Jim Beam (The World's #1 Bourbon) to ‘Pause Distillation’ at James B. Beam Distilling Co. for 2026 while Investing in Site Enhancements

James B. Beam Distilling Co. - Entryway to The Homestead on Happy Hollow Road, Clermont, Kentucky

The news of a pending ‘Dry January’ arrived early at James B. Beam Distilling Co. in Clermont, Kentucky, as the No. 1 selling bourbon manufacturer in the world is ‘pausing’ production at its flagship Jim Beam distillery for all of 2026.

2025 has been a tough year for distilled spirits. Sales are down and bankruptcies are on the rise. Two major distilled spirits industry groups have reported the declines throughout the year for both small craft distilleries and large heritage distilleries.

Established in 1795, the James B. Beam Distilling Co. has seen the rise and fall of American whiskey for more than 230 years. The distillery was there before it was shut down by Prohibition, it was there during the shut down for the war efforts, it was there during the dark days when brown spirits fell out of favor for white spirits, it was there during the Covid-19 hyper boom sales cycle when liquor stores were declared ‘essential businesses” and shelves were often bare and consumers were standing in line willing to pay top dollar for limited-edition brown spirits.

‘The Hardest Working Still in America’
to Shut Down in 2026 (for Now)

Now, the post-Covid pendulum is swinging back the other way and distilled spirits sales across the board are sliding. There are many reasons for concern from changes on personal preferences, less alcohol consumption from the younger crowd, less spending money in our pockets, suppressed appetites with so many people on weight control GLP-1 drugs, the increase in legalization of medicinal and recreational marijuana, and on-again, off-again tariffs. Toss on top of that the threats from the former U.S. Surgeon General that was recommending changing the recommended consumption rate from two alcohol drinks per day for men and one for women to zero based on the possibility of a connection with an increase in seven types of cancer. His words earlier in 2025 immediately sent stock prices of global beer, wine, and spirits brands down about 3%. There are currently no plans to change the recommendations but that could change at any time. Other than all that, things are good.

James B. Beam Distilling Co. - The Hardest Working Still in America, 65' Tall Column Still — James B. Beam Distilling Co. – The Hardest Working Still in America, 65′ tall column still.

Fred B. Noe Distillery - 55 Foot Tall by 24 Inch Column Still — James B. Beam Distilling Co. – The Hardest Working Still in America, 65′ tall column still.

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Who Owns the James B. Beam Distilling Co.?

The James B. Beam Distilling Co. along with several other brands including Maker’s Mark Distillery, were sold to Suntory in 2014 for $16 billion. Soon after the acquisition, the parent company changed its name to Beam Suntory. In early 2024, the company changed its name again to Suntory Global Spirits. The last 10-years since the acquisition has been marked by massive growth across the board, including growing from a $2.5B company to a $5.5B global spirits company and building a global workforce of 6,000+ employees in 27 countries, with products sold in more than 70 countries.

Suntory Global Spirits Sees Headwinds for Jim Beam Bourbon

James B. Beam Distilling Co. parent company sent out a statement that sent shockwaves through the spirits world. Suntory announced it was all but ceasing distilling at its Jim Beam Distillery that was renamed back to its original name James B. Beam Distilling Co. in 2021.

To be clear, it’s not all bad news and it’s a little unclear since the message indicates part of the shutdown ‘may’ be to retool. That said, Beam has a sister plant less than 10 miles away that just went through a $400 million upgrade. The other thing to point out is that yes, the ‘Hardest Working Still in America’ may be taking a break but let’s remember too that the James B. Beam Distilling Co. just went through an extensive renovation and the new Fred B. Noe Distillery just opened in 2021. The main still that will be going dark for 2026 is a “legacy 65’ column still” while the new Noe still is a 55’ tall x 24” column still. So, to be clear, overall distillation volume will be reduced but, distillation will not completely stop at Beam’s Clermont, Kentucky location.

The Official ‘Pause’ Statement from the
James B. Beam Distilling Co.

“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026. We’ve shared with our teams that while we will continue to distill at our Fred B. Noe Craft Distillery in Clermont and at 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. Our visitor center at the James B. Beam campus remains open so visitors can have the full James B. Beam experience and join us for a meal at The Kitchen Table.

We employ more than 1,000 people across our Kentucky sites.”

The other part that is clear as mud is the phrase, “while we take the opportunity to invest in site enhancements.” A pessimist will expect the worst in that statement while the optimist thinks, “Hey, maybe they’ll come out stronger than ever after ‘site enhancements’. There was also no clarity what would happen to the people that work on the distillation line at the distillery but they could be transferred to the other plant or other jobs withing Beam or nearby Maker’s Mark Distillery.

For the First Time in a Long Time, Distilled Spirits Sales Are Lagging

Fred B.Noe Distillery - Master Distiller Freddie Noe IV — Fred B. Noe Distillery.

James B. Beam Distilling Co. - Master Distillers Fred and Freddie Noe Announce Hardin's Creek Kentucky Straight Bourbon Whiskies — Fred B. Noe Distillery.

In the latest mid-year report from the Distilled Spirits Council of the United States (DISCUS) the numbers for spirits exports are showing a sharp drop. The decline was particularly steep in exports to key markets including the European Union (EU), Canada, United Kingdom (UK) and Japan. The EU accounted for half of all U.S. spirits exports in 2024, and collectively, these four markets represented 70% of total exports by value.

“After celebrating a record year for U.S. spirits exports in 2024, this new data is very troubling for U.S. distillers,” said DISCUS President and CEO Chris Swonger. “Persistent trade tensions are having an immediate and adverse effect on U.S. spirits exports. There’s a growing concern that our international consumers are increasingly opting for domestically produced spirits or imports from countries other than the U.S., signaling a shift away from our great American spirits brands.”

Swonger said nowhere is this shift more pronounced than in Canada, where U.S. spirits exports plummeted 85%, falling below $10 million in the second quarter of 2025. U.S. spirits sales in Canada declined 68% in April 2025 whereas sales of Canadian and other imported spirits rose around 3.6% each.

Canada removed its retaliatory tariff on U.S. spirits on Sept. 1, but the majority of Provinces continue to ban American spirits from their shelves. Canada remains the only key trading partner to retaliate against U.S. spirits.

U.S. spirits exports experienced notable declines across all key international markets. Exports to the EU — the U.S. spirits industry’s largest market — fell 12% to $290.3 million, while exports to the UK dropped 29% to $26.9 million and those to Japan decreased 23% to $21.4 million.

The second quarter data shows double-digit declines across several spirits categories, including American Whiskey (-13%), Vodka (-14%), Rum (-6%), Brandy (-12%) and Cordials (-15%).

Craft Spirits Sales Also Showing a Decline Though Investment Continues

James B. Beam Distilling Co. - 568 Happy Hollow Rd, Clermont, KY 40110 — James B. Beam Distilling Co. – Clermont, Kentucky.

The American Craft Spirits Association’s (ACSA), a registered non-profit trade association representing the U.S. craft spirits industry say that, “In 2024, the U.S. craft spirits category performed in line with the larger spirits market, experiencing its second decline since the creation of this report in 2016. The craft spirits category represented 12.7 million cases (versus 13.5 million in 2023) and $7.58 billion in sales for the year, representing a volume decrease of 6.1% and value decrease of 3.3%.”

On a brighter note the ACSA said that investment, though at a smaller scale, continues. Craft spirits producers continue to reinvest in their businesses, though at a slower rate in 2024. The average amount invested by a craft producer declined from $324,700 in 2022 to $288,900 in 2024. The total investment by all craft producers decreased for the first time, reaching $811 million in 2024.