The bourbonmaker Jim Beam has announced that it is halting production at one of its Kentucky distilleries for at least a year as the whiskey industry navigates tariffs from the Trump administration and reduced demand for its product.
The company said the decision to suspend making bourbon at its Clermont location in 2026 will give the whiskeymaker time to invest in improvements at the distillery.
The bottling and warehouse at the site will remain open, along with the James B. Beam Distilling Co. visitors center and restaurant.
The company's larger distillery in Boston, Kentucky, will continue to operate, Jim Beam said.
"We are always assessing production levels to best meet consumer demand," the company said in a statement.
Jim Beam said it would hold discussions with the distillery union to determine whether there will be layoffs or other reductions.
Jim Beam's flagship bourbon requires at least four years of aging in barrels before being bottled.
Whiskey makers have been caught in the back-and-forth over tariffs in Europe and in Canada, where a boycott started after President Donald Trump suggested annexing the country into the U.S.
Overall exports of American spirits fell 9% in the second quarter of 2025 compared with a year ago, according to the Distilled Spirits Council of the United States.
The most dramatic decrease came in U.S. spirits exports to Canada, which fell 85% in the April-through-June quarter.
While sales have fallen, bourbon production has grown significantly in recent years.
As of January, there were about 16 million barrels of bourbon aging in Kentucky warehouses — more than triple the number held 15 years ago, according to the Kentucky Distillers' Association.
About 95% of bourbon made in the U.S. comes from Kentucky. The trade group estimated the industry brings more than 23,000 jobs and $2.2 billion to the state.
Information from The Associated Press was used in this report.
Sam Barron ✉
Sam Barron has almost two decades of experience covering a wide range of topics including politics, crime and business.
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