Bourbon maker Jim Beam halts Kentucky manufacturing amid ongoing commerce tensions

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Pour one out for Jim Beam.

The maker of one of many U.S.'s most iconic bourbon whiskies is halting manufacturing at its flagship distillery in Kentucky for all of 2026 amid the continued challenges and pressure confronted by the U.S. liquor business — a part of the fallout from Trump's commerce battle.

In a press release offered to CBC Information Monday, the James B. Beam Distilling Co. confirmed that "we plan to pause distillation at our fundamental distillery on the James B. Beam campus for 2026 whereas we take the chance to spend money on web site enhancements."

"We're all the time assessing manufacturing ranges to finest meet shopper demand and just lately met with our crew to debate our volumes for 2026," the assertion says.

The corporate stated it's going to proceed to distill at its smaller FBN craft distillery, which makes experimental manufacturers, and at its Booker Noe distillery in Boston, Ky. The corporate may even nonetheless bottle and warehouse inventory at its flagship location in Clermont, Ky.

The primary Clermont distillery produces a couple of third of the corporate’s annual output, in line with the New York Instances. Native Kentucky media report that the Clermont campus additionally produces Knob Creek, Baker’s, Booker’s and Basil Hayden’s.

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Canadians are speeding to purchase stockpiles of boycotted U.S. liquor. Davin De Kergommeaux, writer of Canadian Whisky: The Important Moveable Professional, discusses the impression U.S. merchandise are having on Canadian whisky. The corporate did not present a motive for the one-year pause of distilling actions on the one facility. However the transfer coincides with an all-time excessive of bourbon at present getting old in barrels.

In October, the Kentucky Distillers' Affiliation warned that Kentucky had 16.1 million getting old barrels of bourbon in its warehouses, and added that distillers had been caught with a "crushing" $75 million US tab in getting old barrel taxes — a property tax on the worth of barrels of getting old spirits.

Amongst different causes, the commerce affiliation famous that "continued uncertainty over tariffs" have "slashed exports."

85% drop in spirits exported from U.S. to Canada Whisky makers are coping with back-and-forth arguments over tariffs in Europe and in Canada.

Again in February, provinces pulled hundreds of thousands of {dollars}' value of U.S. wine and spirits from retailer cabinets in response to U.S. President Donald Trump’s resolution to impose a 25 per cent tariff on Canadian items.

General exports of American spirits fell 9 per cent within the second quarter of 2025 in comparison with the identical interval final yr, in line with the Distilled Spirits Council of the US. Essentially the most dramatic lower got here in U.S. spirits exports to Canada, which fell 85 per cent within the second quarter, dropping beneath $10 million US.

"Worldwide shoppers seem more and more inclined to substitute U.S. spirits with home options or imports from different nations," the spirits council stated in its October report.

The report added that the worldwide market is particularly crucial for U.S. whisky producers, that are dealing with stagnating home gross sales and record-high stock ranges.

<img loading="lazy" alt="Empty shelves with signs that say "buy canadian instead"" srcset="https://i.cbc.ca/ais/b59dee04-b13f-471f-bf3d-b9353f456c91,1766425261374/full/max/0/default.jpg?im=Crop%2Crect%3D%280%2C0%2C5000%2C3333%29%3BResize%3D805 805w,https://i.cbc.ca/ais/b59dee04-b13f-471f-bf3d-b9353f456c91,1766425261374/full/max/0/default.jpg?im=Crop%2Crect%3D%280%2C0%2C5000%2C3333%29%3BResize%3D1104 1104w,https://i.cbc.ca/ais/b59dee04-b13f-471f-bf3d-b9353f456c91,1766425261374/full/max/0/default.jpg?im=Crop%2Crect%3D%280%2C0%2C5000%2C3333%29%3BResize%3D1280 1280w" sizes="(max-width: 762px) 93.6vw,730px" src="https://i.cbc.ca/ais/b59dee04-b13f-471f-bf3d-b9353f456c91,1766425261374/full/max/0/default.jpg?im=Crop%2Crect%3D%280%2C0%2C5000%2C3333%29%3B" style="aspect-ratio:1.5001500150015001" data-cy="image-img"/> Empty cabinets that had beforehand been stocked with American whisky at a liquor retailer in Vancouver in March. (Ben Nelms/CBC) Saskatchewan and Alberta, which each have privatized alcohol retail gross sales methods, initially pulled their U.S. product when the opposite provinces did however resumed promoting them in June.

Because the finish of October, many provinces have made a few of their U.S. stock accessible once more, particularly merchandise that will be expiring quickly. In some circumstances, the online proceeds are going to native charities.

Most bourbon comes from Kentucky Kentucky produces 95 per cent of the world's bourbon, and greater than half of the Kentucky whisky is Jim Beam, in line with United Meals and Industrial Staff (UFCW) Native 111D, the union that represents staff at Jim Beam's Kentucky distilleries.

In a press release offered to CBC Information, a union spokesperson stated workers within the distillery division are being reassigned inside the firm and there aren't any layoffs at this level.

"The corporate and union are working to make sure there's minimal impression on staff throughout this manufacturing shutdown," the spokesperson stated.

The Kentucky Distillers' Affiliation estimates the business brings greater than 23,000 jobs and $2.2 billion US to the state. Along with commerce woes, the business is coping with decreased shopper spending and slumping demand for a product that wants years of getting old earlier than it's prepared.

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