Jim Beam is closing one of its Kentucky bourbon distilleries beginning in 2026.
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.
According to a company statement, the decision comes in response to decreasing consumer demand.
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."
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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."
The move comes four months after Gallup data indicated that Americans are drinking at record lows, citing a shift towards healthier lifestyles, and weeks after it was revealed that nationwide bourbon production has dropped to its lowest levels in years (down 55 million proof gallons since last year), with Jack Daniel's parent company reporting its profits for the quarter were down by 14 percent.
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."
Instead, IWSR said there's been a shift away from high-volume drinks like beer toward lower-volume spirits (which presumably includes the booming canned cocktails market). That, in part, with the expanded availability of both options and indie spirits, has apparently led to some disruptions in sales.
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.
The $9 billion industry, according to the Kentucky Distillers’ Association, brings more than 23,000 jobs and $2.2 billion in annual revenue to the state.
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.
As for what this means for American consumers, we wouldn't worry about availability just yet. Prior to this hiccup, bourbon production had been booming, and as recently as January, there were about 16 million barrels of bourbon aging in Kentucky warehouses—which is more than triple the amount held 15 years ago, per the Kentucky Distillers Association. Plus, it's still keeping up the manufacturing at its other distilleries. That said, distillers pay annual taxes on aging barrels, and Kentucky producers paid an estimated $75 million in barrel taxes this year (a 27 percent increase from 2024 and 163 percent increase over the last five years) so the price of the bottle may very well change come 2026, but only time will tell.
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