Company behind Jack Daniel's says Canada's boycott 'significant' as alcohol sales drop

The parent companion of American alcoholic drink producers such as jack up Daniel's whisky and Woodford book bourbon dynasty says sales to Canada dropped 62 per cent during the latest fiscal quarter compared to a year ago, as American alcohol remains off the shelves in many provinces.

After U.S. President Donald Trump imposed tariffs on Canadian goods in early March, a number of provinces retaliated, pulling American alcohol from store shelves. Alberta and Saskatchewan have since lifted the ban.

During a conference call with investors Thursday, officials with Brown-Forman — the parent company of brands such as Jack Daniel's and Woodford Reserve — noted other pressures, but said the boycott is causing a "significant impact."

"While we were encouraged by recent discussions, American spirits products have been off the shelf in Canada for months," said Leanne Cunningham, the chief financial officer for Brown-Forman. "This had a significant impact on our first quarter of fiscal 2026, which will impact our full fiscal year results."

It's unclear how much the 62 per cent drop in sales translates to in dollars, but the company's total sales were down three per cent for the quarter.

On the call, company chief executive officer Lawson Whiting said the trade dispute has created "significant headwinds."

"While our non-U.S. brands such as Diplomatico and El Jimador continued to deliver growth, they were not able to offset the decline of our brands that are produced in the U.S.," he said.

A press release issued by the company said net sales in developed international markets dropped eight per cent because of "macroeconomic and geopolitical uncertainty."

U.S. Liquor producers caught in trade war want tariffs gone

"The decline was led by lower volumes of Jack Daniel's Tennessee Whiskey in Germany and the United Kingdom, along with the absence of American-made alcohol from retail shelves in most of the Canadian provinces," it said.

The decrease was largest in Canada, as the U.K. Only saw a 16 per cent decrease. It was 10 per cent in Germany.

Last week, Prime Minister Mark Carney announced Canada was removing retaliatory tariffs on CUSMA-compliant U.S. Goods, which included 25 per cent on American spirits.

In 2024, Canada was the second-largest market for U.S. Spirit exports, according to the Distilled Spirits Council of the United States.

It welcomed Carney's decision to drop the tariffs, but with a caveat.

"This is a very positive sign, but until all provinces put American spirits back on their shelves it won't have much of an impact," the organization said in a press release this week.

"The unfortunate decision to remove American spirits from Canadian retail shelves is not only harming U.S. Distillers, but it's also needlessly reducing revenues for the provinces, and placing unnecessary burdens on Canadian consumers and hospitality businesses."

The decision to ban American alcohol has meant most Canadian retailers are stockpiling American alcohol.

In Nova Scotia, that's worked out to 587,153 units of product that was property of the Nova Scotia Liquor Corporation, the province's Crown-run alcohol agency.

Reporter

Add some “good” to your morning and evening.

Get the latest top stories from across Nova Scotia in your inbox every weekday.

---

---