A recent report from the U.S. highlights a significant decrease in liquor purchases by Canadians from the United States. According to the Distilled Spirits Council of the U.S. (DSC), transactions plummeted by 85% in the second quarter of this year, resulting in less than $10 million in sales volume.
The DSC expressed concern over this trend, attributing it to a shift away from American products that is negatively impacting its members. The Wine Growers Association of BC (WGBC) views this decline as a natural outcome of the ongoing trade war.
Jeff Guignard, CEO of WGBC, empathized with affected American industries and stated that Canadians are expressing their dissatisfaction with the trade war through their purchasing choices. Despite the lifting of retaliatory tariffs on U.S. spirits in September, several Canadian provinces still do not carry American liquor on their shelves.
Guignard suggested that Canadians may be discovering and favoring new domestic spirits and wines during this period. He predicted a lasting shift in consumer preferences towards Canadian products.
Apart from Canada, other major markets like Japan, the UK, and Europe also saw declines in U.S. liquor imports. DSC CEO Chris Swonger emphasized the interconnected nature of the spirits sector and called for the removal of tariffs by President Trump to mitigate the industry-wide consequences.