“Canadian Consumers Shift Away from American Alcohol”

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Martha Reynolds is mindful of the origins of products when shopping, whether it’s at the grocery store or the NSLC in Halifax. She expressed her effort to avoid purchasing American products, particularly switching bourbon for scotch whisky and exploring local options like Nova Scotia wines, Ontario wines, and British Columbia wines. This shift in consumer behavior, combined with some provinces in Canada refraining from selling American alcohol as part of the trade war response initiated by the U.S., has led to significant challenges for American alcohol producers.

Chris Swonger, the President and CEO of the Distilled Spirits Council of the United States, acknowledged the impact of reduced exports to Canada, which declined by 63% last year due to the boycott of U.S. alcohol in many Canadian provinces. The council attributed this decline to the boycott as well as whisky producers rushing shipments to the European Union in late 2024 amid tariff threats. Excluding Canada from the numbers, the council reported a 2.5% increase in spirit exports for the year.

Although the NSLC temporarily removed American alcohol from its shelves in response to the trade war, sales eventually resumed but have not seen the same demand levels as before. It is noted that American products are defined as those made, manufactured, or produced in the U.S., excluding certain items like Budweiser brewed by the Oland Brewery and Southern Comfort produced in Montreal.

Despite the current tensions between the American and Canadian governments, Swonger expressed hope for improved relations and emphasized the importance of finding common ground. The NSLC plans to provide more details on remaining American products with its upcoming financial results.

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