Pour one out for an iconic American bourbon brand. One of Kentucky’s largest bourbon producers is pausing whiskey production at the end of the year.
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Jim Beam, one of the world’s largest producers of American whiskey, plans to halt production in Clermont, Kentucky, starting January 1, 2026. The pause will continue throughout all of 2026.
“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026,” the bourbon giant explained in a statement, per the Lexington Herald Leader. “We’ve shared with our teams that while we will continue to distill at our (Freddie Booker Noe) craft distillery in Clermont and at our larger Booker Noe distillery in Boston, we plan to pause distillation at our main distillery on the James B. Beam campus for 2026 while we take the opportunity to invest in site enhancements.”
However, the on-site visitors center will remain open for those on the Kentucky Bourbon Trail.
This decision comes as Kentucky’s $9 billion bourbon industry faces a surplus of whiskey and declining domestic demand. According to the Lexington Herald Leader, the industry has reduced production by over 55 million proof gallons, a drop of more than 28% through August, marking the lowest level since 2018.
Bourbon Sales Also Dropped in 2025 Due to Trumps’s Ongoing Trade Wars
Exports to key trading partners have also taken a hit. U.S. whiskey sales to Canada dropped by over 60% through October, driven by a boycott of American spirits in response to President Trump’s trade war. Other Kentucky-based companies, including Jack Daniel’s producer Brown-Forman, have announced layoffs or temporary production pauses this year.
The Clermont distillery is a major production facility in Kentucky. It produces the flagship brands, Basil Hayden, Knob Creek, and others. A company spokesperson confirmed that its larger distillery in Boston, Kentucky, will not be impacted. Both distilleries are operated by Suntory Global Spirits, which also owns Maker’s Mark. According to a Suntory spokesperson, distilling at Maker’s Mark will not be affected.
Beam has yet to file a layoff notice with Kentucky, and it remains unclear how many jobs could be affected. According to the company, Jim Beam employed nearly 1,500 people in Kentucky as of 2024.