The maker of Jim Beam bourbon will halt production at its main Kentucky distillery throughout next year. The company confirmed the site will remain closed for all of 2026. Management described the pause as a chance to invest in improvements at the facility.
The company said it regularly reviews production levels to match consumer demand. Executives recently met staff to discuss planned volumes for 2026. The decision followed internal assessments of supply and demand trends.
Investment pause comes amid growing uncertainty
The distillery will stay shut while the firm carries out site enhancements. Company representatives explained the closure allows focused investment without disrupting active production. They framed the move as part of long-term planning rather than a retreat.
Bourbon producers in Kentucky face rising uncertainty across the sector. Industry leaders cite pressure linked partly to US President Donald Trump’s trade policies. These measures have affected exports and future growth expectations.
Other Kentucky operations continue running
Jim Beam belongs to Japanese drinks group Suntory Global Spirits. The company employs more than 1,000 people across several Kentucky sites. Management said other state operations will continue next year.
These include a separate distillery plus bottling and warehousing facilities. The Kentucky visitor centre will also remain open during the production pause. The company stressed that activity across the state will not stop entirely.
Workforce discussions and union talks underway
Jim Beam said it is reviewing how it will deploy its workforce during the shutdown. Management has begun discussions with the workers’ union. The company said it aims to handle the pause responsibly.
No final decisions on staffing arrangements have been announced. Talks remain ongoing as planning for next year continues. The firm did not specify how many roles could be affected.
Bourbon stockpiles reach record levels
In October, the Kentucky Distillers’ Association reported record bourbon stock levels statewide. Warehouses held more than 16 million barrels at that point. The association said this marked an all-time high.
According to the group, state taxes on these barrels created heavy costs. Distillers paid about $75m, or £56m, this year. The association described the financial burden as crushing.
Trade tensions weigh on global ambitions
US distillers have faced retaliatory import taxes on their products. These followed Trump’s “Liberation Day” announcement in April, which imposed tariffs on most countries. The measures triggered counteractions abroad.
The distillers’ association said recent expansion targeted global growth. It called for a speedy return to reciprocal, tariff-free trade. Leaders warned prolonged barriers could damage long-term prospects.
Trade tensions with Canada have also hit alcohol sales. Most Canadian provinces boycotted American spirits earlier this year. The move further strained export markets for US whiskey makers.
