Jim Beam, owned by Japanese Suntory Global Spirits, will stop production at its main Kentucky distillery for all of next year due to planned upgrades of the site, as reported by the BBC.
The company said the decision was made after reviewing production needs based on expected demand for 2026. Other Jim Beam sites in Kentucky, like a second distillery and bottling and warehousing facilities, will keep running, though. The visitor center will also stay open.
Meanwhile, Jim Beam is figuring out how to assign employees during the shutdown and is talking with labor representatives.
According to the Kentucky Distillers’ Association, bourbon stockpiles in the state are at record highs, increasing costs for producers because aging barrels are subject to annual state and local property taxes while they remain in storage.
At the same time, U.S. whiskey makers have been affected by retaliatory measures linked to trade tariffs introduced by President Donald Trump earlier this year. For example, Canada, one of the largest importers of American spirits, began boycotting U.S. products after Washington imposed higher tariffs on Canadian goods.
