Jim Beam to Suspend Production at Flagship Kentucky Distillery in 2026
Bourbon producer Jim Beam has announced plans to pause production at its main distillery in Kentucky for the whole of 2026, citing the need for upgrades and a reassessment of output levels.
In a statement to the BBC, the company said the temporary shutdown would allow it to invest in improvements at the site while aligning production with market demand. “We regularly review our production plans to ensure they match consumer needs, and we recently discussed our 2026 volumes with our teams,” the company said.
Jim Beam is owned by Japanese drinks group Suntory Global Spirits, which employs more than 1,000 people across several facilities in Kentucky. While operations at the flagship distillery will be suspended, the company confirmed that its other distillery in the state, along with bottling and warehousing facilities, will continue to operate. The brand’s Kentucky visitor centre will also remain open.
The company said it is currently in discussions with workers and their union to determine how staff will be deployed during the production pause.
The decision comes against a backdrop of growing uncertainty in Kentucky’s bourbon industry. In October, the Kentucky Distillers’ Association reported that bourbon stockpiles in the state had reached a record level of more than 16 million barrels. The association said taxes on stored barrels had cost distillers about $75m (£56m) this year alone.
US bourbon makers have also been affected by global trade tensions. Retaliatory tariffs imposed after President Donald Trump announced sweeping import duties earlier this year have weighed on exports, while trade disputes with Canada led several provinces to boycott American spirits.
Industry leaders have warned that years of expansion aimed at boosting international sales now face headwinds, and have called for a return to tariff-free trade to support the sector’s long-term growth.
