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Is The World Going Sober? $830 Million Wiped Of Liquor Stocks, As Jim Beam Halts Output
ByDoug Melville,Contributor.
I cover the intersection of leadership, culture & equity in business.
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Jan 02, 2026, 12:19pm EST
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SHENZHEN, CHINA - APRIL 12: Bottles of Jim Beam Kentucky Straight Bourbon Whiskey, an American-made spirit produced in Kentucky, are displayed for sale on a supermarket liquor shelf, alongside other imported alcoholic beverages, on April 12, 2025 in Shenzhen, China. China has imposed a new round of retaliatory tariffs on U.S. imports, raising duties to 125% in response to the latest escalation by the United States, which increased tariffs on Chinese goods to 145%. The growing trade tensions have further impacted China's export sector, affecting key industries such as logistics, manufacturing, and cross-border e-commerce. The measures are part of Beijing's broader strategy to counter rising economic pressure and defend its trade interests. (Photo by Cheng Xin/Getty Images)... More
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Here is some sobering news.
One of America’s most storied whiskey makers is going silent — at least for a year.
Jim Beam, the 230-year-old Kentucky bourbon icon, will halt production at its main Clermont distillery for all of 2026, marking the first pause in modern history at the flagship site. The move sends shockwaves through Kentucky’s $9 billion bourbon economy — and signals deeper cracks spreading through the global alcohol industry.
The stoppage occurs at the same time as nearly $830 billion has been erased from the market value of the world’s leading beer, wine, and spirits companies over four years, according to a Bloomberg index. The downturn is fueled by a potent mix of trade tensions, oversupply, shifting consumer habits, and mounting health concerns.
A sector once viewed as recession-proof is now asking a sobering question: What if people are simply choosing to drink less?
The Intersection of The Trade War And A Drinking Decline
Jim Beam’s shutdown traces back to a U.S.-Canada trade interruption in early 2025, where Canadian liquor boards abruptly stopped buying American spirits after the U.S. imposed 25% tariffs on Canadian exports. The effects hit quickly: U.S. spirits exports to Canada plunged 85% in Q2 2025, crashing below $10 million.
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For Kentucky distillers — who rely on long-term export contracts — the sudden market freeze was devastating. Bourbon ages slowly. Barrels filled years ago can’t be easily rerouted to new buyers. Instead, they simply piled up, where they are now sitting on a record 16.1 million aging barrels.
For nearly two decades, distillers scaled up aggressively, betting that global demand would keep climbing well into the 2030s. It was a bourbon ‘gold rush’ of sorts. But bourbon’s long aging cycle — often six to ten years — turned the excitement around expansion into a liability.
A grafitto calling to boycott an American wine is seen at a liquor store in Montreal, Canada, on February 3, 2025. US President Donald Trump paused tariffs on Mexico for one month after last-minute talks Monday — but there was no breakthrough yet in negotiations with Canada on an issue that has sparked fears of a global trade war. (Photo by ANDREJ IVANOV / AFP) (Photo by ANDREJ IVANOV/AFP via Getty Images)... More
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Jim Beam’s parent company, Suntory Global Spirits, now faces both excess inventory and weaker demand — forcing the one-year halt at its main U.S. site. Nearly 1,500 Kentucky jobs are tied to operations at that Clermont facility. The company says layoffs aren’t planned. Tours, bottling, and storage will continue, while production will shift to smaller sites. Diageo has also reduced whiskey production in Kentucky, Tennessee, and Texas. Oversupply is industry-wide.
Are Drinking Habits Really Changing? $830 Billion Gone — and Counting
The short answer: yes.In a recent Gallup poll, research shows that drinking is at a record low. Currently, only 54% of U.S. adults are drinking alcohol. That percentage is the lowest figure since the 1930s, when Gallup began tracking this data. That number sat at 62% in 2023 and 58% in 2024.
For the first time, over half of Americans (53%) now consider even moderate drinking harmful for their health. The decline is most pronounced among women (down 11 points) and young adults (down to 50%), with men and older adult drinkers showing decreases too.
People exercise along the waterfront in St. Petersburg, Florida, on December 17, 2025. Tourists and residents walk and run through Vinoy Park, engaging in physical activity along the bayfront. (Photo by Ronen Tivony/NurPhoto via Getty Images)
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Younger consumers, especially Gen Z, are embracing non-alcoholic lifestyles — or choosing cannabis or mocktails and leaning into wellness-oriented alternatives. This is in addition to the rise of GLP-1 weight-loss drugs like Ozempic, of which 1 in 8 adults are currently using, and that reduce appetite and alcohol cravings.
A Bloomberg index tracking about 50 global alcohol companies now sits 46% below its 2021 peak, erasing roughly $830 billion in value.
European powerhouse stocks and holding companies - Diageo, Pernod Ricard, and Rémy Cointreau - have seen their market caps plunge to decade-long lows. Chinese baijiu giant Kweichow Moutai is down over 40% from its high, while brands from Brown-Forman to Treasury Wine Estates in Australia have slumped. In China, government alcohol bans at official events have continued to choke premium spirits sales.
NEW YORK, NEW YORK - OCTOBER 19: A bartender pours Jim Beam during Catch of the Day: A Seafood Feast presented by Modelo hosted by Andrew Zimmern during Food Network New York City Wine & Food Festival presented by Invesco QQQ on October 19, 2025 in New York City. (Photo by Noam Galai/Getty Images for NYCWFF)... More
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Demand for and consumption of alcohol have survived plagues, wars, prohibition, and pandemics. But today’s shift is cultural, and 2026 will be a stress test. As people redefine social life without alcohol at its center and productivity, wellness, and longevity trend higher, this presents the industry’s greatest opportunity to adapt.
