Pour one out for American bourbon—because the hangover is really starting to hit.
Jim Beam, one of the most well-known names in American whiskey, is stopping production at its main Kentucky distillery for the entire year of 2026.
This big move shows how bad things are getting in the U.S. whiskey market. One-third of Jim Beam’s yearly production is being cut, there’s a lot of extra whiskey stockpiled, and the industry’s fast growth days are over.
For the past 20 years, whiskey was booming, but now that’s all changed.
People hoarded and speculated during the pandemic, leading to too many barrels being filled—around 16 million just in Kentucky. Demand started to drop, and now sales of all kinds of drinks, including beer, wine, and spirits, are going down. Companies are laying off workers, and some distilleries are closing or going into bankruptcy.
Then there’s the impact of Donald Trump’s trade policies.
Trump’s tariffs and unpredictable trade actions have hurt American whiskey exports, especially to Canada, which was a top market.
Exports have dropped nearly 10 percent, and plans to expand globally are on hold as international buyers are scared off by Trump’s unpredictable trade moves. This is hurting big brands like Jim Beam, which sell mass-market, lower-proof bottles that younger people are not buying as much anymore.
Gen Z isn’t drinking like past generations—and when they do, they buy less and pay more for fancy, premium brands.
That’s good for high-end labels like Pappy Van Winkle. But it’s bad for big companies like Jim Beam and Jack Daniel’s, which are now cutting production and jobs.
Experts say this feels really familiar.
The last time bourbon saw this kind of high popularity—back in the Mad Men days—it led to many closures and a long decline. It looks like history is repeating itself.
With too much supply, changing tastes, and a trade war caused in part by Trump’s policies, the American whiskey industry is getting ready for more shutdowns.
Jim Beam’s decision to stop production isn’t just about business—it’s a warning.
For bourbon country, this hurts a lot, and many are pointing to Trump as one of the main reasons for the pain.
Please like, share, and raise a glass to an industry that’s fading away.
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