The producer of Jim Beam bourbon has announced plans to suspend production at its main distillery in Kentucky throughout next year, citing a pause to reassess output and carry out upgrades at the facility.
In a statement to the BBC on Sunday, the company said the shutdown would allow it to “take the opportunity to invest in site enhancements” while reviewing production volumes for 2026. The decision follows internal discussions with staff about aligning output more closely with consumer demand.
Jim Beam is owned by Japanese drinks group Suntory Global Spirits, which employs more than 1,000 people across its Kentucky operations. The company said the production halt will not affect its other facilities in the state, including a separate distillery, bottling and warehousing plants, all of which will continue operating. The brand’s visitor centre in Kentucky will also remain open.
The company added that it is in talks with the workers’ union to determine how employees will be deployed during the production pause.
The announcement comes as Kentucky’s bourbon industry grapples with growing stockpiles and trade-related pressures. In October, the Kentucky Distillers’ Association (KDA) reported that bourbon inventories had reached a record high of more than 16 million barrels. The association said state taxes on stored barrels cost distillers about $75m (£56m) this year, describing the burden as “crushing”.
US spirits producers have also been hit by retaliatory tariffs following President Donald Trump’s April “Liberation Day” announcement, which imposed new duties on imports from most countries. The KDA noted that much of the industry’s recent expansion had been driven by expectations of global growth and called for a swift return to reciprocal, tariff-free trade.
Trade tensions with Canada have further weighed on sales, after several Canadian provinces earlier this year introduced boycotts of American spirits in response to US trade measures.
