Japanese beverage giant Suntory's U.S. unit will pause whiskey production at its Jim Beam distillery in Kentucky for all of 2026 due to slumping demand and oversupply. The move follows U.S. trade tensions from President Donald Trump's tariffs. The company plans to invest in site improvements during the halt, while other operations continue.
Suntory Global Spirits, the U.S. arm of Japanese beverage giant Suntory Holdings, announced on December 23 that it will pause distillation of its bourbon whiskey Jim Beam for all of 2026 at the James B. Beam distillery campus in Clermont, Kentucky. The decision stems from weakening consumer demand and an oversupply of whiskey, exacerbated by trade disputes from high tariffs imposed by U.S. President Donald Trump's administration.
During the production halt, the company will invest in enhancements to the site. However, whiskey production will continue at the smaller Fred B. Noe craft distillery in Clermont and the Booker Noe facility in Boston. Bottling, warehousing, the visitor center, and restaurant at the main campus will remain operational. Jim Beam, which employs about 6,000 people worldwide, did not announce any layoffs.
The bourbon industry in Kentucky faces broader challenges. As of January, there were a record 16.1 million barrels of bourbon aging in state warehouses, according to the Kentucky Distillers’ Association, though most will not be ready for bottling until after 2030. Factors include restrained consumer spending, rising health awareness reducing alcohol consumption, uncertainty over Trump's tariffs and taxes on aging barrels, and a boycott of U.S. whiskeys in Canada.
Suntory acquired Beam Inc., now Suntory Global Spirits, for 1.6 trillion yen in 2014. Separately, the parent company is dealing with the aftermath of CEO Takeshi Niinami's resignation in September amid a police investigation into illegal cannabis-based supplements.
