Jim Beam to pause production at Clermont distillery amid supply and cost pressures
Dec 22, 2025
BULLITT COUNTY, Ky. (ABC36 NEWS NOW) – Bourbon maker Jim Beam has announced plans to pause production at its main distillery in Clermont, citing a combination of supply concerns and rising costs across the industry.
According to the company, the production pause will take effect on January 1, a
nd reportedly last through 2026.
One of the major factors involves supply. Industry officials say Kentucky now has more than 16 million aging barrels of bourbon stored in warehouses across the state. Those barrels are subject to state taxes, which continue to rise as inventory grows.
A bourbon industry trade group reports distillers paid about $75 million in barrel-related taxes this year, marking a 27 percent increase from last year.
Company officials say broader economic pressures are also playing a role, including higher costs tied to tariffs under President Donald Trump’s trade policies, along with ongoing cost-of-living increases that continue to impact production and operations.
Categories: Featured, Local News, National News, News
Tags: Bourbon Barrel Tax, bourbon production pause, Bullitt County bourbon, clermont distillery, Jim Beam, Kentucky bourbon industry, Kentucky distilleries
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