One of Kentucky’s major bourbon producers, Jim Beam, announced plans to cease whiskey production at its Clermont distillery starting January 1, 2026. This decision is seen as a response to the current challenges facing the industry, particularly a significant surplus of whiskey coupled with a decline in domestic demand.

In a statement provided to the Lexington Herald Leader, Jim Beam explained that they continually assess production levels to align with consumer demand. As a part of their strategy, they will pause distillation at their primary distillery located on the James B. Beam campus, while still maintaining production at their smaller craft distillery in Clermont and the larger Booker Noe distillery in Boston.

While the main distillery will not distill whiskey during this period, bottling and warehousing operations will remain active at Clermont. The visitor center at the James B. Beam campus will continue to operate, offering visitors the full experience and dining options at The Kitchen Table.

Kentucky’s bourbon industry has experienced a significant downturn, with production slashed by over 55 million proof gallons—representing a 28% decrease through August—marking the lowest levels of production since 2018. A boycott of American spirits by Canada, initiated in response to tariffs during the Trump administration, has further impacted the market, with sales to Canada dropping by more than 60% through October. Despite these challenges, Jim Beam has yet to issue any layoff notices under Kentucky’s WARN Act.

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