Beam is owned by Suntory Global Spirits, which employs more than 1,000 people across its Kentucky operations. The company said its other facilities in the state will continue operating in 2026, including a separate distillery as well as bottling and warehousing plants. Its Kentucky visitor centre will also remain open.
The company said it is evaluating how to deploy its workforce during the production pause and is in discussions with the workers’ union regarding staffing arrangements.
Industry Oversupply And Warehouse Pressures
The pause comes as bourbon producers in Kentucky face a period of oversupply. In October, the Kentucky Distillers’ Association said bourbon inventories in the state had reached a record level of more than 16 million barrels.
According to the association, the barrels, which are subject to state taxation, have cost distillers an estimated $75 million this year. The group said rapid expansion over the past decade was largely driven by expectations of rising global demand.
Trade Policy And Export Challenges
Kentucky distillers are also dealing with trade uncertainty linked to US trade policy. The KDA said US producers have been affected by retaliatory import taxes imposed after tariff measures announced by Donald Trump in April, which applied to most countries.
The association has previously called for a return to reciprocal, tariff-free trade, citing the impact of trade barriers on overseas sales.
Trade tensions with Canada have also weighed on demand. Earlier this year, most Canadian provinces introduced boycotts of American spirits, further affecting export volumes.
Outlook For Production
Jim Beam did not indicate whether the Kentucky distillery would resume production immediately after 2026. The company said it continues to assess market conditions as it plans future output.
Featured image credits: Goodfon
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