Bourbon maker Jim Beam stops production at Kentucky site for 2026 | Food & drink industry

The maker of Jim Beam bourbon whiskey will halt manufacturing at its primary web site in Kentucky for all of 2026.The corporate mentioned in an announcement it might shut its distillery in Clermont till it took the “alternative to put money into web site enhancements”.“We’re all the time assessing manufacturing ranges to finest meet shopper demand and not too long ago met with our group to debate our volumes for 2026,” it mentioned.It comes as whiskey distillers within the US face uncertainty round Donald Trump’s commerce tariffs, in addition to declining charges of alcohol consumption.In October, the Kentucky Distillers’ Affiliation (KDA) commerce physique mentioned there was a file quantity of bourbon in warehouses throughout the state – greater than 16m barrels.The KDA warned distillers confronted a “crushing” $75m (£65m) in taxes on their stock this yr, because the state fees tax on ageing barrels of spirits.Jim Beam mentioned it was assessing how it might use its workforce whereas it paused manufacturing and was in talks with its employees’ union.The corporate’s different operations in Kentucky, together with one other distillery and its bottling and warehouse crops, would stay open subsequent yr. Its customer centre in Kentucky will even keep open.Jim Beam is owned by the Japanese drinks group Suntory World Spirits, which employs greater than 6,000 folks around the globe, with greater than 1,000 folks throughout its websites in Kentucky.Recognized for its celebrated single malt whiskies, Suntory’s manufacturers additionally embrace Haku vodka and Sipsmith gin, in addition to smooth drinks Orangina and Lucozade. It acquired the US maker of Jim Beam in 2014 for $16bn, securing its standing as one of many world’s greatest spirits makers.In September, its chief govt, Takeshi Niinami, resigned from the corporate after police raided his residence as a part of an investigation into suspected unlawful dietary supplements.Niinami, who has denied any wrongdoing, had joined Suntory in 2014, changing into the primary govt from exterior the founding household, after 12 years as chief govt of the comfort retailer chain Lawson.Trump’s tariffs have solid a shadow of uncertainty throughout the spirits business this yr. In March, some Canadian provinces pulled American spirits from shops as a retaliatory transfer towards US tariffs on Canadian items. Since then some provinces have resumed shopping for American alcohol.Within the UK, whisky distillers are topic to a ten% tariff on items exported to the US. The Scotch Whisky Affiliation has estimated that it prices the sector £4m every week.