Canadian Provinces Repurpose US Liquor Removed from Shelves

In February 2023, Canadian provinces began removing American liquor from their shelves due to tariffs imposed by the U.S. By December, only Alberta and Saskatchewan continued to sell U.S. alcohol, while the rest grappled with millions of dollars worth of unsold stock.

Canadian Provinces Address Surplus of U.S. Liquor

Canadian provinces face a dilemma regarding excess U.S. alcohol that remains in storage following the implementation of tariffs. These provinces are now seeking ways to repurpose this inventory, estimated to be worth over C$80 million (approximately $57.7 million). The situation is particularly pressing as some of these products are approaching expiration dates.

Efforts to Redirect Inventory

• Nova Scotia and Manitoba plan to sell off remaining stock and donate proceeds to charity.
• Nova Scotia estimates that its sales could generate C$4 million for local food banks.
• British Columbia has already sold U.S. liquor to restaurants and bars.
• Quebec may consider donating soon-to-expire alcohol to charity events.

Nova Scotia’s liquor board noted that sales surged after restocking shelves, with Kentucky bourbon emerging as the top-seller. Premier Tim Houston emphasized the importance of minimizing waste by selling off these goods.

Provincial Responses to Tariffs

Ontario and Newfoundland and Labrador have yet to announce concrete plans for their stockpiles. Ontario’s finance minister, Peter Bethlenfalvy, stated they would continue their boycott until a favorable tariff resolution is reached with the U.S.

Manitoba officials, including municipal relations minister Glen Simard, expressed their commitment to preventing waste, emphasizing the need to sell off their inventory before expiration.

Impact on Trade Relations

Trade tensions initiated by the U.S. tariffs have significantly affected Canadian sales of American liquor. Recent figures indicate that U.S. exports to Canada have plummeted by 85%. This decline in trade has been described as “very troubling” by the Distilled Spirits Council of the United States (DISCUS).

As both American and Canadian governments continue to navigate these trade challenges, liquor producers are hopeful for improved relations and the eventual return of their products to Canadian retail shelves.