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Jim Beam shutting down production at Kentucky distillery for a year

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Published  December 23, 2025 9:52am EST
Business
FOX Local
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FILE - Steam rises from the The Jim Beam Distillery on February 17, 2020 in Clermont, Kentucky. (Photo by Bryan Woolston/Getty Images)

The Brief

    • Jim Beam is pausing production at a Kentucky distillery for at least a year starting in 2026.
    • Bourbon makers have been struggling with tariffs, a Canadian boycott and decreasing demand as fewer Americans drink alcohol.
    • Jim Beam’s larger distillery in Boston, Kentucky, will continue operations.

A popular distiller in the U.S. is pausing production at one of its facilities amid declining demand. 

Jim Beam says its production will be soon halted at one of its Kentucky distilleries. 

Jim Beam shutting down production

Big picture view:

Bourbon maker Jim Beam is halting bourbon making at its Clermont location for at least a year starting in 2026.

The decision comes as the whiskey industry navigates tariffs from the Trump administration and slumping demand for a product that needs years of aging before it is ready.

Dig deeper:

Bourbon makers have to gamble well into the future. Jim Beam's flagship bourbon requires at least four years of aging in barrels before being bottled.

Whiskey makers are dealing with back-and-forth arguments over tariffs in Europe and in Canada, where a boycott started after the Trump administration suggested annexing the country into the U.S.

What they're saying:

"We are always assessing production levels to best meet consumer demand," the company said in a statement. It plans to use this time to invest in improvements. 

Local perspective:

Employees at the distillery are being reassigned within the company and right now Jim Beam plans no layoffs, according to the local United Food and Commercial Workers International Union chapter that represents the workers.

Meanwhile:

The bottling and warehouse at the Clermont site will remain open, along with the James B. Beam Distilling Co. visitors center and restaurant.

The company's larger distillery in Boston, Kentucky, will continue to operate, the company said.

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Jim Beam brands

Big picture view:

In addition to the flagship Jim Beam brand, the company also produces popular small batches and other bourbons: 

  • Knob Creek
  • Basil Hayden
  • Booker’s
  • Baker’s
  • Little Book
  • Legent
  • Old Tub
  • Old Crow
  • Old Grand-Dad
  • Overholt
  • Hardin’s Creek
  • Clermont Steep

The Source: Information in this article was taken from Jim Beam Distilling. Background information was taken from The Associated Press. This story was reported from Detroit.

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