The maker of Jim Beam Bourbon whiskey is halting production at its distillery near Louisville, Kentucky, indefinitely, while it upgrades portions of its facilities and as President Donald Trump’s trade war has reduced global demand.
Suntory Global Spirits plans to cease operations at its primary facility, the James B. Beam distillery in Clermont, starting in January “to invest in site enhancements,” company spokesperson Allison McEneaney said in an emailed statement to CoStar News. She declined to provide details of the nature of the site improvements.
The Japanese-owned company, formerly known as Beam Suntory, said it would continue to operate other production facilities on its main campus in Clermont and in nearby towns. A visitors’ center and restaurant at the primary Jim Beam distillery are also expected to remain open.
“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026,” McEneaney said.
After Trump imposed tariffs this year on European and British imports of spirits and wines, the European Union responded with tariffs on U.S. spirits exports, according to the Toasts Not Tariffs Coalition, an alcohol industry trade group. Higher prices have cut demand, with monthly bourbon whiskey production dropping below 14.5 million proof gallons in July, the lowest level since 2020, according to the U.S. Treasury Department.
“Restoring permanent zero-for-zero tariffs for U.S. and EU spirits, many of which can only be produced in their country of origin, would not only strengthen U.S. hospitality businesses but also ease cost pressures for U.S. consumers,” Chris Swonger, CEO of the Distilled Spirits Council, said last month.
Virtually all of the world’s supply of bourbon whiskey is made in Kentucky, with 127 licensed distilleries operating in the state. The majority are located near Louisville and Lexington, according to the Kentucky Distillers’ Association.
Other facilities operated by Suntory Global near the main Jim Beam campus that will remain operational include:
- Fred B. Noe Distillery in Clermont, Kentucky.
- Booker Noe Distillery in Boston, Kentucky.
- Bottling plant in Shepherdsville, Kentucky.
- Warehouses in Clermont, Kentucky.
Some spirits production now handled at the James B. Beam Distillery is to be shifted to the Boston distillery during the shutdown. In addition to its flagship Jim Beam brand of bourbon whiskey, other spirits made by Suntory Global in Kentucky include Knob Creek, Booker’s and Basil Hayden’s.