In a rising tide of trade tensions, Brown-Forman, the distributor behind Jack Daniel's, has decried Canada’s recent decision to pull US alcohol from its shelves as "worse than tariffs".
Jack Daniel's Decries Canada's US Alcohol Ban Amid Trade Tensions
Jack Daniel's Decries Canada's US Alcohol Ban Amid Trade Tensions
Brown-Forman's CEO criticizes Canada’s alcohol ban in retaliation for US tariffs, calling it a significant blow to sales.
The international conflict escalated this week with several Canadian provinces, most notably Ontario, enacting measures to remove US-made alcoholic beverages in response to the Trump administration's 25% tariffs on Canadian goods. This move by the Liquor Control Board of Ontario (LCBO), one of the world's largest alcohol retailers, came as a shock to the US beverage industry.
Brown-Forman's CEO Lawson Whiting expressed his dismay over this action, labeling it "disproportionate" and a more severe blow than the tariffs themselves, given that it effectively eliminates their products from retail availability. Whiting noted that while Canada comprises only 1% of the company's total sales, the implications of these decisions reverberate through the industry.
“If you think about it, that’s worse than a tariff, because it’s literally taking your sales away, completely removing our products from the shelves,” he stated. Ontario Premier Doug Ford confirmed the LCBO's decision, which he stated affects nearly $1 billion worth of US alcohol sales annually.
The LCBO is Ontario's exclusive wholesaler for alcohol, meaning local retailers and restaurants can no longer restock US products. Many Canadians are already shifting towards domestic goods, partially due to the ongoing tariff impacts. Meanwhile, Prime Minister Justin Trudeau denounced the US tariffs as "a very dumb thing to do" and accused President Trump of attempting to undermine the Canadian economy.
As the trade conflict continues, Brown-Forman will keep a close watch on how these measures affect their market in Mexico, which accounted for 7% of their sales, as the company navigates these tumultuous waters of international trade policy.
Brown-Forman's CEO Lawson Whiting expressed his dismay over this action, labeling it "disproportionate" and a more severe blow than the tariffs themselves, given that it effectively eliminates their products from retail availability. Whiting noted that while Canada comprises only 1% of the company's total sales, the implications of these decisions reverberate through the industry.
“If you think about it, that’s worse than a tariff, because it’s literally taking your sales away, completely removing our products from the shelves,” he stated. Ontario Premier Doug Ford confirmed the LCBO's decision, which he stated affects nearly $1 billion worth of US alcohol sales annually.
The LCBO is Ontario's exclusive wholesaler for alcohol, meaning local retailers and restaurants can no longer restock US products. Many Canadians are already shifting towards domestic goods, partially due to the ongoing tariff impacts. Meanwhile, Prime Minister Justin Trudeau denounced the US tariffs as "a very dumb thing to do" and accused President Trump of attempting to undermine the Canadian economy.
As the trade conflict continues, Brown-Forman will keep a close watch on how these measures affect their market in Mexico, which accounted for 7% of their sales, as the company navigates these tumultuous waters of international trade policy.
