Jack Daniel’s Maker Calls Canada’s U.S. Alcohol Ban ‘Worse Than a Tariff’
Big news in the world of trade and spirits—Jack Daniel’s maker, Brown-Forman Corp., is pushing back after several Canadian provinces decided to pull U.S. liquor off their shelves. And according to their CEO, Lawson Whiting, this move is more damaging than tariffs.
So here’s the deal. Canada has been retaliating against U.S. tariffs imposed during the Trump administration. As part of their response, Canadian provinces have taken American liquor off store shelves, including popular brands like Jack Daniel’s. And Whiting isn’t happy about it. He made it clear during a recent earnings call that this is a “disproportionate response” and goes beyond the impact of traditional tariffs. His reasoning? A tariff still allows a company to sell its products, even at a higher price. But this? This completely removes them from the market.
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Now, let’s put this into perspective. Canada accounts for just about 1% of Brown-Forman’s total sales. So while this move stings, it’s not exactly a crippling blow. In fact, the company’s stock price actually went up 8% after they reaffirmed their annual forecasts, showing confidence in their ability to weather the storm. That being said, they’re keeping a close eye on Mexico, which makes up 7% of their sales—just in case similar actions start happening there.
This situation also highlights a broader challenge for Brown-Forman. The company has been facing slowing demand in key markets like the U.S., Canada, and Europe. On top of that, they’ve been implementing cost-cutting measures, including workforce reductions, to adjust to this new reality. Analysts see these moves as part of a larger struggle within the spirits industry, where shifting consumer habits and economic uncertainty are making things tougher.
Despite the turbulence, Brown-Forman is still projecting net sales growth between 2% and 4% for fiscal 2025. But with ongoing trade tensions and a volatile global market, the company is bracing for more headwinds.
So, what’s next? Will Canada reconsider its stance, or will the trade dispute continue to escalate? For now, American whiskey lovers in Canada might have to look a little harder to find their favorite bottle of Jack.
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