Business

Jim Beam union says distillery employees will be reassigned, no layoffs expected

The union representing employees at Jim B. Beam Distilling Co. doesn’t anticipate layoffs after the distiller said it is pausing part of its whiskey production in Kentucky.

In a statement to the Herald-Leader, a United Food and Commercial Workers spokesperson for Local 111D said the union would continue to work with Jim Beam to “protect jobs and ensure long-term stability for all of our members.”

Jim Beam, one of the largest makers of American whiskey in the world, is planning to shut down production in Happy Hollow in Clermont on Jan. 1.

“The company and union are working to ensure there is minimal impact on workers during this production shutdown,” the spokesperson said. “Employees in our distillery department are being reassigned within the company, and as of now, there are no layoffs.”

The James B. Beam Distilling Co. had nearly 1,500 Kentucky employees last year.

“We are always assessing production levels to best meet customer demand and recently met with our team to discuss our volumes for 2026,” the company said. “We’ve shared with our teams that while we will continue to distill at our (Freddie Booker Noe) craft distillery in Clermont and at our larger Booker Noe distillery in Boston, we plan to pause distillation at our main distillery on the James B. Beam campus for 2026 while we take the opportunity to invest in site enhancements.”

The Jim Beam American Stillhouse, in Clermont could be growing. The state approved tax incentives for potential expansion projects worth almost $165 million.
The Jim Beam American Stillhouse, in Clermont could be growing. The state approved tax incentives for potential expansion projects worth almost $165 million. Charles Bertram cbertram@herald-leader.com

The Clermont distillery in Bullitt County near Bernheim Forest and Arboretum is a major production facility in Kentucky, making the flagship brand as well as Basil Hayden, Knob Creek and others.

While distilling operations are paused, bottling and warehousing will continue in Clermont, the company said over the weekend. The visitors center will remain open, and patrons will still be able to eat at The Kitchen Table restaurant.

Jim Beam’s Clermont and Boston locations are operated by Suntory Global Spirits, which also owns Maker’s Mark. Distilling there is not affected.

Suntory bought Jim Beam in 2014 and since, has invested more than $540 million in its Kentucky facilities that attract more than 100,000 people annually, it said.

Other Kentucky companies, including Jack Daniel’s Tennessee Whiskey maker Brown-Forman, have announced layoffs or shorter pauses in production earlier this year.

The move comes as Kentucky’s $9 billion bourbon industry grapples with a supply in demand at home.

In response, the industry has pulled back production by more than 28% in the first eight months of the year, the lowest level since 2018.

At the same time, exports have been curtailed to major trading partners. Canada has been boycotting American spirits since March in retaliation over President Donald Trump’s ongoing trade war and tariff policies. U.S. whiskey sales to Canada are down by more than 60% as of October.

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Piper Hansen
Lexington Herald-Leader
Piper Hansen is a local business and regional economic development reporter at the Lexington Herald-Leader. She previously covered similar topics and housing in her hometown of Louisville, Kentucky. Before that, Hansen wrote about state government and politics in Arizona.
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