Jim Beam to Temporarily Halt Operations at Main Distillery from January 1

Jim Beam, the famous bourbon producer, has announced it will temporarily cease operations at its primary distillery located in Kentucky, starting the first day of the new year.

As a part of its strategy to upgrade facilities, Jim Beam, owned by a subsidiary of Japan's Suntory Holdings, informed CBS News via email that production at the Clermont, Kentucky site will be on hold. However, visitors can still visit the James B. Beam campus during this period.

While the main distillery pauses, Jim Beam will maintain operations at its Fred B. Noe distillery, also in Clermont, along with the Booker Noe distillery located in Boston, Kentucky.

This production hiatus occurs as the spirits industry faces numerous obstacles. American drinking habits have shifted, with recent Gallup data revealing that alcohol consumption has dropped to 54% among U.S. adults, approaching a historic low spanning nine decades.

The industry has also been grappling with a downturn in international sales of U.S. spirits, declining by 9% in the second quarter, largely attributed to the impact of tariffs from the previous U.S. administration. Canadian markets were notably affected, with an 85% reduction in exports during this timeframe, following Canadian retailers' decision to remove American products from their shelves in response to those tariffs.

As of August, the production of whiskey saw a significant decrease, with distillers reporting 55 million fewer proof gallons produced compared to the previous year, equating to a 28% reduction according to the Lexington Herald-Leader. A proof gallon refers to one U.S. gallon of liquid that contains 50% alcohol by proof.