Jim Beam will suspend production at its main distillery for all of 2026, starting January 1, according to the James B. Beam Distilling Co. In a statement to the BBC, the distillery says it will remain closed while the firm takes “the opportunity to invest in site enhancements.” “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. This decision follows a growing surplus of aging barrels in Kentucky and ongoing uncertainty related to US President Donald Trump’s trade policies. The brand emphasized that its other operations in the state, including a separate distillery as well as its bottling and warehousing plants, will continue to run next year. The brand, owned by Japanese drinks giant Suntory Global Spirits, added that it is evaluating how to utilize its workforce during the production pause and is in discussions with the workers’ union. In October, the Kentucky Distillers' Association reported a record of over 16 million barrels of aging bourbon stored in Kentucky warehouses. According to the trade group, Kentucky distillers paid $75 million in aging barrel taxes in 2025, a 27% increase from the previous year. US distillers have faced increased costs since Trump announced new tariffs on “Liberation Day” in April, which resulted in tariffs on most countries worldwide.
