Jim Beam has announced that is it halting production at one of its distilleries in Kentucky for at least a year. Bourbon makers across the country have been reacting to declining drinking and tariffs.
Monthly data released by the Treasury Department showed that through August, whiskey distillers had produced under 142 million proof gallons, 55 million less than the same period in 2024.
Jim Beam says the decision to pause bourbon making at the Clermont, Kentucky location will give the company time to invest in improvements at the distillery.
In a statement, the company said:
“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026. We’ve shared with our teams that while we will continue to distill at our Fred B. Noe craft distillery and at our larger Booker Noe distillery in Boston, we plan to pause distillation at our Clermont distillery on the James B. Beam campus for 2026 while we take the opportunity to invest in site enhancements.
“Our visitor center at the James B. Beam campus remains open so visitors can have the full James B. Beam experience and join us for a meal at The Kitchen Table.
“Our bottling and warehousing are still operating at Clermont. We continue to assess how best to utilize our workforce during this transition, and conversations with the union are ongoing.”
The company says it continues to invest heavily behind Jim Beam and shifting production from our older and smaller Clermont distillery, which has been operating since the end of Prohibition, to its largest and most modern, efficient and sustainable distillery at Booker Noe allows it to invest in quality and sustainability improvements at Clermont during this pause.
Jim Beam is not alone in shutting down production. A number of smaller distilleries have filed for bankruptcy, while in September Diageo announced it was halting production at Balcones and George Dickel.
