December 23, 2025

Jim Beam halts key Kentucky distillery for a year

jim beam halts key kentucky distillery for a year
Photo source: AP News

Suntory Global Spirits, maker of Jim Beam bourbon, will pause production at its primary Kentucky plant for all of 2026 to fund essential upgrades.

The firm told the BBC on Sunday that this offers “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.”

Trump’s April “Liberation Day” tariffs on global imports have triggered retaliation, hitting Kentucky’s bourbon trade hard. The Kentucky Distillers’ Association (KDA) reported in October that state warehouses hold a record high of more than 16 million barrels, costing distillers $75 million in taxes this year.

Suntory, employing over 1,000 in Kentucky, said its other distillery, bottling plants, and warehouses will operate normally. The Clermont visitor centre remains open.

The company is consulting the workers’ union on staffing during the halt, as U.S. spirits exports fell 5% this year per the Distilled Spirits Council. Canadian boycotts of American liquor added to the strain.

“Much of the expansion over the last decade has been geared towards global growth,” the KDA noted, calling “for a speedy return to reciprocal, tariff-free trade.”

Governor Andy Beshear offers state support for distillers’ modernisation.

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