Iconic American Bourbon Brand is Shuttering its Trademark Distillery in 2026

Jim Beam is putting its trademark distillery on ice.

The iconic American bourbon brand announced it will stop producing whiskey at its facility in Clermont, Kentucky on January 1. The pause will last for the entirety of 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, per the Lexington Herald Leader. “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 while we take the opportunity to invest in site enhancements."

The visitor center for those who pass through on the famed Kentucky Bourbon Trail.

Why is Jim Beam Stopping Production?

It's been a rough year for Kentucky's $9 billion whiskey industry. Tariffs and boycotts are hitting business hard: Canada hasn't bought any American-manufactured spirits since March in response to President Donald Trump's ongoing tariff regime. Overall, U.S. whiskey sales to Canada are down 60%.

As a result, the bourbon industry has halted production by more than 55 million proof-gallons, representing a 28% downshift.

Though the Jim Beam's main distillery is shuttering operations for next year, layoffs haven't been announced--at least not yet. Jim Beam employs nearly 1,500 people in Kentucky.

Other whiskey companies, such as Jack Daniel's, have laid off employees as they pause production, too.

What's the Reaction?

Whiskey enthusiasts and concerned consumers are placing blame on Trump's tariffs. Canada is a major export market for American spirits, serving as the second-largest behind the European Union.

"Trump’s tariffs hurt Kentucky. There is no doubt about it," posted Kentucky Democratic Senate candidate Amy McGrath.

Though there is an apparent link between the bourbon industry slump and tariffs, it's worth noting that Kentucky bourbon sales started to slow down in 2024. Alcohol consumption across the U.S. is on the down swing: the percentage of U.S. adults who say they consume alcohol has dropped to 54%, the lowest percentage in Gallup's 90-year history.