The maker of Jim Beam bourbon whiskey will halt production at its main site in Kentucky for all of 2026.
The company said in a statement it would close its distillery in Clermont until it took 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,” it said.
It comes as whiskey distillers in the US face uncertainty around Donald Trump’s trade tariffs, as well as declining rates of alcohol consumption.
In October, the Kentucky Distillers’ Association (KDA) trade body said there was a record amount of bourbon in warehouses across the state – more than 16m barrels.
The KDA warned distillers faced a “crushing” $75m (£65m) in taxes on their inventory this year, as the state charges tax on ageing barrels of spirits.
Jim Beam said it was assessing how it would use its workforce while it paused production and was in talks with its workers’ union.
The company’s other operations in Kentucky, including another distillery and its bottling and warehouse plants, would remain open next year. Its visitor centre in Kentucky will also stay open.
Jim Beam is owned by the Japanese drinks group Suntory Global Spirits, which employs more than 6,000 people around the world, with more than 1,000 people across its sites in Kentucky.
Known for its celebrated single malt whiskies, Suntory’s brands also include Haku vodka and Sipsmith gin, as well as soft drinks Orangina and Lucozade. It acquired the US maker of Jim Beam in 2014 for $16bn, securing its status as one of the world’s biggest spirits makers.
In September, its chief executive, Takeshi Niinami, resigned from the company after police raided his home as part of an investigation into suspected illegal supplements.
Niinami, who has denied any wrongdoing, had joined Suntory in 2014, becoming the first executive from outside the founding family, after 12 years as chief executive of the convenience store chain Lawson.
Trump’s tariffs have cast a shadow of uncertainty across the spirits industry this year. In March, some Canadian provinces pulled American spirits from stores as a retaliatory move against US tariffs on Canadian goods. Since then some provinces have resumed buying American alcohol.
In the UK, whisky distillers are subject to a 10% tariff on goods exported to the US. The Scotch Whisky Association has estimated that it costs the sector £4m a week.
