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Key Facts

  • ✓ Jim Beam will pause production at Clermont, Kentucky distillery for one year starting 2026.
  • ✓ Exports of US spirits declined 9% in Q2 2025, with major markets like Canada, EU, UK, and Japan performing poorly.
  • ✓ Domestic whiskey sales grew 132% from 2003 to 2023 but fell 1.1% in 2024 due to high prices.
  • ✓ Gallup survey shows 53% of Americans view moderate drinking as bad for health, with drinking rates at 54% in 2025.
  • ✓ Canada halted US alcohol imports in March 2025 amid trade tensions, leading to 62% sales drop for Brown-Forman's whiskey.

Quick Summary

Jim Beam will suspend bourbon production at its Clermont, Kentucky distillery for one year, effective in 2026.

This pause reflects ongoing evaluations of production to match consumer demand, as stated by Suntory Global Spirits.

The decision highlights broader difficulties in the distilled spirits industry, including sharp export declines and falling domestic consumption.

Key markets like Canada and the EU have seen significant drops, exacerbated by trade issues, while US trends show reduced drinking amid health awareness.

Jim Beam's Production Decision

Jim Beam, established nearly 230 years ago, confirmed the temporary halt at its flagship Clermont, Kentucky distillery.

The pause will last one year, focusing on aligning output with projected 2026 volumes.

A spokesperson for Suntory Global Spirits noted that production levels are regularly assessed to meet consumer needs.

The company maintains operations at its Boston, Kentucky distillery and is engaging with union representatives regarding the change.

Clermont produces several popular products, including Knob Creek bourbon and Old Overholt Rye Whiskey.

"We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026."

— Suntory Global Spirits spokesperson

Declining Exports in Key Markets

Trade Tensions and Market Performance

The distilled spirits industry faces substantial export challenges, with the EU, Canada, UK, and Japan representing 70% of 2024 spirits exports.

In Q2 2025, overall exports dropped 9%, contributing to double-digit losses across categories like American whiskey, brandy, vodka, and cordials.

Canada experienced a severe decline after halting US alcohol imports in March amid trade tensions with the Trump administration.

Exports to the UK and Japan fell more than 23%, while EU shipments decreased by 12%.

Impact on Whiskey Producers

The international market holds particular importance for American whiskey makers dealing with stagnant domestic sales and high inventory.

Chris Swonge, CEO of the Distilled Spirits Council, expressed concern over consumers in these markets favoring local spirits or non-US imports.

  • Canada's net sales for Brown-Forman's American whiskey portfolio declined 62% in the six months to October 2025.
  • Trade disputes have accelerated the shift away from US brands.
  • Export reliance underscores vulnerability for producers like Jim Beam.

Shifting Domestic Consumption Trends

US whiskey sales reached 31 million nine-liter cases by 2023, a 132% increase from 2003 levels, according to the Distilled Spirits Council of the United States.

However, sales slipped 1.1% in 2024 due to elevated prices and economic pressures on consumers.

Challenges intensified in 2025, with demand for most alcoholic products trending downward, except for ready-to-drink beverages.

Growing interest in sobriety plays a role, alongside the rise of recreational cannabis and weight loss drugs potentially reducing alcohol appeal.

A Gallup survey from August 2025 revealed that 53% of Americans consider moderate drinking—one or two drinks daily—harmful to health.

Self-reported drinking rates have declined steadily: 62% in 2023, 58% in 2024, and 54% in 2025.

Broader Industry Implications

The suspension at Clermont exemplifies pressures on historic American spirits brands like Jim Beam and Jack Daniel's.

Brown-Forman reported volumetric declines driving the sharp Canadian sales drop, mirroring wider export woes.

High inventory levels and stagnating sales force producers to adjust capacities, as seen in this production pause.

The Distilled Spirits Council highlights the critical need for international markets amid domestic shifts.

  • Consumers increasingly prioritize health, impacting traditional spirits demand.
  • Alternative products like cannabis gain traction, altering beverage preferences.
  • Trade barriers threaten long-term export recovery for US whiskey.

These factors signal a pivotal moment for the industry, requiring adaptation to evolving global and local dynamics.

Looking Ahead for American Spirits

The one-year pause at Jim Beam's Clermont distillery underscores the multifaceted challenges confronting the American distilled spirits sector.

With exports faltering and domestic habits changing, brands must navigate trade uncertainties and consumer health trends.

Continued operations at other facilities offer some stability, but sustained recovery depends on addressing these pressures.

As the industry adapts, the resilience of icons like Jim Beam will be tested in this evolving landscape.

"There's a growing concern that our international consumers are increasingly opting for domestically produced spirits or imports from countries other than the US, signaling a shift away from our great American spirits brands."

— Chris Swonge, CEO of the Distilled Spirits Council