(qlmbusinessnews.com . Fri 7th Mar, 2025) London, UK —
Canadian Alcohol Boycott Threatens Jack Daniel's Amid US-Canada Trade Spat
The maker of Jack Daniel's Tennessee Whiskey is raising a glass in dismay as Canadian provinces initiate a boycott of American alcoholic beverages in response to ongoing trade tensions with the United States. Brown-Forman, the spirits giant behind the iconic brand, has expressed concern over the move, branding it “worse than tariffs.”
Ontario, Canada's most populous province, alongside others like Nova Scotia, has begun removing US-produced booze from the shelves of its government-run liquor stores. This action is a direct riposte to the 25% tariffs imposed by the Trump administration on various Canadian goods.
Lawson Whiting, Brown-Forman's Chief Executive, didn't mince words, stating that the blanket removal of products was a “disproportionate” response. “I mean, that's worse than a tariff, because it's literally taking your sales away, completely removing our products from the shelves,” he told reporters.
The Liquor Control Board of Ontario (LCBO), a major player in the global alcohol market, is spearheading the boycott. Premier Doug Ford confirmed that the LCBO, which shifts nearly $1 billion of American alcohol annually, has implemented the ban with immediate effect. As the sole wholesaler in Ontario, the LCBO's decision effectively cuts off supply to other retailers, pubs and restaurants in the province.
Canada has retaliated against the US tariffs with its own 25% levies on American imports, including beer, spirits, and wine.
Despite the setback, Brown-Forman remains relatively confident in weathering the storm. Mr. Whiting noted that Canada accounts for a comparatively small 1% of the company's overall sales.
The LCBO is now encouraging Canadians to “buy Canadian.” Some consumers, fuelled by patriotic sentiment and a desire to support local businesses, were already making the switch.
Prime Minister Justin Trudeau has strongly condemned the US tariffs, branding them “a very dumb thing to do”. He has also voiced concerns over President Trump's comments regarding the annexation of Canada, concerns echoed by Foreign Minister Mélanie Joly.
Washington has also slapped tariffs on Mexico, although there is a temporary reprieve for carmakers in both Canada and Mexico.
The escalating trade war also encompasses allegations regarding the flow of fentanyl from Mexico into the US.
Mr. Whiting said Brown-Forman would be closely monitoring the situation in Mexico, a more significant market for the company, accounting for 7% of its sales last year. The situation remains fluid, and the long-term impact on the alcohol industry remains to be seen.
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