Bourbon maker Jim Beam has decided to pause production at one of its distilleries in Kentucky for at least a year due to the challenges faced by the whiskey industry, including tariffs imposed by the Trump administration and declining demand for aged products.

The decision to halt bourbon production at the Clermont location in 2026 will allow Jim Beam to focus on making improvements at the distillery while keeping the bottling and warehouse operations running. The James B. Beam Distilling Co. visitors center and restaurant will also remain open.

The company’s larger distillery in Boston, Kentucky, will continue to operate, with Jim Beam stating that they are always evaluating production levels to meet consumer demand.

Employees at the Clermont distillery will be reassigned within the company, and no layoffs are planned at this time, according to the local United Food and Commercial Workers International Union chapter representing the workers.

Jim Beam’s flagship bourbon requires a minimum of four years of aging in barrels before being bottled, highlighting the long-term commitment required by bourbon makers.

Whiskey makers are facing challenges with fluctuating tariffs in Europe and Canada, with a significant decrease in US spirits exports to Canada in recent quarters.

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