Jim Beam Halts Production As Whiskey Market Struggles
Jim Beam has announced that it will suspend operations at its primary bourbon-making facility in Kentucky beginning January 1, even as the broader whiskey industry grapples with slowing demand and shifting consumer habits.
In a statement sent to CBS News, the company said its Clermont, Kentucky distillery will shut down production for a limited period “while we take the opportunity to invest in site enhancements.” Despite the pause, Jim Beam noted that the James B. Beam campus will remain open to the public throughout the shutdown.
While activity at the main site will be paused, distilling will continue at other company facilities. Production will carry on at the Fred B. Noe craft distillery in Clermont as well as the Booker Noe distillery located in Boston, Kentucky.
The temporary shutdown comes during a challenging period for the spirits industry. Americans are drinking less overall, with Gallup reporting that only 54% of U.S. adults now consume alcohol — a level close to a 90-year low.
International sales have also taken a hit. According to an October report from the Distilled Spirits Council of the United States, exports of American-made spirits dropped 9% in the second quarter. The report pointed to the impact of tariffs imposed by the Trump administration, noting especially sharp declines in shipments to Canada. Exports to that market plunged 85% after Canadian retailers removed U.S. spirits from store shelves in response to President Trump’s trade measures.
Domestic production data reflects the slowdown as well. Through August, whiskey makers produced 55 million fewer proof gallons than during the same period last year, a decrease of 28%, the Lexington Herald-Leader reported. A proof gallon is defined as one U.S. gallon of liquid containing 50% alcohol by volume.
Even so, consumers are unlikely to see shortages anytime soon. Kentucky distilleries are currently storing a record 16.1 million barrels of aging bourbon, according to the Kentucky Distillers’ Association. Reported in October, that figure represents the highest total since Prohibition ended and marks a 27% increase compared with 2024.
Industry groups attribute the buildup to both a growing number of distillers operating in Kentucky and a recent cooling in demand. Trade uncertainty, softer export markets, and changes in drinking patterns have all contributed to the slowdown, the association said.
To qualify as bourbon, whiskey must meet specific U.S. legal standards. Among other requirements, it must be aged in new, charred oak containers and made from a grain mixture containing at least 51% corn, according to the whiskey tourism site Bourbon Country.
{Matzav.com}
