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Jim Beam Stops Production at Key Distillery Amid Bourbon Glut
Company Did Not Announce Layoffs; Bottling and Warehousing Operations to Continue at Brand’s James B. Beam Campus
Bourbon maker Jim Beam plans to pause production at its main U.S. distillery for all of 2026 after slumping demand caused an oversupply of whiskey.
The brand, owned by Japanese alcohol giant Suntory Holdings, said it’s halting whiskey distillation at the James B. Beam campus in Clermont, Ky., after an assessment of its production levels against consumer demand, according to a Dec. 22 statement.
The company plans to use the downtime to invest in site enhancements. Production will still continue at the smaller Fred B. Noe craft distillery in Clermont and the Booker Noe site in Boston, it added.
Sales of bourbon have slowed as consumers rein in spending and drinking and as uncertainty over the impact of President Donald Trump’s tariffs and taxes on aging barrels weigh on the sector, the Kentucky Distillers’ Association said in October. There are about 16.1 million barrels — a record — of bourbon aging in warehouses in Kentucky as of January, though most won’t be ready to bottle until after 2030, the association said.
Jim Beam, which employs about 6,000 people worldwide, did not announce layoffs. Bottling and warehousing operations will continue at the brand’s James B. Beam campus, while its visitor center and restaurant remain open, it said.
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Just last week, Cookeville, Tenn.-based Averitt Express said it added dedicated tanker truck services to its logistics offerings for bourbon distilleries, expanding its long-standing role in supporting the industry.
The new capability allows distillers to transport spirits in bulk, a move aimed at improving efficiency as production volume increases. Company officials said tanker transportation can reduce congestion and improve safety at facilities that often operate in dense or high-traffic areas.
The new capability allows distillers to transport spirits in bulk, a move aimed at improving efficiency as production volume increases. Averitt said tanker transportation can reduce congestion and improve safety at facilities that often operate in dense or high-traffic areas.
Averitt ranks No. 29 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 100 on the TT Top 100 logistics companies list.
Suntory, which also owns soft drinks such as Orangina, is grappling with the fallout of Takeshi Niinami’s resignation as chief executive officer in September after Japanese police raided his home as part of an investigation into suspected illegal cannabis-based supplements. Niinami was one of the country’s best-known and most outspoken business leaders.
