Bourbon maker Jim Beam plans to pause production at its main US distillery for all of 2026 after slumping demand caused an oversupply of whiskey.
The brand, owned by Japanese alcohol giant Suntory Holdings Ltd., said it’s halting whiskey distillation at the James B. Beam campus in Clermont, Kentucky after an assessment of its production levels against consumer demand, according to a statement on Monday.
The company plans to use the downtime to invest in site enhancements. Production will still continue at the smaller Fred B. Noe craft distillery in Clermont and the Booker Noe site in Boston, it added.
Sales of bourbon have slowed as consumers rein in spending and drinking, and as uncertainty over the impact of US President Donald Trump’s tariffs and taxes on aging barrels weigh on the sector, the Kentucky Distillers’ Association said in October. There are about 16.1 million barrels — a record — of bourbon aging in warehouses in Kentucky as of January, though most won’t be ready to bottle until after 2030, the association said.
Jim Beam, which employs about 6,000 people worldwide, did not announce layoffs. Bottling and warehousing operations will continue at the brand’s James B. Beam campus, while its visitor center and restaurant remain open, it said.
Suntory, which also owns soft drinks such as Orangina, is grappling with the fallout of Takeshi Niinami’s resignation as chief executive officer in September after Japanese police raided his home as part of an investigation into suspected illegal cannabis-based supplements. Niinami was one of the country’s best-known and most outspoken business leaders.