Marketplace Morning Report Jim Beam freezes production at its main Kentucky distillery
Dec 22, 2025
Surinjana Tiwari, a BBC reporter specializing in global business, discusses Jim Beam's year-long production halt due to tariffs and declining consumer demand. She highlights the challenges faced by the distillery and shifting drinking habits among younger consumers. Meanwhile, John Reid, Senior Market Strategist at the World Gold Council, explores gold's remarkable price surge and its outlook into 2026, linking the demand for precious metals to recent political decisions and expected interest rate cuts.
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Tariffs And Demand Break Jim Beam
- Retaliatory tariffs and weaker consumer demand forced Jim Beam to halt production for all of next year.
- Surinjana Tiwari explains trade uncertainty left distillers unable to plan and with excess inventory.
Aging Barrels Add A Hidden Cost
- Aging inventory and state taxation on older barrels worsen Jim Beam's cost pressures.
- Surinjana Tiwari notes Kentucky holds many ageing casks taxed higher by the state.
Younger Drinkers Are Drinking Less
- Broader shifts in consumer behaviour are reducing alcohol consumption, especially among younger people.
- Surinjana Tiwari links lower drinking to cultural change and squeezed wallets.