The liquor sector in the United States has experienced a significant decrease in sales in Canada due to increased local consumption and the removal of foreign liquor from their market as a result of the ongoing trade conflict. Recent data released jointly by the Distilled Spirits Council of the United States and Spirits Canada reveals a sharp 66.3% reduction in U.S. spirits sales in Canada from March 5 to April 30, compared to the same time period the previous year.
This substantial fall in consumption coincides with several Canadian provinces’ decision to take American alcoholic beverages off their shelves on March 5. This decisive action was a response to the protectionist policies and rhetoric of U.S. President Donald Trump, including threats of increasing tariffs and even mentions of annexation.
The statistics between March 5 and the end of April also show a slight decrease in the sales of Canadian-made spirits, although at a much smaller rate of 6.3%. Additionally, there was a dip in the sales of spirits imported from other countries, with an 8.2% decrease.
Spirits Canada and the Distilled Spirits Council of the United States noted a total decrease of 12.3% in the sale of spirits within Canada during this same timeframe. They expressed concern over these significant shifts in the centrally intertwined North American spirits market.
“The sudden and sustained withdrawal of all U.S. spirits products from Canadian markets has profound implications for the spirits producers on both sides of the border,” stated Cal Bricker, CEO and President of Spirits Canada. Bricker emphasized the essential need for open, fair trade practices that ensure mutual benefit for consumers, businesses, and government revenues across both nations.
Several U.S. manufacturers voiced criticism regarding the decision of numerous provinces to remove U.S. alcohol from their shelves. Among them was Lawson Whiting, the CEO of Brown Forman, the company that produces Jack Daniel’s. Whiting described this action as “worse than a tariff.”
Data compiled by Spirits Canada and the Distilled Spirits Council shows that the total sales of spirits plummeted by 20% compared to the previous year in March. However, in April, there was a slight resurgence in Canadian spirits sales, with a rise of 3.6%, and a similar trend was observed for spirits imported from other countries with an increase of 3.7%.
Despite these small improvements, the gains were insufficient to offset the stark losses that resulted from the removal of U.S. spirits. Compared to the same period last year, the overall sales of spirits still registered a decline of 3.3% throughout April, representing a loss of roughly CAD 13.9 million.
Surveys conducted several months into the trade war imply that Canadians continue to shun U.S. goods and avoid traveling to the U.S., with some indicators even suggesting an increase in such behavior. According to an Ipsos poll commissioned exclusively by Global News and released ahead of Canada Day, approximately 72% of Canadians have been purposely avoiding goods manufactured in the U.S.
The poll results further indicated that the backlash against the U.S. was not just economic: 77% of the respondents admitted to having a diminished perception of the U.S. as a nation due to Trump’s aggressive stance against Canada’s economic stability and national sovereignty.
David Eby, the Premier of British Columbia, responded to the sentiments expressed in the poll by encouraging his province’s residents to continue prioritizing local sourcing and domestic tourism. Eby urged British Columbians to double down on their efforts to buy locally and travel within Canada.
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