James B. Beam Bourbon Plant to Close in 2026 by Major Producer

The James B. Beam Bourbon plant, a prominent distillery located in Clermont, Kentucky, will cease bourbon production starting January 1, 2026. This decision was announced by Jim Beam, one of the world’s leading whiskey producers.

Impact on Bourbon Production

Despite the halt in production at the main distillery, the visitors center will remain open for those exploring the Kentucky Bourbon Trail. Jim Beam will maintain distillation operations at its craft distillery, known as the Freddie Booker Noe distillery, and at its larger Chicago facility in Boston. However, the company has decided to pause production at its primary Clermont site to focus on site enhancements.

Challenges Facing the Bourbon Industry

This development comes amidst challenges within Kentucky’s bourbon industry, valued at approximately $9 billion. The state is experiencing a surplus of whiskey and a decline in domestic demand. This has led to a significant production decrease of over 55 million proof-gallons by August 2025, representing a decline of more than 28%. This level of production is the lowest observed since 2018.

• Exports have also been affected, particularly as Canada has scaled back imports of American spirits due to trade tensions.
• Since March, U.S. whiskey sales to Canada have plummeted by over 60% through October.

Workforce and Community Engagement

As of now, Jim Beam has not announced any layoffs associated with the production pause. The company has been in discussions with the United Food and Commercial Workers Local 227 union to explore how best to manage the workforce during this transitional period. Currently, Jim Beam employs nearly 1,500 workers across Kentucky.

Founded in 1795, Jim Beam’s distillery in Clermont is one of the oldest in Kentucky, producing not only the flagship Jim Beam brand but also other well-known labels, including Basil Hayden and Knob Creek. The distillery is a major tourist attraction, drawing more than 100,000 visitors annually, alongside the nearby Maker’s Mark distillery.

Suntory Global Spirits and Future Investments

Jim Beam is owned by Suntory Global Spirits, a Japanese company that has reportedly invested over $540 million in its Kentucky operations since acquiring Jim Beam in 2014. While the Clermont distillery finances are under review, Suntory has confirmed that the operations at Maker’s Mark will not be affected.