Alcohol Industry and Trade

Jim Beam will halt bourbon production for at least a year in 2026 at its Clermont, Kentucky distillery, keeping bottling, warehousing and the visitor center open while it invests in plant improvements and reassesses output amid tariffs and weakening demand. The company cites the long lead times of bourbon aging as it balances a glut of about 16 million barrels in Kentucky warehouses against slumping American spirits exports—down 9% overall and 85% to Canada in Q2 2025—amid Trump administration trade tensions and a Canadian boycott. Jim Beam is in talks with the distillery’s union over whether the shutdown will mean layoffs or other workforce reductions.