Posted on 03/05/2025 8:57:23 PM PST by lasereye
Jack Daniel’s maker Brown-Forman’s CEO Lawson Whiting said on Wednesday Canadian provinces taking American liquor off store shelves was “worse than a tariff” and a “disproportionate response” to levies imposed by the Trump administration.
Several Canadian provinces have taken U.S. liquor off store shelves as part of retaliatory measures against President Donald Trump’s tariffs.
“I mean, that’s worse than a tariff, because it’s literally taking your sales away, (and) completely removing our products from the shelves,” Whiting said on a post-earnings call.
Canada on Tuesday also imposed 25% tariffs on goods imported from the U.S., including wine, spirits, and beer.
Whiting, however, said that Canada accounted for only 1% of their total sales and could withstand the hit.
He added the company would watch out for what happens in Mexico, which according to its annual report, made up 7% of its 2024 sales.
Shares of the company were up about 8% after the liquor maker reaffirmed its annual forecasts which accounted for the impact of tariffs.
While Whiting warned of “continued uncertainty and headwinds in the external environment,” he said that he was confident of the company’s trajectory.
Brown-Forman has been reeling from a slowdown in demand so far this year, led by the U.S., Canada and Europe, which offset benefits from stronger sales in emerging markets such as Mexico and Poland.
The company has undertaken cost-cutting measures, including workforce reduction. Analysts have said this is a response to a more challenging environment both for the company and the broader spirits industry.
Net sales fell 3% from a year ago to $1.04 billion, compared with analysts’ estimate of $1.07 billion, according to data compiled by LSEG.
For fiscal 2025, Brown-Forman expects net sales growth in the range of 2% to 4%.
Worst case, if one distributor doesn't want to carry it, you find another one who will. Free markets and all that.
retailer, not distributor, my bad.
Consumers are very picky especially with their Liquor and Ky Bourbon is unmatched in followers. They will be demanding that it be put back on store shelves in no time. Current stocks in Canada were shipped and invoiced before the first tariff was applied so the videos were seeing of shelves being emptied by store owners are part of the media manipulation of anything they think will hurt Trump.
Word of tariffs has been circulating for a few months so shelves should have actually been empty already. Americans would have run to the stores and bought them out.
As I keep sayin’, there can be no civilization without Kentucky bourbon and Tennessee sour mash whiskey.
Bad headline by CNBC. “OH its worse than a tariff, heaven forbid our liquor is off the shelf!” Yet a couple sentences down, the CEO says it account for maybe 1% of sales so overall no big deal. Misleading scare mongering headline
So they are saying to boycott Crown Royal?
I guess Jack Daniels can always bend over for the hosers. They must be some big boozers if they can knock Jack Daniels out of business.
Tariff Canadian whisky at 100%. They would lose over 1.7 Billion in revenue. It would change their mind quickly.
As long as none of that affects Louisiana James Carville will be fine. Nancy, though, strikes me as a Canadian Mist girl so...
Saw Nanzi at the RAT freak show the other night. She had a death grip on the handle of her umbrella (?) like it was her last bottle of vodka. Just before a fart blew her 6 inches up off her seat.
I think by “worse” he meant it was a self-inflicted injury to the hosers and a tiny 1% to B&W.
The entry here is a real good display of that child throwing a tantrum. Instead of doing what is consistent with their needs they are throwing themselves on the floor and banging their heads. It doesn’t hurt the US and gives the child a bruise and a headache. So, insead of being concerned or frightened we should watch the self induced pain take over and illustrate the stupidity of it. And before long Canada will go back to being a normal child again. (One who will toe the line for a while I hope)
wy69
Like Trump said “They don’t have ANYTHING that we need”
Crown Royal (and most Canadian whisky is oak flavored vodka!
Cane (probably with a built-in, concealed poison-dart gun).
She's at Death's door.
Regards,
THe US market for whisky type products is probably 10 times the size of the Canadian market.
I’m not in favor of trade conflicts with Canada.
Their wage structures and regulations are comparable to ours.
This is a government ban on all US alcohol. What the article does not mention is that the provinces are the distributor and a monopoly.
In a statement yesterday, LCBO said it had “ceased the purchase of all US products,” adding that “retail customers are no longer able to purchase US products on lcbo.com and the LCBO app, and wholesale customers, including grocery and convenience stores, bars, restaurants, and other retailers, are no longer able to place orders of US products online”.
Products would also no longer be available in its retail stores, nor LCBO convenience outlets, it said.
It added that it was the “importer of record” for US alcohol into the province and that it presently lists roughly 3,600 products from 35 states.
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