James B. Beam Distilling Co. plans to halt distillation at its main facility in Clermont starting January 1, 2026, through the end of the year, shifting output to its larger Booker Noe plant in Boston, Kentucky, to align with consumer demand and allow for site upgrades.
The company issued a statement confirming the pause affects the primary distillery on the James B. Beam campus, while maintaining operations at its Fred B. Noe craft distillery in Clermont and the Booker Noe site. “We’ve shared with our teams that while we will continue to distill at our FBN craft distillery in 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,” the statement read. It added that bottling and warehousing will continue at Clermont, ensuring partial functionality during the period.
The visitor center and The Kitchen Table restaurant on the Clermont campus will stay open, preserving access for tourists on the Kentucky Bourbon Trail. “Visitors can have the full James B. Beam experience,” the company noted. Parent firm Suntory Global Spirits emphasized the move supports meeting customer needs amid facility improvements. Discussions with the union regarding workforce utilization during the transition remain ongoing, with no specific details released on potential job impacts.
The Clermont plant produces Jim Beam along with other brands including Knob Creek, Baker’s, Booker’s and Basil Hayden. This decision arrives as Kentucky’s $9 billion bourbon sector contends with oversupply and reduced demand. U.S. Treasury Department data indicate American whiskey production fell to 142 million proof gallons through August 2025, down 55 million proof gallons from the prior year, marking the lowest output since mid-2020 pandemic levels. Monthly production dipped below 14.5 million proof gallons in July 2025, reflecting broader industry contraction.
Factors contributing to the slump include tariffs on exports, oversupply from prior boom years, and shifting consumer preferences, such as declining interest among younger demographics like Generation Z who favor non-alcoholic options. Kentucky distilleries hold a record 16.1 million barrels in inventory, exacerbating the imbalance. While the company did not explicitly link the pause to these trends, the statement referenced ongoing assessments of 2026 volumes to match demand.
Jim Beam, established in 1795 by Jacob Beam, has operated in Clermont since the 1930s post-Prohibition, becoming a cornerstone of the bourbon trail that attracts over 2 million visitors annually to Kentucky sites. The brand, acquired by Suntory Holdings in 2014 for $16 billion, represents a significant portion of global whiskey sales, with the Clermont facility accounting for about one-third of output. Upgrades during the pause may focus on efficiency, such as modernizing equipment for better energy use or expanding capacity, though specifics were not disclosed.
Kentucky’s bourbon economy supports 23,100 jobs and generates $359 million in annual taxes, but recent challenges have prompted similar adjustments industry-wide. For instance, export declines in categories like American whiskey dropped 13 percent in the first half of 2025, influenced by international tariffs and economic slowdowns. Distillers face rising costs, including a 27 percent increase in state barrel taxes for 2025, totaling $75 million, up 163 percent over five years.
In Southern Maryland, the craft distillery scene offers a contrast, emphasizing small-batch production with local ingredients. Tobacco Barn Distillery in Hollywood, St. Mary’s County, crafts bourbon from estate-grown corn, operating as one of few single-farm producers in the U.S. Founded by veterans, it produces about 10,000 cases annually, leveraging sustainable practices like solar and geothermal energy. Southern Trail Distillery in Mechanicsville sources local grains for its whiskeys, contributing to regional agriculture. Fordham Lee Distillery revives Maryland’s pre-Prohibition rye whiskey heritage, blending traditional methods with innovation.
Maryland once led U.S. rye production before 1920, with distilleries in Baltimore and rural areas. Today’s growth in craft spirits, supported by state laws easing distribution since 2015, positions local makers to potentially benefit from national slumps by appealing to consumers seeking unique, regionally sourced products. While no direct ties link Kentucky’s pause to Maryland operations, industry observers note that oversupply could pressure prices, aiding smaller distilleries in competitive markets.
Bourbon production involves fermenting a mash of at least 51 percent corn, distilling to no more than 160 proof, and aging in new charred oak barrels. Pauses like this allow for maintenance without halting maturation of existing stocks, which require years to reach market. Kentucky’s climate accelerates aging, contributing to the state’s dominance, producing 95 percent of global bourbon.
As demand evolves, companies like Suntory adapt, with the Clermont upgrades aimed at long-term efficiency. The pause underscores broader shifts in the spirits sector, where sustainability and consumer trends increasingly influence decisions.