The maker of the iconic Jim Beam bourbon whiskey says it will halt production at its main site for all of 2026.

BBC News reports that the company said in a statement on December 21 it would close its James B. Beam Distilling Co. distillery in Clermont, Kentucky, until it took the “opportunity to invest in site enhancements.”

In October, the Kentucky Distillers' Association (KDA) trade body said the amount of bourbon in warehouses across the state was at a record high of more than 16 million barrels. In the latest statement, Jim Beam said, "We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026.”

According to the association, the barrels of bourbon, which are taxed by the state, have cost distillers "a crushing" $75 million this year.

U.S. distillers have faced retaliatory import taxes on their goods after Trump's so-called "Liberation Day" announcement in April saw the U.S. imposing tariffs on most countries around the world, said the Guardian. Trade tensions between the U.S. and Canada have also affected sales, with most Canadian provinces boycotting American spirits earlier in the year, although some have since relented.

Read More: Canadian Provinces to Sell Remaining Stockpiles of American Liquor

In August, the Toasts Not Tariffs Coalition, a group of 57 associations representing the entire three-tier chain of the U.S. alcohol industry and related industries, sent a letter to President Donald J. Trump urging that "fair and reciprocal tariff-free trade" for spirits and wine products be included in the final agreement between the U.S. and EU.

The brand is owned by Japanese drinks giant Suntory Global Spirits, which employs more than 1,000 people across its sites in Kentucky.

The firm said its other operations in the state, including a separate distillery and its bottling and warehousing plants, would continue to run next year. The visitor center in Kentucky also remains open.