Jim Beam Stops Bourbon Production At This Kentucky Distillery Amid Fall In Demand

After experiencing over two decades of surging demand, bourbon distilleries are now facing a decline in sales. That hard truth has forced the popular bourbon distributor Jim Beam to take drastic measures to ensure the company remains profitable. Beginning in 2026, the Kentucky bourbon maker will temporarily cease production of its signature spirit at its Clermont, KY, distillery, according to a statement shared by Jim Beam (via The Associated Press).

Jim Beam's distillery in Boston, KY, will continue producing the liquor as normal, and the Clermont facility will carry on bottling bourbon ready to be freed from charred oak barrels. Tourist attractions such as the visitors center and The Kitchen Table Restaurant will also remain operational, but making new batches of bourbon will be put on hold for at least one year. While the distillery is closed, Jim Beam plans to invest in making improvements to the site.

The big difference between whiskey and bourbon is that the latter can only be produced in the United States, and folks abroad have taken a liking to Kentucky's finest over recent decades. However, American liquor distributors experienced a 9% decline in exports in the second quarter of 2025, according to The Associated Press. Given that Jim Beam's signature bourbon takes four years to mature before it can be sold, the company must do its best to predict what demand will be like in the future, and right now that future is obscure.

Jim Beam may not be the most expensive bourbon whiskey on the market, but producing it does come at a cost. Current and proposed tariffs have resulted in economic uncertainty in the spirits industry, and the business is flush with product for the time being. Early this year, the company was sitting on 16 million barrels of aging bourbon, and with the recent drop in demand from other countries, that may be more liquor than is necessary to meet current interest.

It's not just a slump in trade overseas. Earlier this year, Canadians began boycotting American spirits to the tune of 85% of previous imports (via The Associated Press). The move came as a form of retaliation for the Trump administration's proposal that the country be annexed into the United States.

It is currently unclear whether layoffs are on the horizon for Jim Beam employees at the Clermont distillery while the company's bourbon production is being reduced. However, the fact that another popular spirits manufacturer, Brown-Forman (which owns Jack Daniel's Tennessee Whiskey), laid off 12% of its employees this year doesn't paint a pretty picture for the future of Jim Beam's workforce (per Fortune). Sadly, the back-and-forth threat of tariffs isn't bringing any clarity to the situation. For now, all distillers can do is try their best to navigate murky waters.