Popular Kentucky bourbon maker Jim Beam plans to pause production at its main distillery on Jan. 1, according to the James B. Beam Distilling Co.
The decision comes as Kentucky faces an increasing supply of aging barrels and uncertainty over U.S. President Donald Trump’s trade wars.
Kentucky has an all-time high of 16.1 million aging barrels of bourbon in its warehouses, the Kentucky Distillers’ Association said in October. Distillers are paying for that supply, since the state charges taxes on aging barrels of spirits. Kentucky distillers paid US$75 million in aging barrel taxes this year, up 27 per cent from 2024, according to the trade group.
Jim Beam, which is owned by Suntory Global Spirits, intends to pause production at its main distillery on the James B. Beam campus in Clermont, Kentucky, while it invests “in site enhancements,” according to a company statement. It will continue distilling at its Fred B. Noe craft distillery in Clermont and the Booker Noe distillery in Boston, Kentucky.
“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 the statement shared with CNN on Sunday.
Suntory Global Spirits has not announced layoffs. It employs more than 1,000 people across its Kentucky sites, according to the company.