Jim Beam Shuttering Kentucky Distillery, Halting Production, For 2026

One of Kentucky’s largest bourbon producers will halt whiskey production at its main Clermont site for 2026. Jim Beam plans to pause distillation at the James B. Beam campus in Happy Hollow beginning Jan. 1 while investing in site enhancements, according to the Lexington Herald Leader.

“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026,” the statement said. “We’ve shared with our teams that while we will continue to distill at our (Freddie Booker Noe) craft distillery in Clermont and at our larger Booker Noe distillery in Boston, we plan to pause distillation at our main distillery on the James B. Beam campus for 2026 while we take the opportunity to invest in site enhancements. Our visitor center at the James B. Beam campus remains open so visitors can have the full James B. Beam experience and join us for a meal at The Kitchen Table.”

Bottling and warehousing will continue at Clermont, and the visitor center will remain open for Kentucky Bourbon Trail tourists. The pause was first reported by the Louisville Business Journal.

The Herald writes that the move comes as Kentucky’s $9 billion bourbon industry faces oversupply and weaker demand. Production statewide is down more than 55 million proof-gallons—over 28%—through August, the lowest level since 2018. Exports have also fallen, with U.S. whiskey sales to Canada down more than 60% through October amid a boycott tied to trade tensions.

Beam has not filed a layoffs notice with the state, and it is unclear how many jobs could be affected. Workers are represented by United Food and Commercial Workers, and the company said it is in discussions with the union “to assess how best to utilize our workforce during this transition.”

The Clermont facility produces Jim Beam’s flagship bourbon along with Basil Hayden and Knob Creek. A larger distillery in Boston, Ky., will not be affected. Distilling at Maker’s Mark also is unaffected. As of 2024, Jim Beam employed nearly 1,500 people in Kentucky.