Temporary halt begins January 1 amid industry slowdown
The maker of Jim Beam bourbon said it will pause production at its main distillery in Kentucky starting January 1. The company said the move is temporary and tied to planned upgrades at the site.
Jim Beam, owned by a U.S. subsidiary of Suntory Holdings, confirmed that distilling operations at its Clermont facility will be suspended while the company invests in enhancements to the property. The James B. Beam campus will remain open to visitors during the pause.
Other distilleries remain operational
While production at the main Clermont distillery will stop temporarily, Jim Beam said it will continue distilling at its Fred B. Noe craft distillery in Clermont and the Booker Noe distillery in Boston, Kentucky. The company did not specify how long the production pause at the main site will last.
Alcohol consumption trends weigh on the industry
The decision comes as the U.S. wine and spirits industry faces mounting headwinds. Americans are drinking less overall, according to Gallup, which found that just 54 percent of U.S. adults now consume alcohol. That figure is near a 90 year low.
Lower domestic demand has coincided with weakening production. Through August, whiskey distillers produced 55 million fewer proof gallons compared with the same period last year, a decline of 28 percent, according to data cited by the Lexington Herald Leader.
Exports hit by tariffs and trade tensions
International sales have also suffered. Exports of U.S. produced spirits fell 9 percent in the second quarter, partly due to the impact of tariffs imposed under President Donald Trump, according to an October report from the Distilled Spirits Council of the United States.
Canada was among the hardest hit markets. Exports to the country plunged 85 percent after Canadian retailers removed U.S. spirits from store shelves in retaliation for the tariffs, the trade group said.
Investment continues despite near term pressure
Despite the challenging backdrop, Jim Beam said the production pause is aimed at improving its flagship site rather than signaling a broader retreat. The company emphasized that visitor operations will continue and that distilling will remain active at other Kentucky facilities.