• Jim Beam will halt production at its main distillery in Kentucky starting January 1, 2026.
• The shutdown is aimed at allowing site enhancements while responding to market challenges.
• American spirits exports have declined significantly, particularly to Canada, due to tariffs.
• The pause comes amid decreasing alcohol consumption among U.S. adults.
• Other Jim Beam facilities will remain operational during the production suspension.

Jim Beam has announced a halt in production at its primary distillery located in Kentucky, effective January 1, 2026. The company, owned by Japan's Suntory Holdings, plans to take this time for "site enhancements" to better meet consumer demand, according to BBC and CBS News. The decision has been attributed to ongoing economic challenges faced by the bourbon industry, particularly related to the impact of tariffs and changing consumer habits.

During the production pause, the James B. Beam campus will remain open to visitors, although the distilleries in Boston and other operations will continue their activities. This move is part of a larger strategy as Jim Beam navigates a climate of slumping demand amid high export tariffs, which have seen U.S. spirit exports decline by 9% in the second quarter of 2025, especially affecting sales to Canada, which fell by 85% this year, reports LA Times and CBS News.

Furthermore, the Kentucky Distillers' Association noted that American adults are drinking less alcohol than in past decades, with the overall market showing a decline. This situation has resulted in fewer production volumes, as bourbon requires a minimum aging period of four years, meaning that distillers must plan years ahead, according to LA Times and BBC.