Company behind Jack Daniel’s says Canadian boycott is ‘significant’ as sales drop 62%

The recent trade dispute between the United States and Canada has had a significant impact on American alcohol producers, such as Jack Daniel’s whisky and Woodford Reserve bourbon. Sales to Canada dropped by 62 per cent during the latest fiscal quarter, as American alcohol remains off the shelves in many provinces.

After U.S. President Donald Trump imposed tariffs on Canadian goods in early March, several provinces retaliated by pulling American alcohol from store shelves. While Alberta and Saskatchewan have since lifted the ban, the boycott has caused a notable decline in sales for Brown-Forman, the parent company of these popular alcohol brands.

During a conference call with investors, officials from Brown-Forman acknowledged the challenges they are facing due to the ongoing trade dispute. The company’s chief financial officer, Leanne Cunningham, highlighted the significant impact of the boycott on their first quarter results for fiscal year 2026.

Despite the 62 per cent drop in sales to Canada, the company’s total sales were down by three per cent for the quarter. CEO Lawson Whiting noted that while their non-U.S. brands continued to show growth, they were not able to offset the decline of their U.S.-produced brands.

The trade dispute has created “significant headwinds” for Brown-Forman, with net sales in developed international markets dropping by eight per cent due to macroeconomic and geopolitical uncertainty. The absence of American-made alcohol from retail shelves in most Canadian provinces has been a major contributing factor to this decline.

Canada has historically been a crucial market for U.S. spirits, with the country being the second-largest market for American spirit exports in 2024. While Prime Minister Mark Carney recently announced the removal of retaliatory tariffs on CUSMA-compliant U.S. goods, the impact of this decision may be limited until all provinces put American spirits back on their shelves.

The Distilled Spirits Council of the United States welcomed Carney’s decision but emphasized the importance of reinstating American spirits in all Canadian provinces to fully benefit U.S. distillers. The decision to ban American alcohol has resulted in most Canadian retailers stockpiling American products, leading to significant quantities of inventory in provinces like Nova Scotia.

As the trade dispute continues to unfold, American alcohol producers are navigating the challenges of restricted access to the Canadian market. The impact of these trade tensions on the industry remains a key concern for both producers and consumers alike.