Jim Beam, the largest bourbon producer in the U.S., will halt production for a full year at its flagship distillery in Clermont, Kentucky, beginning Jan. 1, as the whiskey industry faces slumping demand,

Jim Beam, the country’s largest maker of bourbon, has announced a one-year pause in production at its flagship facility in Clermont, Ky., a stunning move that underlines the immense challenges facing the American whiskey industry after more than two decades of rapid growth.

Jim Beam will halt production at its main Kentucky distillery starting Jan. 1 as the bourbon industry faces a record surplus.