In Halifax, Martha Reynolds is conscious of the origins of products she purchases, whether at the grocery store or the NSLC. She has made a deliberate choice to avoid buying American goods, opting for scotch whisky over bourbon for her alcohol purchases. Reynolds also recommends wines from Nova Scotia, Ontario, and British Columbia over California wines, expressing her confidence in the quality of Canadian wines.
The ongoing trade conflict between the U.S. and Canada has led to some provinces discontinuing the sale of American alcohol products. Consumers like Reynolds actively avoiding American goods have significantly impacted the distilled spirits industry in the United States. Chris Swonger, the president and CEO of the Distilled Spirits Council of the United States, acknowledged the challenges faced by the industry due to declining exports to Canada.
Last year, American exports decreased by 3.8%, primarily attributed to the boycott of U.S. alcohol in Canadian provinces. Another contributing factor was whisky producers accelerating shipments to the European Union to avoid potential retaliatory tariffs. Excluding Canada from the data, spirit exports actually saw a 2.5% increase for the year.
Although the NSLC temporarily removed American alcohol from its shelves in response to the trade war, the corporation resumed sales of existing stock and did not order more American products. Despite initial strong demand, sales of American alcohol have declined in recent months at the NSLC.
Not all alcohol labeled as American is produced in the U.S. For example, Budweiser beers brewed at the Oland Brewery in Halifax are part of a global company, and Southern Comfort, labeled as “The spirit of New Orleans,” is actually produced in Montreal.
Acknowledging the strained relations between the American and Canadian governments, Swonger expressed hopes for improved trade conditions in the future. The NSLC plans to provide more information on its remaining American product stock when releasing its year-end financial results in June.
