The maker of Jim Beam bourbon whiskey is temporarily halting production at its main distillery in Kentucky, the company, which is part of the Japanese-owned Suntory Global Spirits group, confirmed. The decision will see the distillery remain closed through 2026 while improvements are made to the site and future production volumes are reviewed.
The company said the move is part of a comprehensive assessment process to determine production levels that are aligned with consumer demand. Suntory stressed that its Kentucky presence will not be disrupted, with its other distillery in the state, bottling and storage facilities, and its visitor center remaining open. The company employs more than 1,000 people in Kentucky and is currently in discussions with unions about how it will utilize its workforce during the production break.
The move comes amid market uncertainties affecting the U.S. bourbon industry. According to the Kentucky Distillers’ Association, a record amount of more than 16 million barrels of bourbon have accumulated in the state’s warehouses, placing a significant tax burden on producers. In addition, the sector is also sensitive to tariff measures related to US trade policy: retaliatory import taxes on American spirits have come into effect in several markets, and some provinces in Canada have boycotted American products.
According to professional organizations, the bourbon industry has primarily built on global growth in the past decade, but in the current situation, overproduction and trade tensions are forcing even the largest players to take a more cautious path.
