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American Whiskey Association President and CEO Michael Bilello joins “Mornings with Maria” to discuss the impact of tariffs and changing consumer trends on American whiskey exports.
World famous Kentucky whiskey brand Jim Beam would close its production facility in Clermont from January 1 until the end of 2026. The company is shifting production to its larger Booker Noe distillery in Boston, Kentucky.
The company said in a statement cited by several media outlets that it was “still evaluating production levels to best meet expectations.” consumer demand” He added that there had been a recent discussion about its 2026 volumes.
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Barrels of bourbon are stacked in a barrel cellar at Jim Beam Distillery on February 17, 2020 in Clermont, Kentucky. (Bryan Woolston/Getty Images/Getty Images)
“We have shared with our teams that while we will continue to distill at our FBN craft distillery in Clermont and our larger Booker Noe distillery in Boston, we plan to suspend distillation at our main distillery on the James B. Beam campus for 2026 while taking advantage of the opportunity to invest in site improvements,” the company said in its release.
Tourists looking to explore the Kentucky Bourbon Trail will still be able to visit the James B. Beam Campus Visitor Center, which will remain open despite the production pause, “so visitors can enjoy the full James B. Beam experience,” the company wrote. He added that his restaurant, The Kitchen Table, would also remain open during this time. Additionally, bottling and storage will still be operational at the Claremont plant, the Leader of the Lexington Herald reported.
The entrance to the James B. Beam Distillery in Clermont, Ky., 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 meet customer demands while upgrading its Clermont, according to WDRB. The outlet also noted that in addition to Jim Beam, the Clermont plant produces Knob Creek, Baker’s, Booker’s and Basil Hayden’s.
Bottles of Jim Beam American whiskey are offered for sale at a liquor store on November 27, 2023 in Chicago, Illinois. (Scott Olson/Getty Images/Getty Images)
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Kentucky’s $9 billion bourbon industry is struggling with massive supply and declining demand, according to the Lexington Herald Leader. The point of sale had previously reported that whiskey production had fallen to its lowest level in years, citing Treasury Department data. However, it is unclear whether this was the reason behind Jim Beam’s decision to make improvements and suspend production at its Clermont plant.
FOX Business has contacted Jim Beam for comment.
