Known as one of the largest producers of American Whiskey, Jim Beam has announced that it will halt production at its Clermont facility from January 1. The pause is expected to last through 2026, with the company adjusting amid a challenging industry situation.
Clermont Jim Beam Distillery to Suspend Operations Through 2026
Jim Beam produces several big names, including Knob Creek, Baker’s, Booker’s, and Basil Hayden’s. The brand plans to shift operations to another facility, while continuing to operate the Fred B. Noe Craft Distillery and Booker Noe plant, according to the Lexington Herald Leader.
While distillation will remain on pause at the Clermont facility, bottling and warehousing operations will continue on site. The Jim Beam American Stillhouse visitor center will remain open through 2026, the outlet noted.
In a statement to the Lexington Herald Leader, the company pointed out that the team met to discuss the volumes for 2026. The company said it is also taking the opportunity to invest in site enhancements.
Slowing Exports Impacted US Spirits
The Kentucky Distillers’ Association has reported that bourbon inventories have reached a record 16.1 million barrels statewide. This has led many distilleries to adjust their production timelines.
The report noted that the distillers in Kentucky are paying $75 million in aging barrel taxes this year. That figure shows a jump of 27% from 2024 and a massive 163% rise over the past five years. Kentucky remains the only jurisdiction globally that imposes a tax on spirits while they age in barrels. The broader context also indicated a decline in exports amid tariff imposition.
According to the American Distilled Spirits Exports 2025 Mid-Year Report, exports of US spirits fell by 9% in comparison with last year in the second quarter. With unresolved tension in global trade, the report noted that International consumers appear to be leaning towards substitutes, including domestic alternatives or imports from other countries.
By halting distillation at Clermont, Jim Beam plans to align its spirit production with market conditions.
