Canadian booze makers face more hurdles at home as US ban takes effect
XLP•A US ban on many Canadian bottled alcoholic beverages took effect as Canadian producers said provincial rules make it difficult to replace lost US sales with domestic ones. Nine of 10 provinces agreed in July to allow direct-to-consumer sales across provincial borders, but not sales on store shelves.
1. Provincial barriers limit sales
Canadian distillers, winemakers and brewers say provincial regulations and alcohol retail monopolies make it difficult to sell across Canada. Black Fox owner John Cote said he lost money on whisky sold at an Ontario event after bureaucratic costs and a three-week approval delay.
2. US ban hits bottled drinks
The US measures ban bottled whisky and most other packaged Canadian alcoholic beverages, while still allowing many bulk, unbottled drinks. Spirits Canada says about half of Canadian spirits production is exported, with 93% of those exports destined for the US.
3. Producers seek reform
A federal government spokesperson said there is “much more to do” to streamline provincial regulations. Glenora distillery owner Lauchie MacLean said a US order was left on the dock after the buyer was deterred by 50% tariffs on certain Canadian exports imposed on August 22; he normally relies on the US for about one third of his sales.
