- Bourbon whiskey production at the main Jim Beam distillery in Clermont, KY, will be suspended starting January.
- Suntory Global Spirits will keep the visitors’ center, restaurant, and other nearby facilities open.
- US and EU tariffs have lowered bourbon whiskey exports and production volumes.
- Some spirits production will shift to Suntory Global’s Boston distillery and other local assets.
Distillery Operations Paused
Suntory Global Spirits, owner of the Jim Beam bourbon whiskey brand, will halt production at its flagship Clermont, Kentucky distillery beginning January, per CoStar. The company cites planned site upgrades and weakened global demand resulting from international tariffs as the main reasons.
Despite the suspension, the Jim Beam visitors’ center and restaurant will stay open to the public. Suntory will maintain operations at related facilities in Clermont, Boston, and Shepherdsville.
Tariffs Weigh on Exports
Industry trade disputes have taken a toll on bourbon whiskey exports. After recent US tariffs on European spirits, the European Union retaliated with tariffs on US exports, including bourbon whiskey. This led to increased prices and production dropping below 14.5M proof gallons for the first time since 2020. Weakened global demand has similarly impacted other hospitality-driven sectors, where tourism slowdowns have left many properties facing financial strain.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Suntory Maintains Local Presence
While the main Clermont distillery pauses operations, Suntory Global Spirits will transfer some bourbon whiskey production to its Booker Noe Distillery in Boston, KY. Its Fred B. Noe Distillery and Shepherdsville bottling plant will continue to run as usual, supporting key brands like Knob Creek and Basil Hayden’s.
Industry Outlook
Kentucky remains the global hub for bourbon whiskey, with 127 licensed distilleries. Industry leaders urge an easing of tariffs to support US spirits and hospitality businesses, projecting a rebound if trade barriers are lifted.
