Jack Daniel’s maker says Canada pulling U.S. alcohol off shelves ‘worse than tariff’

The LCBO is pulling American-made alcohol from its stores amid a trade war with the U.S. (LCBO Media Centre)

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.

Canadians are steering away from U.S. goods, sports events and trips following the recent imposition of tariffs, which have left them stirred, despite the deep ties between the two countries.

“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 accounted for only 1% of the company’s total sales, Whiting said, so the company can withstand the hit.

Canada on Tuesday also imposed 25% tariffs on goods imported from the U.S., including wine, spirits, and beer.

Whiting added the company would watch out for what happens in Mexico, which according to its annual report, made up 7% of its 2024 sales.

Canadians have been increasingly looking to support locals by adapting different ways such as boycotting alcohol brands from the U.S. to altering kitchen pantry with local products.

Shares of Brown-Forman were marginally down in extended trading.

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%.

By Savyata Mishra

(Reporting by Aamir Sohail, Savyata Mishra and Anuja Bharat Mistry in Bengaluru; Editing by Shailesh Kuber, Leroy Leo and Mohammed Safi Shamsi)