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Jim Beam Distillery in Clermont, KY to Temporarily Halt Production for “Site Enhancements”
Clermont, KY – Jim Beam, the renowned bourbon whiskey maker, announced plans to temporarily pause production at its primary distillery in Clermont, Kentucky, effective January 1st. The company, a subsidiary of Japan’s Suntory Holdings, cited a desire to “invest in site enhancements” as the reason for the brief hiatus.
Despite the production pause at its main facility, the James B. Beam campus will remain open to visitors.
Furthermore, Jim Beam confirmed that distillation will continue uninterrupted at its Fred B. Noe craft distillery in Clermont and the Booker Noe distillery in Boston, Kentucky.
This temporary halt comes amidst a complex landscape for the wine and spirits industry. Recent findings from Gallup indicate a notable decline in alcohol consumption among U.S. adults, with the share of drinkers nearing a 90-year low at 54%.
The industry has also faced export challenges. A recent report from the Distilled Spirits Council of the United States revealed a 9% drop in U.S. spirits exports during the second quarter. This decline is partly attributed to the lingering impact of past tariffs, with exports to Canada experiencing a particularly steep 85% reduction after Canadian retailers responded to the tariffs by removing U.S. spirits from shelves.
According to the Lexington Herald-Leader, whiskey distillers have produced 55 million fewer proof gallons this year compared to the same period last year, marking a 28% decrease through August. A proof gallon is defined as one U.S. gallon of liquid containing 50% alcohol by proof.
However, bourbon enthusiasts need not anticipate a shortage. The Kentucky Distillers’ Association reported a record 16.1 million barrels of aging bourbon currently stored in Kentucky warehouses as of October. This figure represents the highest level since the repeal of Prohibition and a 27% increase since 2024.
The surge in bourbon supplies is partly a result of an increased number of distillers operating in Kentucky. However, the industry is simultaneously navigating a dip in demand, influenced by tariff uncertainties, declining exports, and evolving consumer drinking habits.
Bourbon, a distinct type of whiskey, must adhere to specific U.S. distilling regulations to earn its label. These requirements include aging the spirit in new, charred oak containers and ensuring the grain recipe comprises at least 51% corn.