The James B. Beam Distilling Co., maker of Jim Beam bourbon products, plans to suspend distilling operations for the entirety of 2026, according to media reports.

Multiple news outlets have reported the development, including CBS News. Beam, owned by a subsidiary of Suntory Holdings, told the news outlet that it would use 2026 to make “site enhancements” and that the grounds will remain open to the public for tours and other attractions.

This news comes during a difficult time for the spirits industry. Studies have shown that the number of people who consume alcoholic beverages is at a 90-year low, while spirits exports fell sharply in the wake of the Trump administration’s widespread tariffs on spirits. Exports to Canada in particular have suffered, as Canadian retailers have removed U.S. spirits products from shelves.

CNN reported that Kentucky has an all-time record amount of aging whiskey in stock, with 16.1 million barrels in storage, citing figures provided by the Kentucky Distillers’ Association.

Despite the shutdown at Beam’s main operation, distilling reportedly will continue at at the Fred B. Noe craft distillery in Clermont and the Booker Noe distillery in Boston (Ky.). 

“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026,” Beam said in a statement provided to CNN over the weekend

CNN reported that Suntory employs more than 1,000 people in Kentucky, and that no layoffs have been announced as of yet. However, the news agency reported that, while bottling and warehousing will continue at the main distillery, Beam will continue talks with the United Food and Commercial Workers union while evaluating how the shutdown might affect employees.

Read more: Alcohol Consumption Continues to Fall, per Gallup Poll