Jack Daniel’s Maker Criticizes Canada’s Liquor Ban as Worse Than Tariffs

The CEO of Brown-Forman, the parent company of Jack Daniel’s whiskey, has condemned Canada’s decision to remove American-made spirits from store shelves, calling it a “disproportionate” response to newly imposed U.S. tariffs.

Lawson Whiting, Brown-Forman’s CEO, expressed his concerns during an earnings call on Wednesday, arguing that the move has a more immediate impact than tariffs themselves.

“That’s worse than a tariff because it’s literally taking your sales away,” Whiting said, reacting to the 25% tariffs imposed this week by the U.S. on Canadian imports.

Canada’s Response: A Retail Ban on U.S. Spirits
In retaliation, provinces across Canada have begun removing American spirits, beer, and wine from store shelves. The Liquor Control Board of Ontario stated that it is actively encouraging consumers to choose Canadian-made alternatives, and U.S. alcohol products will remain off the shelves unless directed otherwise by the government.

Despite this setback, Whiting downplayed the financial impact on Brown-Forman, noting that Canada only accounts for 1% of the company’s total sales. However, he is monitoring the response from Mexico, which has also been hit with a 25% tariff, as the country represents 7% of Brown-Forman’s revenue.

Industry Pushback and Economic Challenges
The Distilled Spirits Council of the United States (DISCUS), an industry trade group, also voiced opposition to the tariffs, warning of broader consequences.

“American wines and spirits have benefitted from fair and reciprocal trade with Canada and Mexico,” DISCUS said in a statement. “These U.S. tariffs on Mexico and Canada will result in great harm to U.S. companies and employees throughout the wine and spirits supply chain.”

The tariff dispute adds to Brown-Forman’s ongoing struggles, including a decline in consumer demand. In January, the company laid off 700 employees and closed a Kentucky cooperage, where whiskey barrels are made.

After experiencing a pandemic-era sales boom from 2020 to 2022, the spirits industry has since faced a slowdown. Brown-Forman first signaled trouble in 2023, reporting a drop in whiskey sales—a sharp contrast to the previous year, when demand was soaring.

Market Reaction
Despite the trade tensions, Brown-Forman’s stock (BF.B) rose 10% on Wednesday, as investors had already factored potential tariff impacts into the company’s outlook.