A victim of changing consumer tastes and the trade war with Canada, Jim Beam will pause for a year production of its eponymous bourbon whiskey at its flagship distillery in Clermont, Ky., starting Jan. 1.
A number of media reported the shutdown, with Associated Press saying the company would use the time “to invest in site enhancements” in the building. James B. Beam Distilling Co. is owned by Japan's Suntory Holdings.
While Beam did not give a reason for the shutdown, the pause comes amid several challenges in the wine and spirits industry, Associated Press reported. Americans overall are drinking less, with Gallup finding that the share of U.S. adults who consume alcohol has fallen to 54%, near a 90-year low.
Plus, exports of U.S. spirits fell 9% in the second quarter, partly due to the impact of the Trump administration's tariffs, according to an October report from the Distilled Spirits Council of the United States cited by AP. Exports to Canada were particularly hard hit, declining by 85% during the period, after Canadian retailers pulled U.S. spirits from shelves in retaliation for President Trump's tariffs.
About the Author
Dave Fusaro
Editor in Chief
Dave Fusaro has served as editor in chief of Food Processing magazine since 2003. Dave has 30 years experience in food & beverage industry journalism and has won several national ASBPE writing awards for his Food Processing stories. Dave has been interviewed on CNN, quoted in national newspapers and he authored a 200-page market research report on the milk industry. Formerly an award-winning newspaper reporter who specialized in business writing, he holds a BA in journalism from Marquette University. Prior to joining Food Processing, Dave was Editor-In-Chief of Dairy Foods and was Managing Editor of Prepared Foods.