Temporary halt begins January 1 amid industry slowdown
The maker of Jim Beam bourbon said it will pause production at its main distillery in Kentucky starting January 1, citing planned site improvements during the shutdown period.
Jim Beam, owned by a U.S. subsidiary of Suntory Holdings, confirmed in an email to CBS News that operations at its Clermont, Kentucky distillery will be temporarily suspended while the company invests in facility enhancements. The James B. Beam campus will remain open to visitors during the pause.
Other Kentucky distilleries to remain active
Despite the production halt at its primary site, Jim Beam said distilling will continue at its Fred B. Noe craft distillery in Clermont and at the Booker Noe distillery in Boston, Kentucky. The company did not specify how long the pause at the main facility is expected to last.
Broader challenges facing the spirits industry
The decision comes as the U.S. wine and spirits industry faces mounting pressure from shifting consumer behavior and trade disruptions. According to Gallup, the share of U.S. adults who consume alcohol has dropped to 54%, close to a 90-year low.
At the same time, exports of U.S.-produced spirits declined 9% in the second quarter, according to an October report from the Distilled Spirits Council of the United States. The report cited the impact of tariffs imposed under President Donald Trump as a key factor behind the downturn.
Sharp decline in exports and whiskey output
Exports to Canada were hit especially hard, falling 85% after Canadian retailers removed U.S. spirits from store shelves in retaliation for the tariffs. Domestic production has also slowed considerably.
Through August, U.S. whiskey distillers produced 55 million fewer proof gallons compared with the same period last year, a 28% decline, according to data reported by the Lexington Herald-Leader. A proof gallon is defined as one U.S. gallon of liquid at 50% alcohol by volume.
