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RPM

Certifiably Surly
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  1. Jim Beam closes its distillery for 2026. In Trump's America, even Bourbon is heading for the rocks In lore, America is motherhood and apple pie. Close behind is Bourbon — a whiskey that must be made in the US (among other things) to be so called. Its formulation dates back two centuries to the distilled corn mash spirit made in Bourbon County, KY. The whiskey is entwined with moonshining. Which, in turn, underpinned NASCAR's rise. It is as American as the flag. Yet in MAGA America, its sales are declining so badly that Jim Beam will shut down bourbon production at its Clermont, KY., distillery through 2026. That’s not great. However, this production shutdown is a useful symbol of America’s economic doldrums under Trump. MAGA apologists may try to blame the Jim Beam production cut on a general stagnation in distilled spirits sales. In 2024, after decades of significant growth, hard liquor sales volume declined. However, the dollar value of sales increased. In addition, market predictions indicate that liquor sales will grow slowly in the near term. So why is Jim Beam shuttering its main distillery for at least a year? So what’s the truth? The answer is bifurcated. Demand for Bourbon, specifically, has decreased. And Trump’s tariff policies have exacerbated the decline. We could call Jim Beam a victim of the Law of Unintended Consequences. The more direct would say the company FAFOed. The Herald put it thus: The move comes as Kentucky’s $9 billion bourbon industry grapples with a glut of whiskey and a slump in demand at home. In response, the industry has pulled back production by more than 55 million proof-gallons (an industry unit of measurement) or more than 28% through August, the lowest level since 2018. At the same time, exports have been curtailed to major trading partners; Canada has been boycotting American spirits since March in retaliation for President Trump’s ongoing trade war and U.S. whiskey sales to that country are down by more than 60% through October. Other Kentucky companies including Jack Daniel’s Tennessee Whiskey maker Brown-Forman also have announced layoffs or shorter pauses in production earlier in the year. Trump promised that his tariffs would increase American manufacturing. Jim Beam is proof that that promise had the honesty of a typical Trump promise.
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