One of the largest bourbon whiskey companies, Jim Beam, will pause production at its main US distillery for the entirety of 2026 as the sector wrestles with uncertainty caused by US tariffs.
The James B Beam Distilling Company said it would close its distillery in Clermont, Kentucky, for the year while it takes 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,” the company said in a statement.
Jim Beam’s bottling and warehousing operations will remain ongoing at the facility in Clermont. The company has not announced lay-offs of any its 1,000 staff in Kentucky.
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Jim Beam is owned by the Japanese drinks group Suntory Global Spirits, which acquired the brand in 2014 for $16 billion (€13.6 billion), the acquisition also included two Irish distilleries owned by Beam: Cooley and Kilbeggan.
The renowned Cooley Distillery, founded by John Teeling was sold to Beam Inc in early 2012, and became part of Suntory’s global drinks empire. Suntory did not comment on whether its Irish operations will also be impacted.
Known for its celebrated single malt whiskeys, Suntory’s brands also include Haku vodka and Sipsmith gin, as well as soft drinks Orangina and Lucozade. It employs more than 6,000 people around the world.
Jim Beam said it was assessing how it would use its workforce while it paused production and was in talks with its workers’ union.
The company’s other operations in Kentucky, including another distillery and its bottling and warehouse plants, would remain open next year. Its visitor centre in Kentucky will also stay open.
The decision by the Suntory brand comes amid uncertainty in the whiskey industry exacerbated by US trade tariffs.
Concerns were already raised by declining rates of alcohol consumption, an oversupply of product to market, cost of living pressures and production costs. In Ireland, that saw around 90 per cent of distilleries pause or reduce production following the announcement of trade tariffs in April, though many have since resumed production.
Regulatory pressures are a factor in the US. The Kentucky Distillers’ Association (KDA) trade body said there was a record amount of bourbon in warehouses across the state – more than 16m barrels.
The KDA warned distillers faced a “crushing” $75 million (€68 million) in taxes on their inventory this year, as the state charges tax on ageing barrels of spirits. – Additional reporting: The Guardian.
