Jim Beam shuts down iconic Kentucky distillery for at least a year amid market downturn
A whiskey sour for the distilled spirits industry. Consumers are souring on drinking alcohol. And that’s one of a host of complex reasons why Jim Beam is placing its main distillery in Clermont, Kentucky, on ice for at least a year. Claudia Coffey knows Kentucky bourbon country as well as anyone. She’s a podcaster and bourbon insider. TARIFFS PUSH US WINE INDUSTRY INTO UNCERTAIN TERRITORY: ‘REALLY CREATES A CHALLENGE’ “Bourbon is Kentucky, right? We love horse racing in Kentucky. We love bourbon in Kentucky. It’s the reason that 2.7 million people come to visit the Commonwealth every single year,” said Coffey. “It’s some of the biggest news to come out of Kentucky in quite some time, and this is one of the most iconic brands in bourbon.” Not everyone has heard of Willett or Four Roses when it comes to bourbon. But Jim Beam is Americana. Ubiquitous. Kind of like McDonald’s or Coke. Americans are imbibing less — down 6% from just two years ago. And more than 16 million barrels of Kentucky spirits — including bourbon and rye — are aging in warehouses across the state. Distillers are paying taxes on those barrels while they age. It’s an issue of supply and demand. But the problem is not exclusive to Jim Beam. “It’s not a question of who’s shutting down production,” said Charlie Prince, who runs the Drammers Whiskey Club. “It’s a question of who is admitting it.” Overseas distillers like Midleton in Ireland, which makes Jameson, and Highland Park in Scotland all reduced production recently because of a glut of bourbon, whiskey and Scotch on the market. However, observers say tariffs and the trade war with Canada hit Jim Beam especially hard. “Ten percent of Kentucky bourbon sales were going to Canada, and that has dropped to almost zero,” said Prince. “In Canada, that has been taken on as a kind of a national mission for Canadians, saying, ‘Let’s buy Canadian’ and push back against the politics they don’t like coming from the U.S. And, so, you see stores just pulling all American products and banning them in some provinces. So, that’s definitely a political response.” Democrats quickly latched onto the tariff argument. “Thousands of Kentuckians power the bourbon industry. We will all feel the impact of this,” declared Rep. Morgan McGarvey, D-Ky. “It’s hard to overstate just how devastating Trump’s tariffs are for America’s signature spirit.” RECORD LOW NUMBER OF AMERICANS REPORT DRINKING ALCOHOL, AND NEW TEETOTALERS ARE EXPLAINING WHY But one industry observer believes that tariffs are a single ingredient in a complex economic cocktail. Jessica Spector is a professor at Yale who studies the history and culture of liquor and spirits. “Anybody that tells you that they have an explanation, ‘Oh, it’s tariffs,’ or ‘Oh, it’s post-pandemic retraction,’ is giving you a too simplistic explanation,” said Spector. “It’s unclear what impact the tariffs are having and will have in the future. People have argued over tariffs for a long time. As long as there has been trade, there have been arguments over tariffs. It’s unclear whether the tariffs are sort of the coup de gras to an industry that was already suffering.” Spector says yes, Generation Z drinks less and uses cannabis more. There are also health concerns. But the spirits industry has witnessed shifts before. She says people moved from brown liquor to vodka in the 1970s because it was seen as healthier. “They also jogged more and did a lot more cocaine because that was seen as more health conscious. So, it gets really complicated when you break things down generationally,” said Spector. But the tariffs remain extraordinarily controversial. The Trump administration says tariffs are here to stay. “Tariffs are going to be part of the policy landscape,” United States Trade Representative Jamieson Greer said Fox. “We know they’re successful.” But the tariffs may also evaporate. The Constitution grants Congress the authority to tax and impose tariffs. President Trump used emergency powers to levy global tariffs earlier this year. That’s why this issue wound up at the Supreme Court. Attorneys argued the case in October. “Canada is one of our closest allies. I think it would be hard to find Canada engaging in unfair trade practices because we have what used to be called the NAFTA agreement, between Canada, the United States and Mexico to bring down all the trade barriers between the countries,” said University of California law professor John Yoo. Based on the oral arguments, Yoo believes the high court will halt the Trump-imposed tariffs under the premise that the U.S. faces a national emergency. “Canada will immediately benefit, and you’ll be able to find your choice of American bourbons on Canadian store shelves,” said Yoo. FREEDOM AND FACTS, NOT FEAR, SHOULD FRAME AMERICA’S CHOICES ON ALCOHOL In fact, Yoo believes the Supreme Court could issue its ruling sooner rather than later — especially if it nixes the tariffs. That’s because of all the duties and fees that might be levied on products for months — and then reversed. It’s important to note that Jim Beam will continue operating two other distilleries for the time being. And Spector says Generation Z prefers cocktails. So, that could force the industry to shift what it produces. Now here’s a little tidbit you probably won’t learn any place else. Roam any distillery in Scotland, be it Dalwhinnie in the Highlands, Glen Scotia in Campbeltown, GlenGrant in Speyside or Bowmore on Islay, and you will find distillers aging Scotch in Jim Beam barrels. It’s not just Jim Beam barrels that you will find in Scotland. It’s also Buffalo Trace. Heaven Hill. Woodford Reserve. Wild Turkey. Congress only allows American distillers to use American oak barrels once for producing bourbon. So, Scotch distillers overseas love to get their hands on a good bourbon barrel to age their spirit. The barrels may partially impart a vanilla flavor into the expression, stemming from “vanillans” in the wood. The trend of using American bourbon barrels for Scotch began in
Adams reads his ‘greatest hits’ quotes from coffee mug in farewell tribute as NYC mayor
New York City Mayor Eric Adams took to social media Wednesday to share a unique farewell tribute on his final day in office, reading some of his “go-to quotes” off a coffee mug. “Mayor Adams‘ greatest hits, you know,” he said while waving around an inscribed cup gifted to him by his staff. He then attempted to read some of the quotes aloud, giggling in between each phrase. “‘I wake up in the morning sometimes and look at myself and give myself the finger,’” he read. “‘Stay focused, no distractions, and grind.’ … ‘It’s not what’s in the tweet, it’s what’s in the streets.’ 20% OF NYC MAYOR-ELECT MAMDANI TRANSITION APPOINTEES HAVE ANTI-ZIONIST TIES: ADL “‘There are two types of Americans, those who live in New York and those who wish they could,’” he continued. “‘Arrested, rejected, and now I’m elected.’ ‘I am Gandhi-like.’ ‘I had a shorty that lived out there.’ ‘Every morning I wake up and turn on my GPS, my God positioning satellite.’ … Get your mug, man!” He thanked his City Hall team for the parting gift in an accompanying X post and noted, “It’s been an honor, New York!” Adams was sworn in as the 110th Mayor of New York City Jan. 1, 2022, after serving as Brooklyn borough president and a New York state senator. ADL CHIEF WARNS NYC MAYOR-ELECT ZOHRAN MAMDANI POSES A ‘CLEAR AND PRESENT DANGER’ TO JEWISH COMMUNITY Mayor-elect Zohran Mamdani will be sworn in at midnight Thursday during a private ceremony held in a decommissioned subway station, with a second public inaugural ceremony taking place Thursday afternoon at City Hall. Mamdani, a 34-year-old Ugandan-born socialist, will be the first Muslim mayor of New York City and the first mayor to be sworn in using the Quran, the central religious text of Islam. It is unclear if Adams’ adorned coffee mugs will be listed for sale to the public.
Washington Monument to become ‘birthday candle’ as US marks start of 250th year
The Washington Monument will transform on New Year’s Eve into the “world’s tallest birthday candle in honor of our Nation’s 250th birthday,” according to the national Freedom 250 organization. The monument will be illuminated with projections depicting America’s history, focusing on the American founding and its future, starting at 7 p.m. Eastern Standard Time Wednesday. Likewise, the monument will turn into a 250-foot birthday candle as part of a countdown to 2026. “The illumination of the Washington Monument marks the beginning of a momentous year for our nation — 250 years since the signing of the Declaration of Independence,” Keith Krach, CEO of Freedom 250, said in a press release. “We invite every American — and every friend of America — to join this historic celebration of the triumph of the American spirit.” Freedom 250 is a national, nonpartisan organization President Donald Trump created dedicated to spearheading events to celebrate America’s 250th birthday in 2026, coordinating with the White House and other federal agencies to plan events to commemorate the anniversary. UFC WHITE HOUSE PLANS REVEALED, INCLUDING WEIGH-INS AT LINCOLN MEMORIAL: REPORT The viewing is free and open to the public and will continue through Monday with different projections displayed on the monument each night. Projections will start Wednesday for New Year’s Eve and will continue until just after midnight and will run from 7 p.m. to 10 p.m. Eastern Standard Time on subsequent evenings. Narrated videos that will appear on the monument will focus on discovery, the American Revolution and independence, Western expansion, the Industrial Revolution and the modern times and future for the U.S. The event is designed to serve as the “first signature moment” in a series of events to celebrate the anniversary and will feature a drone and fireworks show on New Year’s Eve, according to Freedom 250. Testing for the event began earlier in December, with previews of the projections visible on the monument. Other events Freedom 250 will hold to remember America’s birthday include a Great American State Fair in June and a parade of ships from more than 30 countries in New York Harbor for the Fourth of July. America250, a nonpartisan commission that Congress created in 2016 to prepare for America’s 250th birthday, also announced that it is commemorating the special year in New York on New Year’s Eve. The group said that, after midnight Eastern Standard Time, the New York City Times Square Ball will be lit up in red, white and blue, and 2,000 pounds of red, white and blue confetti will be released.