Cloudy future for bourbon has Jim Beam closing Kentucky distillery for a year

Bourbon producer Jim Beam is shutting down production at one of its distilleries in Kentucky for at least a year due to the direction of the whiskey industry tariffs from the Trump administration and reduced demand for a product that had to age for years before it was ready.

Jim Beam says he’s decided to pause bourbon making Its Clermont location in 2026 will give the company time to invest in distillery improvements. In addition to on-site bottling and storage, James B. Beam Distilling Co. The visitor center and restaurant will also remain open.

The company said it will continue operations at its larger distillery in Boston, Kentucky.

“We are always evaluating production levels to best meet consumer demand,” the company said in a statement.

Employees at the distillery are being redeployed internally and Jim Beam is not planning layoffs at this time, according to the local United Food and Commercial Workers International Union chapter that represents the workers.

Bourbon makers gamble towards the future. Jim Beam’s flagship bourbon requires aging in barrels for at least four years before bottling.

Whiskey producers are engaged in back-and-forth arguments over tariffs in Europe and in canadaBoycott began after Trump administration suggested the country join the US

General export According to the Distilled Spirits Council of the United States, American spirits in the second quarter of 2025 are down 9% from a year ago. The most dramatic drop was in U.S. alcoholic beverage exports to Canada, down 85% in the April-June quarter.

Bourbon production has grown significantly in recent years. As of January, there were approximately 16 million barrels of bourbon in Kentucky warehouses; That’s more than three times the amount held 15 years ago, according to the Kentucky Distillers Association.

But sales figures and surveys show that Americans drink less more than they have had in decades.

Approximately 95% of all bourbon produced in the United States comes from from Kentucky. The trade group estimates the industry brings more than 23,000 jobs and $2.2 billion to the state.