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Pour one out for Jim Beam.<\/p>\n
The maker of one of the U.S.’s most iconic bourbon whiskies is halting production at its flagship distillery in Kentucky for all of 2026 amid the ongoing challenges and strain faced by the U.S. liquor industry \u2014 part of the fallout from Trump’s trade war.<\/a><\/p>\n In a statement provided to CBC News Monday, the James B. Beam Distilling Co. confirmed that “we plan to pause distillation at our main distillery on the James B. Beam campus for 2026 while we take the opportunity to invest in site enhancements.” <\/p>\n “We are always assessing production levels to best meet\u00a0consumer\u00a0demand and recently met with our team to discuss our volumes for 2026,” the statement says.<\/p>\n The company said it will continue to distill at its smaller FBN craft distillery<\/a>, which makes experimental brands, and at its Booker Noe distillery in Boston, Ky. The company will also still bottle and warehouse stock at its flagship location in Clermont, Ky.<\/p>\n The main Clermont distillery produces about a third of the company\u2019s annual output, according to the New York Times<\/a>. Local Kentucky media<\/a> report that the Clermont campus also produces Knob Creek, Baker\u2019s, Booker\u2019s and Basil Hayden\u2019s. <\/p>\n WATCH | U.S. bourbon returns to N.S. shelves: Bourbon whisky among top-selling U.S. alcohol back on N.S. shelves | Hanomansing Tonight<\/p>\n Canadians are rushing to buy stockpiles of boycotted U.S. liquor. Davin De Kergommeaux, author of Canadian Whisky: The Essential Portable Expert, discusses the impact U.S. products are having on Canadian whisky.<\/p>\n The company didn’t provide a reason for the one-year pause of distilling activities at the one facility. But the move coincides with an all-time high of bourbon currently aging in barrels. <\/p>\n In October, the Kentucky Distillers’ Association<\/a> warned that Kentucky had 16.1 million aging barrels of bourbon in its warehouses, and added that distillers were stuck with a “crushing” $75 million US tab in aging barrel taxes<\/a> \u2014 a property tax on the value of barrels of aging spirits.<\/p>\n Among other reasons, the trade association noted that “continued uncertainty over tariffs” have “slashed exports<\/a>.”<\/p>\n 85% drop in spirits exported from U.S. to Canada<\/p>\n Whisky makers are dealing with back-and-forth arguments over tariffs in Europe and\u00a0in Canada.<\/p>\n Back in February, provinces\u00a0pulled millions of dollars’ worth<\/a>\u00a0of U.S. wine and spirits from store shelves in response to U.S. President Donald Trump\u2019s decision to impose a 25 per cent tariff on Canadian goods.<\/p>\n Overall exports\u00a0of American spirits fell nine per cent in the second quarter of 2025 compared to the same period last year, according to the Distilled Spirits Council of the United States<\/a>. The most dramatic decrease came in U.S. spirits exports to Canada, which fell 85 per cent in the second quarter, dropping below $10 million US.<\/p>\n “International consumers appear increasingly inclined to substitute U.S. spirits with domestic alternatives or imports from other countries,” the spirits council said in its October report. <\/p>\n The report added that the international market is especially critical for U.S. whisky producers, which are facing stagnating domestic sales and record-high inventory levels. <\/p>\n Saskatchewan and\u00a0Alberta, which both have privatized alcohol retail sales systems, initially pulled their U.S. product when the other provinces did but resumed selling them in June.<\/p>\n Since the end of October, many provinces have made some of their U.S. inventory available again, especially products that would be expiring soon. In some cases, the net proceeds are going to local charities.\u00a0<\/p>\n Most bourbon comes from Kentucky<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/12\/1766441108_17_default.jpg\")
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Empty shelves that had previously been stocked with American whisky at a liquor store in Vancouver in March. (Ben Nelms\/CBC)<\/p>\n
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