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Bourbon demand is down and tariffs aren't helping, but distillers keep building

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A Lee Enterprises, Incorporated newspaper. Majority shareholder: David Hoffmann, Hoffmann Media Group.

Special Report Spotlight

BUSINESS

Bourbon demand is down and tariffs aren't helping, but distillers keep building

• Nicholas P. Brown and Emma Rumney REUTERS
• Apr 11, 2026
• Apr 11, 2026 Updated May 29, 2026
• 0

1 of 8

Jim Beam master distiller Freddie Noe holds up a glass of whiskey March 23 at the company's shuttered distillery in Clermont, Ky.

• Eric Cox, REUTERS

Bardstown Bourbon Company is seen March 24 in Bardstown, Ky.

• Eric Cox, REUTERS

Bardstown Bourbon Company CEO Mark Erwin uses a whiskey thief to pour shots March 24 in Bardstown, Ky.

• Eric Cox, REUTERS

Glenn's Creek Distillery owner David Meier works March 23 in Frankfort, Ky.

• Eric Cox, REUTERS

Canton Cooperage Vice President of Operations Melody Pruitt watches the company logo get laser-etched on a barrel March 24 in Lebanon, Ky.

• Eric Cox, REUTERS

Jim Beam worker loads whiskey barrels onto a transport truck March 23 in Boston, Ky.

• Eric Cox, REUTERS

Glenns Creek Distilling is seen March 23 in Frankfort, Ky.

• Eric Cox, REUTERS

A Canton Cooperage worker builds a barrel March 24 in Lebanon, Ky.

• Eric Cox, REUTERS

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Nicholas P. Brown and Emma Rumney REUTERS

Like many whiskey distillers, Heaven Hill Brands rolled back bourbon production this year as demand lags. Yet, as the American spirit faced a tumultuous market in 2025, the Kentucky company built a $200 million distillery in the heart of bourbon country, adding 155,000 barrels of capacity.

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Jim Beam master distiller Freddie Noe holds up a glass of whiskey March 23 at the company's shuttered distillery in Clermont, Ky.

• Eric Cox, REUTERS

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Bardstown Bourbon Company is seen March 24 in Bardstown, Ky.

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Bardstown Bourbon Company CEO Mark Erwin uses a whiskey thief to pour shots March 24 in Bardstown, Ky.

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Glenn's Creek Distillery owner David Meier works March 23 in Frankfort, Ky.

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Canton Cooperage Vice President of Operations Melody Pruitt watches the company logo get laser-etched on a barrel March 24 in Lebanon, Ky.

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Jim Beam worker loads whiskey barrels onto a transport truck March 23 in Boston, Ky.

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Glenns Creek Distilling is seen March 23 in Frankfort, Ky.

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A Canton Cooperage worker builds a barrel March 24 in Lebanon, Ky.

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IrelandUruguay, Eastern Republic ofUzbekistanVanuatuVenezuela, Bolivarian Republic ofViet Nam, Socialist Republic ofWallis and Futuna IslandsWestern SaharaYemenZambia, Republic ofZimbabwe

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