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Jim Beam will cease production at its Kentucky distillery in 2026 as whiskey and bourbon makers struggle with declining consumption, a company spokeswoman said Monday.
In a statement to Food Dive, a spokesperson said the decision to temporarily suspend production at the Clermont, Kentucky plant was made after the Suntory-owned brand assessed consumer demand and volumes for 2026. Jim Beam will continue to operate a craft distillery in Boston, Kentucky, and another small batch facility in Clermont.
Jim Beam will use the one-year hiatus to make improvements to the property. The on-site visitor center and bottling and warehouse facilities will remain open. Suntory is still consulting with union leadership to determine how to utilize its workforce during the transition period.
The news comes as follows reduced alcohol consumption Force the largest alcohol producers to close factories or lay off workers.
Suntory isn’t the only liquor company making changes amid adverse headwinds in the alcohol sector.
Earlier this year, Brown-Forman, owner of Jack Daniel’s. Bourbon Cooperation Closed It laid off 640 employees in Louisville, Kentucky. Diageo also temporarily halted production at its Balcones and George Dickel distilleries in Texas and Tennessee, respectively.
As consumption declines, Kentucky’s famed bourbon industry is struggling with record amounts of bourbon in storage, according to the Kentucky Distillers’ Association. There are approximately 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 talks with countries including Canada and Ireland to export some of their products. Exports have taken a huge hit in 2025 due to the White House policy. U.S. spirits down 9% Compared to the previous year.
