Jim Beam, one of the world’s largest American whiskey producers, will halt production at its Clermont, Kentucky distillery starting January 1, 2026, with the pause set to last throughout the year.
“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026,” the company said in a statement, according to the Lexington Herald-Leader. “While we will continue to distill at our Freddie Booker Noe craft distillery in Clermont and our larger Booker Noe distillery in Boston, we plan to pause distillation at our main James B. Beam campus distillery for 2026 to invest in site enhancements.”
The on-site visitor center will remain open for Bourbon Trail tourists.
This decision comes amid a surplus of whiskey in Kentucky’s $9 billion bourbon industry and declining domestic demand. Production has dropped by more than 28% through August 2025, marking the lowest levels since 2018, according to the Lexington Herald-Leader.
Exports have also been affected, with U.S. whiskey sales to Canada falling over 60% through October due to trade tensions. Other Kentucky bourbon producers, including Brown-Forman, have similarly paused production or announced layoffs this year.
The Clermont distillery produces flagship brands including Basil Hayden and Knob Creek. Jim Beam’s larger Boston, Kentucky distillery, also operated by Suntory Global Spirits (which owns Maker’s Mark), will continue normal operations. Distilling at Maker’s Mark will not be affected.
Beam has not yet filed a layoff notice, and the impact on its nearly 1,500 Kentucky employees as of 2024 remains unclear.
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