Jim Beam pauses production at main distillery as bourbon inventories rise

[JohnS]

While it's not quite off-topic, we normally don't bring you news of this type. However, as many of us do enjoy Bourbon Whiskey, and culturally-speaking it's very, very important to American culture, I thought it pertinent to post the article below. In my native country of Australia, it is and remains one of the most popular imported alcoholic products and is well-known amongst the population. A special thanks to the longtime FoH member who made me aware of this 'turn of events'.

Jim Beam pauses production at main distillery as bourbon inventories rise

By Auzinea Bacon - Dec 22, 2025

 

Jim Beam will pause production at its distillery on the James B. Beam campus next year. Igor Golovniov/SOPA Images/LightRocket/Getty Images/File

Popular Kentucky bourbon maker Jim Beam plans to pause production at its main distillery on January 1, according to the James B. Beam Distilling Co.

The decision comes as Kentucky faces an increasing supply of aging barrels and uncertainty over President Donald Trump’s trade wars.

Kentucky has an all-time high of 16.1 million aging barrels of bourbon in its warehouses, the Kentucky Distillers’ Association said in October. Distillers are paying for that supply, since the state charges taxes on aging barrels of spirits. Kentucky distillers paid $75 million in aging barrel taxes this year, up 27% from 2024, according to the trade group.

Jim Beam, which is owned by Suntory Global Spirits, intends to pause production at its main distillery on the James B. Beam campus in Clermont, Kentucky, while it invests “in site enhancements,” according to a company statement. It will continue distilling at its Fred B. Noe craft distillery in Clermont and the Booker Noe distillery in Boston, Kentucky.

“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 the statement shared with CNN on Sunday.

Suntory Global Spirits has not announced layoffs. It employs more than 1,000 people across its Kentucky sites, according to the company.

Bottling and warehousing will continue in Clermont, according to the statement, and Jim Beam will continue talks with employees represented by the United Food and Commercial Workers union as it determines the impact on its workforce.

Union representatives have not responded to CNN’s request for comment.

Alcohol on the front lines of the trade war

Whiskey and spirit makers have had to deal with retaliatory tariffs from the trade war sparked by Trump’s tariffs, and with consumers pulling back on discretionary spending amid an affordability crisis.

The trade fallout between the United States and Canada has also impacted whiskey and spirit makers. In March, Canadian officials banned American spirits from stores, a rule that is still in place in some provinces.

The European Union in March threatened to increase tariffs on American whiskey to 50% in retaliation for Trump’s steel and aluminum tariffs, but in August the EU announced a six-month suspension of retaliatory tariffs on US imports, including distilled spirits, wine and used barrels.

“Long-term planning for a product that won’t be ready for years is already tough enough. We need the certainty of tariff-free trade for America’s only native spirit to flourish,” Eric Gregory, president of the Kentucky Distillers’ Association, said in October.

Source: https://edition.cnn.com/2025/12/21/business/jim-beam-tariffs-pause-production

[Çnote]

Jim Beam hasn't been run from Kentucky in a long long time. For years Chicago offices made decisions for Kentucky and now NYC and Tokyo are in the mix. They have decades of questionable press releases but this is a doozy.

This terrible link should get thru the NYTimes paywall, Chuck Cowdery provided it publically as he sees it as most factual and balanced.

https://www.nytimes.com/2025/12/22/dining/jim-beam-production-pause-whiskey-bourbon.html?unlocked_article_code=1.-k8.4Gu1.Gl2TyUz3ap3u&smid=fb-share&fbclid=IwY2xjawO3KRdleHRuA2FlbQIxMQBzcnRjBmFwcF9pZA80MDk5NjI2MjMwODU2MDkAAR7UefuyeeFwIWdWMxvPcBLr9I-vnBDqSd2EpK5DyDEk0X4RykxoANaS4nfDYA_aem_N-Str8f8sJvwsl-IqyJJ7Q

https://chuckcowdery.blogspot.com/2025/12/jim-beam-wont-distill-at-clermont-in.html

https://chuckcowdery.blogspot.com/2025/12/why-did-suntory-botch-its-jim-beam.html

If you're not familiar with Chuck, imagine Ken, but bourbon-soaked. 

CNN isn't very detailed here. The 'main campus' is more the 'mother factory,' there will be plenty of capacity for distillation and bottling, the Boston facility is bigger and the craft campus is still active. This also doesn't affect Makers Mark, so again plenty of bourbon being distilled in 2026 for 2030 and beyond.

Hopefully, this is more building distillery infrastructure for the future, but it is a scary time in the world of alcohol.

[helix]

Jack and Jim are vile concoctions IMHO.

[Ryan]

90% of Irish whiskey production shut down this year. 90%.

Many distilleries blame tariffs but the rot started well before tariffs.

Production was ramped up during Covid demand and makers thought demand would keep growing. That's most of it.

[Rupe]

I have stayed away from bourbon in general over the past couple of years because prices had become unrealistic IMO.

I was pleasantly surprised though when I visited the liquor store last week to pick up some "holiday cheer". Many of the mainline brands like Maker's Mark, Woodford, etc. were selling for ~ $25 which has made me think about starting to drink bourbon again.

[BrightonCorgi]

US whiskey producers need to work building market in India. There's a lot of business to grow and they haven't focused on it the way they should.  

[riderpride]

The tides were already turning with oversupply and the additional trade uncertainty and costs didn't help. Add to that a new generation that doesn't drink, and you've got a crisis coming. 

The consumers worked themselves into a frenzy over the stuff in the last 10 yrs - following distribution trucks on delivery days, buying and flipping even regular bottles on the secondary market creating an even greater shortage and further panic. 

Some distilleries increased production thinking a boom was the new norm and are now faced with a bleak future. Some held the line knowing all booms pass and keeping QC high by not dumping under-aged barrels for consumption - they were vilified by the consumer just so they could get their hands on a bottle of something 'special '. The grudges by the entitled are still held by many.

It doesn't matter what the product is - these cycles will always exist in a free market, so adapt to new conditions wisely.

Cheers!

[AshMe Nothing]

Market saturation by NDP’s (Non-Distiller Producers) is a big factor IMO. 95% of bourbon in the world is produced where I live. It’s ALL produced by about half a dozen distillers. NDP’s throw in catch phrases like “heritage, small batch, single barrel, ect.” to make consumers feel like they are getting something rare, exclusive, or exotic. The use a “unique recipe”, change the bottle and label and send it out into the world. Lipstick on a pig. Too many choices. Way too many. 90% of the time I browse the bourbon section for 20 minutes at the local grocery store and pick up the same thing I always do. Why gamble on something they may be a dud in a pretty bottle. No one is going to build a distillery and rick houses to sit on millions of dollars worth of inventory for 4 years minimum when someone with deep pockets can do that for you and assume that risk. It’s easier to rent than own in this scenario.

I can see a parallel in the cigar industry in this regard as well. Too many choices in the NC market. Fancy it up, market the s**t out of it, hope a certain magazine puts you in their top 25, etc. I’m sure you don’t start out in the cigar industry by building a cigar factory and buying tons of tobacco to age. You buy aged tobacco from someone. You roll in a space you probably don’t own yourself.

All bubbles burst eventually.

Just my 2 cents.

[Wiclovis18]

Fine bourbon whiskey has shown consistent growth (even with/prior COVID being factored). Bourbon production and capacity follows 5 year "cycles" in which surplus or deficit can be projected. As members have already discussed, the next few years should hold more availability at better prices. Knob Creek, Buffalo Trace, and many other distillers are already pivoting towards aging stock a bit longer to combat the affects of gross surplus (Eagle Rare 12 year release, Knob Creek 23 year release). Anything distilled by MGP (distiller conglomerate) with low or no age statement is going to be first on the chopping block. Me personally, I enjoy a good barrel strength non-MGP distillate. My palate favors grape and stone fruit so naturally I gravitate to Buffalo Trace's Stagg, Eagle Rare, and other kinds of alcohol like Cognac.

[JoshD]

The market can't continue on a geometric expansion trajectory forever or we'd run out of oak trees. There are still new micro distilleries popping up, I feel bad for them as it will be difficult get your name out there in this market.  

[Montezüma]

I like how Gen Z don't drink, I wonder what chaos would transpire in a sober future. They have initiated several revolutions so far, sobriety really is a tricky thing.

[Ethernut]

Being from Kentucky and somewhat involved in the bourbon industry, I can confidently say the issue has nothing to do with politics as the article quickly pointed out, as is fashionable. 

What’s really happened is the secondary market bubble burst. The craze ended. Distilleries spent the last decade doubling and tripling their production capacity and now sit on a bunch of stock.

What’s going to happen on a long enough timeline is we end up with some interesting super aged stock coming into the next decade. I don’t see bourbon coming back for a while. Many enthusiasts that drove the demand have moved on to other spirits like high end tequilas, Mezcal and Rums. 

[zeedubbya]

11 hours ago, Ethernut said:

Being from Kentucky and somewhat involved in the bourbon industry, I can confidently say the issue has nothing to do with politics as the article quickly pointed out, as is fashionable. 

What’s really happened is the secondary market bubble burst. The craze ended. Distilleries spent the last decade doubling and tripling their production capacity and now sit on a bunch of stock.

What’s going to happen on a long enough timeline is we end up with some interesting super aged stock coming into the next decade. I don’t see bourbon coming back for a while. Many enthusiasts that drove the demand have moved on to other spirits like high end tequilas, Mezcal and Rums. 

Warning! warning!  Do NOT feed the @Ethernut, you may risk unleashing the fury of his legend upon this forum, and I think in today’s day and age it would be too much dopamine overload for those unaccustomed to these type of things!   

*He knows I am just joking, nice to see you post old friend, let’s catch up soon please, it’s been too long.  

**Do take him seriously on all things Whiskey/Bourbon—he is a genuine expert on the subject.  

[sbsbsb1]

23 hours ago, Ethernut said:

Being from Kentucky and somewhat involved in the bourbon industry, I can confidently say the issue has nothing to do with politics as the article quickly pointed out, as is fashionable. 

What’s really happened is the secondary market bubble burst. The craze ended. Distilleries spent the last decade doubling and tripling their production capacity and now sit on a bunch of stock.

What’s going to happen on a long enough timeline is we end up with some interesting super aged stock coming into the next decade. I don’t see bourbon coming back for a while. Many enthusiasts that drove the demand have moved on to other spirits like high end tequilas, Mezcal and Rums. 

Largely agree it's not primarily caused by politics/tariffs, though I think this does impact the industry's ability to expand into emerging markets to a degree, which would help offset the decline they're seeing in consumption for the younger generations (that's the real issue here).

There is some nuance to the secondary market  point....yes, the craze has ended with regard to guys standing in line to buy allocated shelfers like OWA, EHT, etc and selling them for 2 or 3 times markup. But it appears secondary is still strong with regard to vintage/dusty bottles and older limited edition bottles such as BTAC, old WT limiteds, and so on. I casually lurk and watch on Unicorn Auctions and am still surprised at what I'm seeing in terms of hammer price for these bottlings.

[Hammer Smokin']

It certainly doesn't have anything to do with the largest purchaser of alcohol in the world has stopped buying from the USA. Article suggests "most" places in Canada still remain firm. 

Correction. ALL of Canada still remains firm. Only some provinces has sold off their stock and donated money to charity. Ontario won't even do that. Like I said above, the US needs to get in bed with a new bourbon lover. Maybe India is the answer. 

[Çnote]

2 hours ago, Hammer Smokin' said:

Maybe India is the answer

India just lowered their industry protecting tarriffs on bourbon from 150% to 100%. Not alot of hope there. Big picture, Japan is the most sophisticated international market for Bourbon, eg Blantons, Olde St Nick. Too bad that's declining population. 

Boom/bust distillation cycles are a thing, look at Scotland since early 1800s. That history is basically why Diageo and Pernod own so many distilleries and to an extent why Rosebank, Port Ellen, and Clyendish/Brora are sought-after. Age numbers and pricing are the main issue, making bourbon aspirational and IGable. A very senior liquor buyer in TX remarked years ago that Old Crow was better than the HTF bottlings that people where calling about anyway, but tag it and put it on the shelf.

[Duxnutz]

A couple of weekends ago I stood in 18 degree F temps for hours for a chance to snag some highly allocated stuff, and I wasn’t alone. There was probably 500 other people there. In the top ten numbers called, half of the people appeared to be flippers. Just SAD. Greed is what will kill it, greed from the flippers and greed from the producers boosting prices and limiting stock. 

Plenty small places going broke already. 

[BrightonCorgi]

15 hours ago, Çnote said:

India just lowered their industry protecting tarriffs on bourbon from 150% to 100%. Not alot of hope there. Big picture, Japan is the most sophisticated international market for Bourbon, eg Blantons, Olde St Nick. Too bad that's declining population. 

India has the population size (1.4 billion) to overcome any tariff consideration on Bourbon.  There's never been a concerted effort to really build the market there.  Same with a handful of other cherished American food/drink items, but that is a for another thread.