US spirits exports to Canada drop 70%
Exports of US spirits to Canada have plunged by 70% since their removal from the shelves of most provinces in March 2025.
According to data from trade body the Distilled Spirits Council of the US (Discus), American spirits exports have fallen to US$60 million between March and December 2025, compared to the same period in 2024 (US$203m).
All but two Canadian provinces have continued to boycott the sale of American products in retail stores since March 2025. The move was made in response to trade tensions with the US, with provinces directing consumers to drink Canadian products instead.
After US president Donald Trump placed tariffs on Canadian goods last year, Canada began imposing a 25% tariff on all US alcoholic products on 13 March 2025. However, this was lifted on 25 August.
Canadian provinces Alberta and Saskatchewan have since resumed selling US spirits.
Discus warned that US spirits exports to Canada plummeted by nearly 63% to US$89m in 2025, down from US$238m the previous year.
This led to Canada dropping from its position as the second-biggest export market for US spirits in 2024 to the sixth largest last year.
The US imported US$691m worth of Canadian spirits last year, up by nearly 11% from 2024.
Major US brands such as Tito’s Handmade Vodka, Wild Turkey Bourbon and Jack Daniel’s whiskey have been off shelves in Canada for a year.
The removal of American products have hindered sales for companies with a major presence in segments like whiskey and vodka. The US firm behind Jack Daniel’s and Woodford Reserve, Brown-Forman, saw Canadian sales plummet by 59% in the nine months to 31 January 2026.
Meanwhile, Italy’s Campari Group, which owns Wild Turkey and Skyy Vodka, saw its revenue in Canada fall by 5% last year.
LCBO loses CA$100m in sales
The Liquor Control Board of Ontario (LCBO) recently reported its third-quarter (Q3) update, covering 12 October 2025 to 3 January 2026, with total sales of CA$1.88 billion (US$1.37bn). It was down from CA$1.98bn (US$1.5bn) for the same period in 2024/25.
The top 10 biggest-selling spirits brands in its latest quarter was almost the same year on year with the exception of Texan producer Tito’s.
The list includes five brands owned by UK drinks giant Diageo: Smirnoff (in first place), Crown Royal (second place), Captain Morgan (third place), Baileys (fifth place) and Johnnie Walker (seventh place).
Pernod Ricard-owned JP Wiser’s Canadian whisky was the LCBO’s third-largest selling spirit across the three months. Absolut Vodka, also produced by Pernod Ricard, took the sixth spot and stablemate Jameson Irish whiskey was the 10th top-selling product.
Bacardí rum was the eight leading spirit brand across LCBO’s stores in Q3, followed by Suntory’s Canadian Club whisky.
For the six months ending 31 December 2025, Diageo’s sales in Canada were up by 2.3%. The Canadian subsidiary of French firm Pernod Ricard also reported revenue growth for the same period, rising by 13%.
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