Acclaimed Kentucky bourbon maker Jim Beam plans to halt output at its principal distillery starting January 1, according to James B. Beam Distilling Co.
This choice comes amid mounting inventories of aged barrels in Kentucky and uncertainty surrounding President Donald Trump’s trade disputes.
Kentucky holds a historic record—16.1 million barrels of aging bourbon in storage, the Kentucky Distillers’ Association reported in October. Distillers fund this stock, as the state assesses levies on aged spirits barrels. Kentucky distillers paid \$75 million in barrel-aging taxes, up 27% from 2024, per the trade group.
Jim Beam, owned by Suntory Global Spirits, intends to pause manufacturing at its main facility on the James B. Beam campus in Clermont, Kentucky, while it invests in “site enhancements,” the company stated. Production will continue at the Fred B. Noe Distillery in Clermont and the Booker Noe Distillery in Boston, Kentucky.
“We continuously assess production volumes to best meet consumer demand, and recently met with our team to discuss 2026 volumes,” the company’s statement, shared with CNN on Sunday, read.
Suntory Global Spirits has not announced layoffs. The company employs over 1,000 people across its Kentucky sites, according to its figures.
Bottling and warehousing operations will proceed in Clermont, according to the announcement, and Jim Beam will keep in dialogue with employees represented by the United Food and Commercial Workers union as the impact on their workforce becomes clear.
Union representatives did not reply to CNN’s request for comment.
Spirits on the Front Lines of the Trade War
Whiskey and spirits producers have contended with retaliatory duties sparked by the trade conflict initiated by Trump’s tariffs, alongside reduced discretionary consumer spending amid affordability pressures.
Trade repercussions between the US and Canada have also affected whiskey and spirits makers. In March, Canadian authorities banned American spirits from store shelves—a regulation still in effect in some provinces.
In March, the European Union threatened to escalate tariffs on American whiskey up to 50% in response to Trump’s steel and aluminum duties, but in August, the EU declared a six-month pause on retaliatory duties for US imports, including distilled spirits, wine, and barrels.
“Long-term product planning, which won’t be ready for years, is challenging enough. We need certainty in tariff-free commerce for America’s sole native spirit to thrive,” Eric Gregory, president of the Kentucky Distillers’ Association, remarked in October.
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