Jim Beam to close one of its distilleries for a year
Kentucky bourbon giant shifts operations to another facility while investing in Clermont site enhancements
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World-famous Kentucky whiskey brand Jim Beam is reportedly closing its production facility in Clermont starting Jan. 1 through the end of 2026. The company is shifting production to its larger Booker Noe distillery in Boston, Kentucky.
The James B. Beam Distilling Co. said in a statement that it is "always assessing production levels to best meet consumer demand." It added that there was a recent discussion of its 2026 volumes.
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Barrels of bourbon are stacked in a barrel house at the Jim Beam Distillery on Feb. 17, 2020, in Clermont, Kentucky. (Bryan Woolston/Getty Images / Getty Images)
"We’ve shared with our teams that while we will continue to distill at our FBN 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," the company said in its statement.
"We continue to assess how best to utilize our workforce during this transition, and conversations with the union are ongoing," it added.
Tourists looking to explore the Kentucky Bourbon Trail will still be able to go to the visitors center at the James B. Beam campus, which will remain open despite the production pause, "so visitors can have the full James B. Beam experience," the company wrote. It added that its restaurant, The Kitchen Table would also remain open during this time. Additionally, bottling and warehousing will still be operational at the Claremont facility, the Lexington Herald Leader reported.
The entrance of the James B. Beam distillery in Clermont, Ky., on Monday, July 25, 2022. (Luke Sharrett/Bloomberg via Getty Images / Getty Images)
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Jim Beam's parent company, Suntory Global Spirits, said the pause would allow it to keep up with customer demands while making upgrades to the Clermont facility, according to WDRB. The outlet also noted that in addition to Jim Beam, the Clermont facility produces Knob Creek, Baker's, Booker's and Basil Hayden's.
Bottles of the American whiskey Jim Beam are offered for sale in a liquor store on Nov. 27, 2023 in Chicago, Ill. (Scott Olson/Getty Images / Getty Images)
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Kentucky's $9 billion bourbon industry is grappling with a massive supply and a slump in demand, according to the Lexington Herald Leader. The outlet had previously reported that whiskey production had dropped to its lowest level in years, citing data from the Treasury Department. However, it is unclear if this is a reason behind Jim Beam's decision to make upgrades to and pause production at its Clermont facility.
FOX Business reached out to Jim Beam for comment.