The company behind Jim Beam bourbon has announced that it will stop making whiskey at its main factory in Kentucky for the whole of next year. Jim Beam is owned by Japanese beverage company Suntory Global Spirits, which has more than 1,000 employees working at its locations in Kentucky.
Other facilities to remain open
The company said its other facilities in the state will keep operating next year. These include another distillery, along with bottling and storage units. The visitor centre in Kentucky will also stay open.
Jim Beam added that it is reviewing how staff will be deployed while production is on hold and is in discussions with the workers’ union.
Why stop production?
The distillery will remain shut as the company plans upgrades and improvements at the site, the firm said in a statement. It explained that it regularly reviews how much it produces based on customer demand and has recently discussed production plans for 2026 with its staff.
The announcement comes as distillers in Kentucky, which is known worldwide for the bourbon, are facing an uncertain period, partly due to the trade policies introduced by US President Donald Trump.
In October, the Kentucky Distillers’ Association said bourbon stock in warehouses across the state had reached a record level of more than 16 million barrels.
The group said these barrels, which are taxed by the state, have cost distillers about $75 million this year, putting heavy financial pressure on the industry.
American distillers have also been hit by higher import taxes from other countries. This came after President Donald Trump announced wide-ranging tariffs in April under what he called “Liberation Day,” leading to retaliation from trading partners.
The association said much of the industry’s growth over the past ten years was aimed at selling more bourbon overseas and urged a quick return to two-way, tariff-free trade.
Sales have also been hurt by trade tensions between the US and Canada, with most Canadian provinces earlier choosing to stop selling American spirits.