In a significant move for the Bourbon industry, Suntory Global Spirits' James B. Beam Distilling Co. announced that it will suspend distillation at its flagship Clermont, Kentucky facility for the entirety of 2026.

Among the largest Bourbon distilleries in Kentucky, Jim Beam claimed the position of the world's best-selling world whisky, according to the Brand Champions 2024.

A spokesperson for the distillery said: “We’ve shared with our teams that while we will continue to distil at our Freddie Booker Noe craft distillery in Clermont and at our larger Booker Noe Distillery in Boston (Kentucky), 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."

The site will continue to operate its bottling and warehousing activities, as well as continue to run its visitor centre, which annually hosts more than 100,000 guests.

The production pause at Clermont aligns with a sharp downturn in the U.S. whiskey market. Recent data from the Treasury Department highlights a significant contraction: through August 2025, American distillers produced approximately 142 million proof gallons, representing a massive 28% decline of 55 million proof gallons from last year.

According to the Kentucky Distillers’ Association (KDA), the state's warehouses currently hold an all-time high of 16.1 million aging barrels, which represent an immediate and growing financial liability.

Kentucky is the only place in the world that levies an ad valorem property tax on aging spirits. In 2025 alone this tax will amount to US$75 million, a staggering 163% increase over the past five years.

Suntory itself reported a 2.4% decline in sales for its alcohol business in the first half of 2025, as demand fell in the U.S. and Europe.

Kanpai!

88 Bamboo Editorial Team