Latest news with #DistilledSpiritsCouncil
The Herald Scotland
2 hours ago
- Business
- The Herald Scotland
Scotch whisky hopes rise after Trump pledges to talk tariffs
The threat of further damage to Scotch whisky exports has hung heavily over the industry since April, when the President slapped a 10% baseline tariff on UK goods entering the US, and it is not surprising. Shipments of single malt Scotch whisky to the US are understood to have been hit by around £600 million by a 25% import tariff during the first Trump presidency, and the second wave of tariffs has already sent shockwaves across a sector already reeling from a downturn in global demand. Diageo, Scotland's biggest producer of Scotch whisky, has felt the impact as much as anyone in the sector, warning in May that US tariffs could hit profits by $150 million per year. Tariffs have compounded an already challenging global trading picture for the Johnnie Walker maker which has seen it – and other major distillers - grapple with 'geopolitical and macroeconomic volatility' in the wake of the coronavirus pandemic. It was unenviable set of circumstances that ultimately contributed to Diageo parting company with chief executive Debra Crew earlier this month. Read more: Today's talks between Mr Trump and Sir [[Keir Starmer]] will naturally cover a wide range of topics, with the crises in Gaza and Ukraine likely to be at the top of the agenda. But the pledge to discuss tariffs has been seized upon by the Scotch Whisky Association and its US counterpart the Distilled Spirits Council of the United States, given the close ties between distillers here and those across the Atlantic. Industry figures have been hoping that both Sir Keir and Scotland's First Minister John Swinney would emphasise the 'symbiotic relationship' between Scotch and the American bourbon sector during their meetings with the US President this week. [[Whisky]] distillers here are expected to import more than $1.2 billion of ex-bourbon casks for maturing Scotch over the course of Mr Trump's current term. Mark Kent, chief executive of the Scotch Whisky Association, and Chris Swonger, chief executive of the Distilled Spirits Council of the United States said in a statement: "The President's commitment this afternoon to look at the tariffs on Scotch whisky ahead of his meeting with the Prime Minister is very welcome. "The Scotch whisky and US whiskey industries are close partners, and we stand shoulder to shoulder on the issue of tariffs, calling for a permanent return to zero for zero trade which has driven the success of our industries. 'We look forward to the delivery of a deal which secures zero tariff trade for our products on both sides of the Atlantic." A breakthrough on US tariffs would provide a further boost to the Scotch whisky industry following the signing last week of a free trade agreement between the UK and India. The deal is expected to bring about a significant increase in Scotch whisky exports to India through a reduction in import tariffs. Jean-Etienne Gourgues, chairman and chief executive of Chivas Brothers said: 'Signature of the UK-India FTA is a sign of hope in challenging times for the spirits industry. India is the world's biggest whisky market by volume and greater access will be an eventual game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine's.'
CNBC
7 hours ago
- Business
- CNBC
European wine and spirits makers urge 0% tariffs as EU-U.S. deal leaves sector in the dark
European wine and spirit makers are viewing their exclusion from the newly-etched U.S.-EU trade deal with caution as industry bodies call for a sector specific carve-out. European Commission President Ursula von der Leyen said Sunday that a framework deal imposing 15% tariffs on EU goods imported to the U.S. did not contain any decision regarding the wine and spirits industry, adding that an agreement for the sector would be examined in the coming weeks. An industry-wide reprieve would provide much-needed relief for the spirits sector, which has been under pressure amid waning consumer spending and shifting consumption habits. Spirits stocks Pernod Ricard, Remy Cointreau, Diageo and Davide Campari ticked moderately higher early Monday on hopes of a carve-out, before uncertainty seeped in, paring gains. Brewers — which are typically less impacted by tariffs given their localized production — traded lower, after Heineken posted better-than-expected first half results but pointed to softening consumer sentiment in the U.S. and Europe. The Comité Européen des Entreprises Vins (CEEV), which represents the European wine industry, called for the sector to be included in the final list of products covered in a proposed zero-for-zero tariff arrangement. "[We] are watching with great anticipation the outcome of the upcoming negotiations regarding the list of products that will be included under the 0-for-0 tariff arrangement, among them some agricultural products" said Marzia Varvaglione, president of CEEV, in a Sunday statement. "We truly believe the trade of wine is of great benefit for both EU and U.S. companies," she added. Under the new U.S.-EU trade deal, a mutual zero tariff rate has been agreed for certain strategic products, including "all aircraft and component parts, certain chemicals, certain generics [drugs], semiconductor equipment." Discussions around other exclusions, meanwhile, remain underway. Chris Swonger, CEO and president of the U.S.'s Distilled Spirits Council, similarly said that he was hopeful for an industry-wide reprieve. "We are optimistic that in the days ahead this positive meeting and agreement will lead to a return to zero-for-zero tariffs for U.S. and EU spirits products," Swonger said in a statement. Alcohol is one of the EU's leading exports to the U.S., accounting for around 9 billion euros ($10.5 billion) in 2024, according to Eurostat data. The U.S., meanwhile, exported 1.2 billion worth of spirits alone to the 27-country bloc in 2024, Distilled Spirits Council data shows. European spirit makers have posted several consecutive quarters of weak sales as the sector has been caught in the crosshairs of trade tensions, while a post-Covid slowdown has suppressed spending. Verushka Shetty, equity analyst at Morningstar, said uncertainty around tariffs would weigh on drinks makers in the near-term, even as firms plan mitigating measures such as price hikes. "We expect a negative impact on margins across our spirits coverage, however we expect the impact to be limited with pricing actions," he wrote in a note. CEEV, meanwhile, forecast that any move to impose tariffs would force European wine makers to increase prices and could "eject" some EU companies from the U.S. market entirely. According to CEEV, the U.S.' previous 10% broad-based tariffs on EU imports, imposed during President Donald Trump's 90-day tariff pause, led to an approximate 12% decline in turnover for wine producers. "While producers may absorb part of the increase to lessen the impact on consumers, this approach is not always feasible or effective," CEEV Secretary General Dr Ignacio Sanchez Recarte told CNBC via email.
Global News
6 days ago
- Business
- Global News
U.S. liquor sales have dried up in Canada amid trade war, industry says
The U.S. spirits industry is reporting a big drop in sales in Canada after multiple provinces pulled liquor off shelves and Canadians turned to buying more goods at home in response to the trade war. A joint press release by Spirits Canada and the Distilled Spirits Council of the United States shows that from March 5 until April 30, sales of U.S. spirits in Canada fell by 66.3 per cent compared with the same period last year. Multiple provinces pulled American alcohol off the shelves on March 5 in response to U.S. President Donald Trump's tariffs and his talk of annexing Canada. From March 5 until the end of April, Canadian spirits sales also declined, but at a lower rate of 6.3 per cent. Other imported spirits declined by 8.2 per cent. The two groups said total spirit sales in Canada dropped 12.3 per cent during the same period. Story continues below advertisement 'The North American spirits sector is highly interconnected, and the immediate and continued removal of all U.S. spirits products from Canadian shelves is deeply problematic for spirits producers on both sides of the border,' said Cal Bricker, president and CEO of Spirits Canada. 'The current disruption demonstrates the critical importance of maintaining open, reciprocal trade relationships that benefit consumers, businesses and government revenues in both nations.' Some American makers criticized the decision by the provinces to pull U.S. liquor off shelves at the time, with Jack Daniel's maker Brown Forman's CEO Lawson Whiting calling the move 'worse than a tariff.' Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'I mean, that's worse than a tariff, because it's literally taking your sales away, (and) completely removing our products from the shelves,' he said on a post-earnings call. 1:56 Cautious optimism after inter-provincial alcohol trade announcement According to Spirits Canada and the Distilled Spirits Council, total spirits fell sharply by 20 per cent year over year in March. Story continues below advertisement Canadian spirits sales increased 3.6 per cent in April, with other imported spirits up 3.7 per cent, but the gains didn't compensate for the losses from U.S. removal. Compared with last year, overall spirit sales remained down 3.3 per cent in April, a decline of $13.9 million. Chris Swonger, president and CEO of the Distilled Spirits Council, said in the joint release that U.S. liquor should be back on Canadian shelves and that the move is 'needlessly reducing revenues for the provinces and hurting Canadian consumers and hospitality businesses.' 'Mean and nasty' — or doubling down? Months into the trade war, Canadians seem to show no signs of letting up on avoiding U.S. goods and travel — in fact, numbers have grown. Ipsos polling conducted exclusively for Global News and released in time for Canada Day showed that 72 per cent of Canadians are avoiding U.S.-made goods. Story continues below advertisement The polling also showed that 77 per cent of respondents think less of the U.S. as a country because of Trump's attacks on Canada's economy and sovereignty. Trump's ambassador to Canada told a Washington state audience on Monday that the president sees Canadians as 'mean and nasty' for refusing to travel to the U.S. and pulling American alcohol. 'That's their business — I don't like it, but if that's what they want to do, that's fine. They want to ban American alcohol; that's fine. It doesn't necessarily send real positive signals in terms of their treating us well,' Pete Hoekstra told the Pacific NorthWest Economic Region Foundation. 'There are reasons why the president and some of his team refer to Canada as being mean and nasty to deal with, OK, because of some of those steps.' Hoekstra went on to say he has no problem getting U.S. liquor into Canada, as border officers don't check his vehicle when he crosses the border. British Columbia Premier David Eby, in response to Hoekstra's comments, urged his province's residents to double down on their efforts to buy and travel within Canada.
National Post
6 days ago
- Business
- National Post
Sales of U.S. spirits in Canada plunge 66%, industry groups say
The spirits industry says Canada's response to the U.S.-instigated trade war has led to sharply lower sales of booze from the U.S., as well as lower sales overall. Article content In a joint release, Spirits Canada and the Distilled Spirits Council of the United States says U.S. hard alcohol sales dropped 66 per cent in the March 5 to April 31 period compared with a year earlier. Article content Article content It says that sales of Canadian and imported spirits were also down, leading to a 12.8 per cent total decline in spirit sales for the nearly two-month stretch compared with last year. Article content The statistics come as several Canadian premiers stand firm on buy Canadian, and push back against comments made by U.S. ambassador to Canada Pete Hoekstra who told a conference Monday that U.S. President Donald Trump thinks Canada is 'nasty' to deal with, in part because of bans on American alcohol. Article content Article content B.C. Premier David Eby said Hoekstra's remarks show Canadians' efforts to stand up to Trump are 'having an impact,' and he encouraged people to 'keep it up.' Article content
Miami Herald
23-04-2025
- Business
- Miami Herald
Popular liquor brand files for Chapter 11 bankruptcy
The U.S. spirits industry is warning that tariffs on spirits would further curtail industry growth after a year when revenues declined. The industry maintained its market share but had a decline in revenues last year, the Distilled Spirits Council of the U.S. reported in its annual economic briefing in February. Spirits supplier sales declined 1.1% in 2024, totaling $37.2 billion, but volumes rose by 1.1% to 312.2 million 9-liter cases. Don't miss the move: Subscribe to TheStreet's free daily newsletter The spirits industry, however, maintained its market share lead for the third straight year with a 42.2% share of the alcoholic beverage market in 2024. Related: Struggling whiskey company closes operations, no bankruptcy yet "While the spirits industry has proven to be resilient during tough times, it is certainly not immune to disruptive economic forces and marketplace challenges, and that was definitely the case in 2024," Chris Swonger, CEO of the Distilled Spirits Council, said. Despite volumes rising and the spirits industry maintaining its leading market share, several spirits companies have filed for bankruptcy over the last year. Colorado-based Lee Spirits Co., a distiller of premium gin, vodka and liqueurs, on March 8, 2024, filed for Chapter 11 bankruptcy after shutting down all operations four days earlier, including its Colorado Springs tasting room, Brooklyn's on Boulder Street. Montana Distillery, which produces a dozen varieties of vodka, gin, and whiskey, on April 29, 2024, filed for Chapter 11 bankruptcy four years after relocating to another city to hopefully cut expenses and survive. Huge vodka distiller Stoli USA on Nov. 27, 2024, filed for Chapter 11 bankruptcy after financial distress led to a default on $78 million in secured debt owed to Fifth Third Bank NA. Spirits distillers continued filing for bankruptcy in 2025, as well. Craft spirits producer Boston Harbor Distillery, which makes whiskey, rum. gin, liqueurs, and distilled beer, filed for Chapter 11 bankruptcy protection on March 31, 2025, seeking to reorganize its business. Shortly after that filing, popular high-end whiskey brand Westward Whiskey filed for Chapter 11 bankruptcy on April 6 to reorganize its business, facing significant liquidity popular craft liquor brand Dashfire LLC, which manufactures a variety of spirits, canned cocktails, coffee liquors, cocktail bitters, and THC coolers, filed for Chapter 11 bankruptcy protection to reorganize its business. Related: Another popular whiskey brand files for Chapter 11 bankruptcy Dashfire and two affiliates listed up to $50,000 in assets and $1 million to $10 million in debts in its Subchapter V petition, filed on April 22 in the U.S. Bankruptcy Court for the District of Minnesota. More bankruptcies: Popular restaurant and bar chain files for Chapter 11 bankruptcyPopular athletic shoe chain files for Chapter 11 bankruptcyAward-winning cosmetics brand files for Chapter 11 bankruptcy The debtor did not list a specific reason for filing for bankruptcy in its petition. The Minneapolis-based spirits manufacturer's creditors include JGS Management LLC, which is related to its lease; the Internal Revenue Service; the Minnesota Department of Revenue; Live Oak Banking Co.; and the U.S. Small Business Administration. Dashfire was established in 2013 by founder Lee Egbert focusing on cocktail bitters, then expanding into cocktails, spirits and coffees. Its barrel-aged bitters include 21 different flavors, including its signature Dashfire Vintage Orange Bitters. The distiller's spirits include Orange Bourbon Liqueur and Elegant Elderflower Liqueur, while its ready-to-drink canned cocktails feature 12 varieties, including Old Fashioned, Manhattan, Martini, Martinez, El Presidente, White Russian, Classic Negroni, Espesso Martini, Bramble, Florida Mule, Salty Dog, and Margarita. Dashfire's coffee liquors include Rum Golden Latte, Bourbon Cold Brew Coffee, and Rum Cafe Mocha. Its THC coolers include Dark Cherry & Juniper Bramble THC Cooler and Spicy Passion Fruit Margarita THC Cooler. Related: Popular whiskey brand files for Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
