Bourbon maker Jim Beam will pause production at its distillery on 1 January for all of 2026, following rising inventory.
In a statement, the company said it would close its distillery in Kentucky until it took the “opportunity to invest in site enhancements”.
“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026,” it said.
The decision comes as whiskey distillers in the U.S. face uncertainty around President Donald Trump’s trade tariffs, as well as declining rates of alcohol consumption.
Kentucky has a record high inventory of 16.1 million aging barrels of bourbon in its warehouse, according to the Kentucky Distillers Association.
Distillers are paying for that supply, since the state charges taxes on aging barrels of spirits.
According to the trade group, Kentucky distillers paid US$75 million in aging barrel taxes this year, an increase of 27% from 2024.
While the Jim Beam distiller will pause for a year, its parent company, Suntory Global Spirits, will continue operations at its Fred B. Noe craft distillery in Clermont and Booker Noe distillery in Boston, Kentucky.
“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026,” the company told CNN.
Suntory Global Spirits has not announced any layoffs and employs more than 1,000 people across its Kentucky sites.
Bottling and warehousing will continue in Clermont, according to the statement, and Jim Beam will continue talks with employees represented by the United Food and Commercial Workers union as it determines the impact on its workforce.
