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CTV News
29-06-2025
- Business
- CTV News
Trump trade war: Alcohol sales dropped after provinces pulled U.S. products
An employee removes American wines from an SAQ liquor store in Montreal on Tuesday, March 4, 2025. THE CANADIAN PRESS/Christinne Muschi Alcohol sales are down this year in Canada amid persisting economic uncertainty and a collapse in imports of beer, wine and spirits from the U.S. As U.S. President Donald Trump's global trade war marches on, provincial boycotts of American alcohol have begun to reflect in sales figures -- all amid a third financial crisis in five years for Canadian consumers. The available data show declining sales for alcohol of all kinds this year, compared to the same time in 2024 — down more than $100 million across six provinces in the last quarter alone. 'The consumer is just feeling very fragile,' said CJ Hélie, president of Beer Canada, a trade association for beer makers, in a Thursday interview. 'People are just pulling back on discretionary spending, and we're seeing that big-time. Real softness in the market.' With provincial retailers halting American alcohol purchases and pulling bottles from shelves earlier this year, Statistics Canada (StatCan) data show that in April, roughly $3 million in U.S. wine entered the country, down 94 per cent from $54 million for the same month in 2024. 'We are deeply concerned that U.S. tariffs on imported spirits from Canada and Mexico will significantly harm all three countries and lead to a cycle of retaliatory tariffs that negatively impacts our shared industry,' reads a joint statement from North American spirits industry groups on the eve of the trade war in February. 'Our industries have thrived due to the level playing field established across our borders.' While U.S. beer imports have seen a less pronounced decline, they also make up a fairly small portion of the Canadian market. 'In some cases for generations, some of these iconic American brands have been made in Canada,' Hélie told 'Your Bud Lights, your Michelobs, your Pabsts … they're made in Canada, almost all from Canadian grains, in our plants.' Beer Canada noted in a February release that of all the beer consumed nationwide last year, 88 per cent was made in Canadian breweries. Hélie says that for beer, the trade war's impacts have been most pronounced in the manufacturing process, where aluminum tariffs threaten to make it far more expensive to produce the billions of cans filled at plants each year. '[Brewers] saw this coming; they stockpiled as much as they could,' he said. 'We haven't seen that price spike yet, into the price of beer into the marketplace. But if you're thinking Labour Day, this isn't resolved … it's going to be catastrophic for lots of brewers.' Meanwhile, Canada has historically been the world's number-one buyer of American wines, accounting for roughly a third of the U.S. export market last year. But for the month of April 2025, data compiled by the American Association of Wine Economists shows that figure fell to just four per cent, following the steepest decrease in purchases among America's top 15 buyers. On the other end of the transaction, American wines accounted for one in every five bottles (20 per cent) purchased at Liquor Control Board of Ontario (LCBO) stores in early 2024, but by the same time this year, that proportion had dropped to 15 per cent, losing the U.S. its top spot for import sales. 'Wine firms here in the U.S. thought that a tariff on (imported) goods, including wine from Canada, would be a boon, but it has turned out the other way around,' said Karl Storchmann, executive director of the American Association of Wine Economists, in an interview with BNN Bloomberg last week. 'Canada pulled the plug.' Sales down across Canada Early numbers show declining alcohol sales across provincial retailers. Shortfalls in the opening months of 2025 range from roughly a tenth of a percentage point in New Brunswick, to eight per cent in Newfoundland and Labrador. In Quebec, the liquor control board attributed a recent trend toward lower sales including a $90-million drop last fiscal year at government and specialized network stores to 'changes in customers' shopping habits.' The latest numbers come from the fourth quarter of fiscal 2024-25, which varies by province, but generally ran from January to March, this year. Of the six provinces with available data, Nova Scotia was the only jurisdiction showing increasing sales, though the province's board notes that the total volume sold is still down nearly two per cent between last year and the year before that. Since March, the province says it has held roughly $14 million in U.S. products in storage, rather than selling it, and that sales for products made in Nova Scotia have grown nearly 14 per cent in that time. The Yukon Liquor Corporation told CTV News that U.S. imports made up 3.6 per cent of net sales in the territory between January and May of this year, down from 5.4 per cent for all of 2024. And in British Columbia, where Premier David Eby described his March order to pull U.S. products as a response to "escalating threats from south of the border," wholesale net sales of American alcohol are down three per cent for whisky, 23 per cent for wine and nearly 60 per cent for beer. Meanwhile, according to an emailed statement from the province's Liquor Distribution Branch, this April and May have seen 'increased customer interest and demand for products made in Canada.' While U.S. alcohol remains available under some circumstances, and imports have resumed in parts of the country, a 25 per cent tariff remains in effect on wine, spirits and beer crossing into Canada. The trade war isn't the only factor in decreasing alcohol sales. StatCan notes that, on a per-litre basis, they've been on the decline for years, even before Trump's return to the White House. Between the 2019-20 and 2023-24 fiscal years, alcohol sales revenue only grew by around two per cent annually, on average, even as prices per-bottle have risen, the agency notes. By volume, sales fell 3.8 per cent last year, in what a March release from StatCan called a "historic" drop. 'This was the largest volume decline ever recorded since Statistics Canada began tracking alcohol sales in 1949,' it read. To Hélie, recent declines are a sign that consumers have been reacting to years of economic challenges, from a massive drop in out-of-home dining amid COVID-19 restrictions, to the inflationary spike that followed as customers returned to restaurant tables — what he calls 'menu shock.' 'I'm going to go (from) $80 to $95 (for a night out), but that $95 meant I also had to cut out either the dessert, or the coffee, or the extra beer,' he said. 'We've seen that in the numbers, for sure.' With files from BNN Bloomberg's Jordan Fleguel
CTV News
10-06-2025
- Business
- CTV News
Sask. liquor regulator to resume purchase, distribution of U.S. produced alcohol
Bottles of Bourbon whiskey made in the United States are shown on display at a liquor store in Niles, Ill., Thursday, March 13, 2025. (AP Photo/Nam Y. Huh) The Saskatchewan Liquor and Gaming Authority (SLGA) has confirmed it will resume the purchase and distribution of all U.S. produced alcohol. The provincial Crown says the move will allow it to sell the approximately $3.6 million worth of U.S. products in its distribution centre and resume orders to bring in new stock. 'This change gives Saskatchewan people the option to choose whether they want to buy these products or consider alternatives,' the SLGA said in a statement on Tuesday. 'We encourage supporting Saskatchewan and Canadian products whenever there is an option to do so.' The Crown noted that the federal 25 per cent tariff on U.S. alcohol remains in place. The decision comes after the province announced on March 5 that it would stop purchasing 54 American-branded products as a way to hit back against U.S. tariffs on Canadian energy and goods. Following intense criticism from organizations such as Beer Canada, the province reversed its decision on March 24.
Yahoo
13-03-2025
- Business
- Yahoo
Opening interprovincial alcohol trade could be 'disastrous' for 2 N.L. breweries, unions warn
Union representatives are worried about two major breweries in St. John's if the province joins on with the rest of the country to limit trade barriers on alcohol. (CBC News) Newfoundland and Labrador is the only province not participating in a national deal to allow alcohol to flow more freely across the country — and the unions representing workers at two St. John's breweries say protecting jobs needs to be the priority. The Newfoundland and Labrador Association of Public and Private Employees (NAPE) represents about 60 employees at the Labatt-owned brewery in St. John's. NAPE president Jerry Earle says he's worried that reducing interprovincial trade rules could mean Labatt and Molson Coors would close their breweries in the city. "They can probably reduce their production cost, throw Newfoundlanders and Labradorians out of work, produce beer in southern Ontario and ship it in on a container vessel or on a truck. Sure, they would love it," Earle said in an interview with CBC Radio's The St. John's Morning Show. Last week, Finance Minister Siobhan Coady told reporters that the provincial government is monitoring the deal between the other provinces, and trying to avoid any "unintended consequences" for Newfoundland and Labrador employees. She specifically referenced the breweries owned by Molson Coors and Labatt. The Newfoundland and Labrador Liquor Corporation (NLC) requires beer sold in convenience stores to be brewed within the province — meaning Labatt and Molson Coors have access to that market as long as their breweries stay open. Earle and James Farrell, industrial director at FFAW-Unifor, which represents over 50 employees at the Molson Coors brewery in St. John's, are concerned about the potential elimination of that rule — and the resulting fallout. James Farrell is the industrial director at FFAW-Unifor, which represents over 50 employees at the Molson Coors brewery in St. John's. (Darrell Roberts/CBC) Farrell says he's worried that reducing barriers could mean the local market would become flooded with beer brewed outside the province, and Molson Coors, a multinational company, would no longer have a strong incentive to operate a plant within the province "It'd be detrimental, disastrous, to the local brewing industry in the province," he said. Brewery closures 'not on the table,' says Beer Canada CBC News asked both Labatt and Molson Coors for comment. Labatt has not responded, but Molson Coors referred the request to Beer Canada, a lobbying firm representing some of the biggest breweries across the country — including Molson Coors and Labatt. The organization also represents Quidi Vidi Brewery. CJ Hélie, president of the trade association Beer Canada, says companies are always looking at ways to run more efficiently, but the current discussion around interprovincial trade does not include closing plants in Newfoundland and Labrador. Peter Madden, co-owner of Wooden Walls Distilling, says reducing interprovincial trade obstacles could give his business more access to the market. (Darrell Roberts/CBC) "That's not on the table at the moment," he said. "What they're really talking about is this very limited direct-to-consumer opportunity." Direct-to-consumer sales would allow consumers in one province to buy alcohol directly from a producer in another province. Peter Madden, co-owner of Wooden Walls Distilling in St. John's, says he'd welcome changes that would make it easier for his business to enter new markets. "That would probably be the best outcome, right? That we do remove all interprovincial trade barriers, but we sort of continue with this momentum we have of, like, supporting local and supporting Canadian sort of secondarily," he said. In a statement, NLC spokesperson Tara Haley said the company is monitoring plans in other provinces for direct-to-consumer alcohol sales. Meanwhile, she said the sale of products within Newfoundland and Labrador — including in convenience stores — is part of a bigger discussion. Download our free CBC News app to sign up for push alerts for CBC Newfoundland and Labrador. Sign up for our daily headlines newsletter here. Click here to visit our landing page.
CBC
13-03-2025
- Business
- CBC
Opening interprovincial alcohol trade could be 'disastrous' for 2 N.L. breweries, unions warn
Newfoundland and Labrador is the only province not participating in a national deal to allow alcohol to flow more freely across the country — and the unions representing workers at two St. John's breweries say protecting jobs needs to be the priority. The Newfoundland and Labrador Association of Public and Private Employees (NAPE) represents about 60 employees at the Labatt-owned brewery in St. John's. NAPE president Jerry Earle says he's worried that reducing interprovincial trade rules could mean Labatt and Molson Coors would close their breweries in the city. "They can probably reduce their production cost, throw Newfoundlanders and Labradorians out of work, produce beer in southern Ontario and ship it in on a container vessel or on a truck. Sure, they would love it," Earle said in an interview with CBC Radio's The St. John's Morning Show. Last week, Finance Minister Siobhan Coady told reporters that the provincial government is monitoring the deal between the other provinces, and trying to avoid any "unintended consequences" for Newfoundland and Labrador employees. She specifically referenced the breweries owned by Molson Coors and Labatt. The Newfoundland and Labrador Liquor Corporation (NLC) requires beer sold in convenience stores to be brewed within the province — meaning Labatt and Molson Coors have access to that market as long as their breweries stay open. Earle and James Farrell, industrial director at FFAW-Unifor, which represents over 50 employees at the Molson Coors brewery in St. John's, are concerned about the potential elimination of that rule — and the resulting fallout. Farrell says he's worried that reducing barriers could mean the local market would become flooded with beer brewed outside the province, and Molson Coors, a multinational company, would no longer have a strong incentive to operate a plant within the province "It'd be detrimental, disastrous, to the local brewing industry in the province," he said. Brewery closures 'not on the table,' says Beer Canada CBC News asked both Labatt and Molson Coors for comment. Labatt has not responded, but Molson Coors referred the request to Beer Canada, a lobbying firm representing some of the biggest breweries across the country — including Molson Coors and Labatt. The organization also represents Quidi Vidi Brewery. CJ Hélie, president of the trade association Beer Canada, says companies are always looking at ways to run more efficiently, but the current discussion around interprovincial trade does not include closing plants in Newfoundland and Labrador. "That's not on the table at the moment," he said. "What they're really talking about is this very limited direct-to-consumer opportunity." Direct-to-consumer sales would allow consumers in one province to buy alcohol directly from a producer in another province. Peter Madden, co-owner of Wooden Walls Distilling in St. John's, says he'd welcome changes that would make it easier for his business to enter new markets. "That would probably be the best outcome, right? That we do remove all interprovincial trade barriers, but we sort of continue with this momentum we have of, like, supporting local and supporting Canadian sort of secondarily," he said. In a statement, NLC spokesperson Tara Haley said the company is monitoring plans in other provinces for direct-to-consumer alcohol sales. Meanwhile, she said the sale of products within Newfoundland and Labrador — including in convenience stores — is part of a bigger discussion.
