CLERMONT, Ky. – Jim Beam announced it will pause production at its main distillery in Clermont starting January 1. This decision is partly due to supply issues, as Kentucky has more than 16 million aging barrels of bourbon in warehouses.
The state imposes taxes on these barrels, and a state trade group reported that distillers paid $75 million in taxes this year. This marks a 27 percent increase from last year. Despite the pause, no layoffs have been announced.
In addition to the aging barrel issue, tariffs imposed by President Donald Trump and the rising cost of living are affecting the industry. Whiskey and spirit makers have faced retaliatory tariffs resulting from the trade war initiated by the president’s tariffs.
Experts highlight that many individuals are still dealing with higher inflation, leading to a reduction in discretionary spending. This has caused a decline in consumer demand.
