Jim Beam announces plans to pause production at Kentucky distillery

CLERMONT, Ky. (CNN) – Kentucky bourbon maker Jim Beam has announced plans to pause production at its main distillery in Clermont.

The move will take place on Jan. 1.

Part of the issue involves supply. Kentucky has more than 16 million aging barrels of bourbon in its warehouses.

The state charges taxes on those barrels. A state trade group says distillers paid $75 million for those aging barrels this year. That’s a 27% jump from a year ago.

Besides the aging barrel issue, President Donald Trump’s tariffs and the cost of living also are having an impact.

Whiskey and spirit makers have had to deal with the retaliatory tariffs from the trade war sparked by the president’s tariffs.

Experts say many people are still struggling with higher inflation and are pulling back on discretionary spending.

That has led to a drop in consumer demand.