The maker of popular Jim Beam bourbon whiskey said it will halt production at its flagship location in Kentucky throughout next year.
She told the BBC in a statement on Sunday that the distillery would remain closed while the company took “the opportunity to invest in site improvements”.
“We are always evaluating production levels to best meet consumer demand and recently met with our team to discuss our 2026 volumes.”
Distilleries in Kentucky – famous for its bourbon – face uncertainty, partly due to US President Donald Trump’s trade policies.
The brand is owned by Japanese beverage giant Suntory Global Spirits, which employs more than 1,000 people across its Kentucky locations.
The company said its other operations in the state, including a separate distillery and bottling and warehousing plants, will continue to operate next year. The Kentucky Visitor Center also remains open.
Jim Beam also said it is evaluating how to use its workforce while production is halted, and is in talks with the labor union.
In October, the Kentucky Distillers Association (KDA) trade body said the amount of bourbon in warehouses across the state was at a A record amount of more than 16 million barrels.
According to the association, bourbon barrels, which are taxed by the state, cost distillers a “crushing” $75 million (£56 million) this year.
American distillers faced retaliatory import taxes on their goods after Trump’s so-called “Emancipation Day” proclamation in April led to the United States imposing tariffs on most countries around the world.
“Most of the expansion over the past decade was directed toward global growth,” the association said last October, calling for “a rapid return to mutual duty-free trade.”
Trade tensions between the United States and Canada have also affected alcohol sales, with most Canadian provinces boycotting American spirits earlier in the year.