Jim Beam halts production, as whiskey market struggles

"Jim Beam, the country's largest maker of bourbon, has announced a one-year pause in production at its flagship facility in Clermont, Kentucky, a stunning move that underlines the immense challenges facing the U.S. whiskey industry after more than two decades of rapid growth. The decision by the brand, owned by Japanese conglomerate Suntory Holdings, is the latest in a series of production cuts, layoffs and financial crises across the wine, beer and spirits sector, which has seen sales drop by about 5% over the past year, sector,"

"The situation will likely get worse as 2025 draws to a close. At the end of October, MGP Ingredients, which distills whiskey on contract for other brands, reported a 19% drop in sales for the third quarter. In September, the global drinks company Diageo paused distillation at its Cascade Hollow facility in Tullahoma, Tennessee, which produces George Dickel Tennessee whiskey."

Jim Beam will halt distillation at its Clermont, Kentucky flagship facility for all of 2026, pausing roughly one-third of the company’s annual production from an estimated 26.5 million gallons. Production will continue at two other Kentucky distilleries, and the Clermont bottling facility and visitor center will remain open, while worker arrangements were not disclosed. The pause follows a broader downturn across wine, beer and spirits, with sector sales down about 5% in the past year. Other producers have reported steep sales declines, paused distillation, layoffs and receiverships, signaling weakening demand in the whiskey market.

Read at Boston.com