Bourbon maker Jim Beam halts production at main distillery for a year

Tuesday, December 23, 2025 -Jim Beam, one of the most iconic American bourbon producers, announced it will temporarily pause production at its main Clermont, Kentucky distillery throughout 2026. 

The company says the pause will allow it to invest in site improvements and better align output with current consumer demand. While distillation at this flagship facility will stop, the bourbon maker will keep its visitor center, bottling, and warehousing operations open, and continue production at its smaller craft distilleries elsewhere in Kentucky.

The decision reflects broader challenges facing the bourbon industry, including a surplus of aging barrels and weakening demand both domestically and internationally. 

Kentucky now has a record volume of bourbon sitting in warehouses, and exports of U.S. spirits have fallen sharply, driven in part by trade tensions and tariff disputes that have made American whiskey less competitive in key markets. Jim Beam says it is consulting with its union and staff as it determines how best to manage its workforce during the pause, and no layoffs have been announced so far.

Industry analysts view the temporary shutdown as a signal that even major brands are recalibrating in response to changing market conditions. With Americans drinking less overall and export markets under pressure, distillers are adjusting production strategies to avoid oversupply and position themselves for future demand. 

For bourbon fans and the Kentucky economy, the halt at Jim Beam’s main distillery underscores how structural shifts in consumer habits and global trade are reshaping an industry once defined by relentless growth.