MARK STRASSMANN:
00:00:12
Something sobering has hit the business of Bourbon. Take Jim Beam, bottling success since 1795, the leading seller of bourbon in the world. And yet-- We're pausing distillation here at Clermont.
MARK STRASSMANN:
00:00:28
This six-story tower, the self-proclaimed hardest-working still in America, has gone idle. Bourbon supply suddenly overwhelms Bourbon demand. The pause is in effect for all of 2026? That's correct. And the plan is to get up and running again in 2027? That's the plan. Freddie Noe is the great-great-grandson of Jim Beam and an eighth-generation master distiller here. You don't make whiskey for 230 years without learning a lot of lessons along the way, without seeing a lot of ups and downs. I think this is a part of our story.
MARK STRASSMANN:
00:01:02
Bourbon has to sit to age but move to sell. Right now, Kentucky's distillers have roughly 16 million barrels of bourbon, like these, sitting and aging, and that is a record high. Americans are simply drinking less. US alcohol consumption fell last year to a 90-year low, while the nonalcoholic beer, wine, and spirits category has nearly doubled. I think trends are shifting. Consumers are finding new ways to enjoy products. They're being more mindful with their dollar.
MARK STRASSMANN:
00:01:36
For many distilleries, bourbon's on the rocks. Luca Mariano, AM Scott, and Devils River Distillery all filed for bankruptcy. Do spirits as an industry have reason for concern and worry? Yeah, I think the total alcohol business has some concern, just with consumers shifting some of their drinking habits.
MARK STRASSMANN:
00:01:57
Analyst Kaleigh Theriault tracks the alcohol industry for Nielsen IQ. So if somebody is only having two drinks, you want to make sure you're those two drinks.
MARK STRASSMANN:
00:02:06
Jim Beam's production pause affects only 16 employees. The distillery placed all of them in other jobs. Bourbon is who we are in this area.
MARK STRASSMANN:
00:02:16
We asked this group of residents whether they're worried about the state's $9-billion bourbon industry. This slowing down the production, I don't think that's going to have a huge impact. I don't think the general population is going to know it. I'm not worried about the pause in production because there's so many opportunities out there. And it's a pause, not a stop. Right. Exactly. Yes. It's a pause.
MARK STRASSMANN:
00:02:38
It's a rebalancing industry. Expect winners and losers. My focus is definitely on ensuring that the quality of our whiskey stays where it's been. And with that, I think that will take us where we're supposed to be.
MARK STRASSMANN:
00:02:53
But raising the bar is only part of bourbon's challenge. For CBS Mornings, Mark Strassmann in Clermont, Kentucky.
