The company, which is one of the biggest makers of the spirit—95 percent of which is still produced in Kentucky, according to the state tourism agency—said it will temporarily close its flagship (and largest) distillery next year. Its location in Boston, Kentucky, smaller craft distillery in Clermont, as well as its restaurant business will not be affected.
Jim Beam to Pause Production, Close Flagship Distillery in Kentucky for 2026
"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 shared with numerous outlets. "We’ve shared with our teams that while we will continue to distill at our (Freddie Booker Noe) craft distillery in Clermont and at our larger Booker Noe distillery in Boston, we plan to pause distillation at our main distillery on the James B. Beam campus for 2026."
During that time, the bourbon maker said it will continue to operate its nearby locations, including the James B. Beam visitor center, "so visitors can have the full James B. Beam experience and join us for a meal at The Kitchen Table." The company also plans to use the closure to work on its largest distillery, using it as an "opportunity to invest in site enhancements."
However, the president of IWSR countered the popular argument that lifestyle changes are fully to blame. Instead, in a statement shared with Reuters earlier this month, Marten Lodewijks suggested that the decrease isn't as dramatic when converted to weekly drinks per person, a data point the exec said better accounts for the change in how and what people are drinking. And according to Lodewijks, "We're not at any sort of historic low."
The IWSR data also looked at the economy as a factor, noting that while it will likely take years to determine whether the current decline is due to economic cycles or a long-term shift in consumer habits, it believes the strongest drivers for the decline include cost-saving measures on the part of consumers to combat things like inflation and the impact of tariffs—which have stirred trade wars and international boycotts since being imposed by President Donald Trump earlier this year. And the international retailiation appears to be having an effect, as in October, the Distilled Spirits Council of the U.S. reported a "significant downturn" in exports of distilled spirits, including American whiskey products like bourbon, due to "ongoing trade tensions" with the EU, UK, Japan and Canada. Coincidentally, around the same time, back in Kentucky, Jim Beam announced the U.S. arrival of a previously European exclusive, its Sunshine Blend.
Jim Beam's flagship closure, as far as we know, will only be temporary and the company indicated plans to reopen in 2027. However, it did not provide any details on when exactly the distillery would shut down, reopen or if the employees affected would be transferred to another location while it's closed.
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