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Jim Beam suspends main Kentucky distillery operations for 2026
The producer of Jim Beam bourbon will idle its primary Kentucky distillery throughout next year to undertake facility upgrades, the company confirmed on Sunday.
Investment and workforce plans
In a statement to the BBC, the company described the pause as an "opportunity to invest in site enhancements." It added that it is currently evaluating production volumes for 2026 to align with consumer demand.
Jim Beam, owned by Japanese beverage conglomerate Suntory Global Spirits, employs over 1,000 people across its Kentucky sites. While the main distillery will remain closed, other operations-including a separate distillery, bottling plants, and warehousing facilities-will continue running. The Kentucky visitor center will also stay open.
The company is discussing workforce deployment during the shutdown with the employees' union.
Industry challenges and trade tensions
Kentucky's bourbon sector, a cornerstone of the state's economy, is grappling with uncertainty partly due to U.S. trade policies. In April, President Donald Trump's "Liberation Day" announcement imposed tariffs on goods from most countries, triggering retaliatory measures against American exports, including spirits.
Trade disputes with Canada have further strained the industry. Earlier this year, most Canadian provinces imposed boycotts on U.S. alcohol products, reducing export opportunities.
Record bourbon stocks and financial strain
In October, the Kentucky Distillers' Association (KDA) reported that bourbon inventories in state warehouses had reached a historic high of over 16 million barrels. The association noted that state taxes on these aging barrels have imposed a "crushing" $75 million (£56 million) burden on distillers this year.
"Much of the expansion over the last decade has been geared toward global growth. We urge a swift return to reciprocal, tariff-free trade,"
Kentucky Distillers' Association, October statement
Outlook for Kentucky's bourbon industry
The KDA has called for policy changes to alleviate the financial pressure on distillers, emphasizing the need for stable trade conditions to sustain the industry's growth. Meanwhile, Jim Beam's production halt reflects broader strategic adjustments amid shifting market dynamics.
