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Could UK producers benefit from Canada’s US alcohol ban?
British distillers and brewers could see increased export opportunities as Canada pulls US alcohol from shelves in response to trade tariffs. The post Could UK producers benefit from Canada’s US alcohol ban? appeared first on The Drinks Business.
The escalating trade tensions between the US and Canada have opened potential avenues for UK alcohol producers to expand their presence in the Canadian market. In response to US-imposed tariffs on Canadian goods, several Canadian provinces, including Ontario, have retaliated by removing US alcoholic beverages from their shelves.
Ontario’s Liquor Control Board (LCBO), which annually sells nearly C$1 billion worth of American alcohol, has ceased the sale of US products. Premier Doug Ford announced that this move aligns with the province’s strategy to promote local and national products, stating, “There’s never been a better time to choose an amazing Ontario-made or Canadian-made product.”
'Seize on the opportunity'
The development presents a significant opportunity for UK alcohol producers to enter or expand in the Canadian market. Melissa Thomas, head of the Canada desk at audit firm Blick Rothenberg, commented: “UK alcohol producers could seize on the opportunity to fill the gap in the LCBO’s shelves with their own products.”
She further noted that with Canadian producers potentially struggling to meet demand due to US tariffs on steel and aluminium, British products like Scottish whisky or Kentish bitter could find a receptive audience.
The removal of US alcohol by the LCBO affects over 3,600 American-made products from 35 US states, creating a substantial void in the market. Among the affected companies is Brown-Forman, the owner of Jack Daniel’s, which has already been hit hard by global trade disputes. CEO Lawson Whiting recently described Canada’s decision to pull US alcohol from shelves as “worse than a tariff” for producers, emphasising that such measures directly impact sales rather than just increasing costs. Whiting added that the uncertainty surrounding international trade policies has made long-term planning difficult for US drinks companies.
With a major player like Brown-Forman feeling the pressure, UK exporters may find an opportunity to step in. The situation presents a chance to introduce British brands to Canadian consumers and establish long-term relationships with retailers. However, UK exporters must navigate regulatory requirements, consumer preferences, and distribution challenges to capitalise on the situation effectively.
