Jim Beam Reels in Its Kentucky Bourbon Production

Jim Beam is about to give its flagship Kentucky distillery a yearlong timeout. Owner Suntory Global Spirits says it will suspend bourbon production at its James B. Beam facility in Clermont for all of 2026, calling the pause a chance to make "site enhancements" and recalibrate output. "We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026," it told the BBC in a statement.

The company said it is reviewing how to deploy workers during the shutdown and is negotiating with the union. Other Kentucky operations—including a second distillery, bottling lines, warehouses, and the visitor center—are set to keep running. The move comes as Kentucky's signature industry is grappling with a changing landscape, which includes softer alcohol demand. The Kentucky Distillers' Association in October reported a record 16.1 million bourbon barrels in storage across the state, generating what it called a "crushing" $75 million in state barrel taxes this year alone. CNN notes that's a 27% rise over last year's tax figure.

Suntory, which bought Jim Beam in 2014 for $16 billion, is one of the world's largest spirits groups, with more than 6,000 employees worldwide and over 1,000 in Kentucky, reports the Guardian. Its portfolio ranges from Haku vodka and Sipsmith gin to Orangina and Lucozade. The company has been dealing with its own turbulence: CEO Takeshi Niinami resigned in September after police raided his home in a probe involving suspected illegal CBD supplements, an allegation he has denied.