(NewsNation) — The maker of the popular Jim Beam bourbon whiskey announced it would stop all operations at its Kentucky distillery for all of next year.

In a statement, the James B. Beam Distilling Company said it would close the distillery in Clermont until it took the “opportunity to invest in site enhancements.” The company added that its campus would remain open for visitors during that time.

“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026,” the company said in a statement to NewsNation.

The Fred B. Noe distillery, also located in Clermont, along with its Booker Noe distillery in Boston, Kentucky, will remain open and continue to distill.

The pause comes as U.S. distillers continue to face uncertainty with tariffs imposed by President Donald Trump, rising taxes and declining rates of alcohol consumption in the country. According to a Gallup poll, only 54% of adults surveyed this year said they drink alcohol, a 4-point decrease from 2024.

By comparison, at least 60% of U.S. adults said they drank alcohol in surveys conducted between 1997 and 2023.

Exports of U.S.-produced spirits fell 9% in the second quarter, with exports to Canada being the hardest hit to the industry, declining by 85% during that time, according to a report from the Distilled Spirits Council. Canadian retailers removed U.S. spirits from their store shelves in retaliation for the tariffs.

An October report from the Kentucky Distillers’ Association trade body showed that there was a record number of bourbon barrels in more than 125 distilleries across the state, exceeding 16 million. The KDA warned distillers faced a “crushing” $75 million in taxes on their inventory this year as the state charges tax on ageing barrels of spirits.

Jim Beam also said it was assessing how it would use its workforce while production is paused and was in active talks with its workers’ union.