Bourbon maker Jim Beam is halting manufacturing at one among its distilleries in Kentucky for at the very least a yr because the whiskey trade navigates tariffs from the Trump administration and slumping demand for a product that wants years of growing older earlier than it’s prepared.
Jim Beam mentioned the choice to pause bourbon making at its Clermont location in 2026 will give the corporate time to put money into enhancements on the distillery. The bottling and warehouse on the website will stay open, together with the James B. Beam Distilling Co. guests middle and restaurant.
Jim Beam guests middle at its central distillery in Clermont, Ky., in Oct. 2012.
The corporate’s bigger distillery in Boston, Kentucky, will proceed to function, the corporate mentioned.
“We are always assessing production levels to best meet consumer demand,” the corporate mentioned in an announcement that added they have been speaking with the distillery’s union to find out whether or not there can be layoffs or different reductions.
Bourbon makers have to gamble properly into the long run. Jim Beam’s flagship bourbon requires at the very least 4 years of growing older in barrels earlier than being bottled.
Whiskey makers are coping with back-and-forth arguments over tariffs in Europe and in Canada, the place a boycott began after the Trump administration recommended annexing the nation into the U.S.
Total exports of American spirits fell 9% within the second quarter of 2025 in comparison with a yr in the past, in accordance with the Distilled Spirits Council of america. Probably the most dramatic lower got here in U.S. spirits exports to Canada, which fell 85% within the April-through-June quarter
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Bourbon manufacturing has grown considerably lately. As of January, there have been about 16 million barrels of bourbon growing older in Kentucky warehouses — greater than triple the quantity held 15 years in the past, in accordance with the Kentucky Distillers’ Affiliation.
However gross sales figures and polling present People are consuming much less than they’ve in many years.
About 95% of all bourbon made within the U.S. comes from Kentucky. The commerce group estimated the trade brings greater than 23,000 jobs and $2.2 billion to the state.