Jim Beam Will Halt Operation at Main Kentucky Distillery in 2026
Jim Beam plans to halt distillation at its James B. Beam campus in Clermont, Ky., for 2026, Louisville Business First (LBF) reported Friday. The production freeze is effective Jan. 1 and will last through the year.
The affected location is the bourbon company’s main distillery, and Jim Beam will disperse production between its Booker Noe plant in Boston, Ky. and its Freddie Booker Noe facility in Clermont. Jim Beam — owned by Suntory Global Spirits based in Japan — has yet to explicitly provide reason for the pause in distillation, though it says it will invest in existing plant upgrades.
“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026,” says the company’s statement to LBF. “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.”
Jim Beam’s decision to cease distillation there comes amid a surplus of barrels aging in the Bluegrass State. Following the industry’s early 21st-century boom, it contracted by over 28 percent in 2025 through August, according to the Lexington Herald Leader.
The oversupply of bourbon seems to be a result of wilting demand caused by a lack of general consumer interest in alcohol and a mass of Canadian consumers boycotting American spirits in response to recently imposed tariffs. The trade war incited by President Trump thwarted exports by American liquor companies to key trading partners: The DISCUS’ American Distilled Spirits Exports 2025 Mid-Year Report showed a 68 percent drop in exports to Canada in April alone and an 85 percent plummet in Q2.
Jim Beam is not alone in stopping production: Oversupply has predicated the recent stoppage of manufacturing at several other major distilleries like Diageo, which pulled back production at a Kentucky distillery in March.
2026 would have been the 92nd year of distillation on the James B. Beam campus. Insights about layoffs and other operational impacts have yet to be disclosed. The distillery’s campus attracts large sums of tourists each year and will remain open for visitors.
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