Bourbon Boom Slows as Jim Beam Shuts Down

Jim Beam is planning a temporary shutdown of its main Kentucky distillery as it adjusts to shifting market conditions. Suntory Global Spirits, the company that owns the iconic bourbon brand, announced it will pause bourbon production at the James B. Beam distillery in Clermont for all of 2026.

The company described the move as an opportunity to carry out site improvements and fine-tune production levels. In a statement to the BBC, Suntory said it regularly reviews output to match consumer demand and recently met with employees to discuss projected volumes for 2026.

Suntory said it is currently working with the union to determine how workers will be deployed during the shutdown. Other operations in Kentucky—including a second distillery, bottling facilities, warehouses, and the Jim Beam visitor center—will continue operating as usual.

The pause comes as Kentucky’s bourbon industry faces a changing environment, including softer demand for alcohol. According to the Kentucky Distillers’ Association, the state had a record 16.1 million barrels of bourbon aging in warehouses as of October. That inventory generated $75 million in state barrel taxes this year, a figure the association described as “crushing.” CNN reported the total represents a 27% increase compared with last year.

Suntory Global Spirits acquired Jim Beam in 2014 in a $16 billion deal and is now one of the world’s largest spirits companies. The firm employs more than 6,000 people globally, including over 1,000 in Kentucky, according to the Guardian. Its portfolio includes brands such as Haku vodka, Sipsmith gin, Orangina, and Lucozade.

The company has also experienced recent internal challenges. CEO Takeshi Niinami stepped down in September following a police raid on his home tied to an investigation into suspected illegal CBD supplements. Niinami has denied any wrongdoing.

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