Jack Daniel’s maker Brown-Forman’s CEO Lawson Whiting, criticised Canadian provinces for removing US alcohol from store shelves in response to President Donald Trump’s trade policy, calling the move “worse than a tariff” and a “disproportionate response” to the administration’s levies.
In response to US tariffs on Canadian goods, several Canadian provinces, notably Ontario, the most populous, implemented countermeasures this week. Earlier on Tuesday, the Liquor Control Board of Ontario (LCBO), a major global alcohol purchaser, removed US-made alcoholic drinks including Jack Daniel’s from its shelves.
The CEO of Brown-Forman, Lawson Whiting, criticised the Canadian reaction as “disproportionate” compared to the Trump administration’s 25% duties on Canadian products.
“I mean, that’s worse than a tariff, because it’s literally taking your sales away, completely removing our products from the shelves,” Whiting said, BBC reported.
Canada has imposed 25% levies on US imports, including beer, spirits, and wine in retaliation to the tariffs. Additionally, some provinces, such as Ontario and Nova Scotia, have implemented their own measures.
Ontario’s Premier Doug Ford announced that the LCBO’s annual US alcohol sales of nearly $1 billion would cease immediately, adding that: “As of today, every single one of these products is off the shelves.”
As the exclusive Ontario wholesaler, the LCBO’s decision means provincial retailers, bars and restaurants cannot replenish US products, Ford added.
Whiting noted that Canadian operations represented merely 1% of total sales, making the impact manageable. However, he expressed concern about Mexico, which contributed 7% of 2024 sales, according to its annual report.
Brown-Forman shares fell more than 3% on Thursday, despite being up about 8% earlier after the company reaffirmed its annual forecasts, factoring in the impact of tariffs.
Despite acknowledging “continued uncertainty and headwinds in the external environment”, Whiting expressed confidence in the company’s direction.
The LCBO is encouraging Canadians to support locally made products, with some already opting for domestic goods in response to Trump’s tariffs.
Brown-Forman has been grappling with weakening demand this year, particularly in the US, Canada, and Europe. However, growth in emerging markets like Mexico and Poland has helped offset some of the decline.
To navigate a more challenging market, the company has implemented cost-cutting measures, including workforce reductions. Analysts suggest these moves reflect broader difficulties facing both Brown-Forman and the spirits industry as a whole.