March 5 (Reuters) – Brown-Forman, the maker of Jack Daniel’s, has criticized Canadian provinces for removing U.S. liquor brands from store shelves, calling it a harsher blow than tariffs. CEO Lawson Whiting described the move as a “disproportionate response” to tariffs imposed earlier by the Trump administration.
Several Canadian provinces have taken American liquor off the market in retaliation for the tariffs, which have fueled growing resentment among Canadians. Many consumers are now avoiding U.S. products, including alcohol, travel, and sports events, as a form of economic protest.
“That’s worse than a tariff because it completely removes our products from shelves and takes away sales,” Whiting said in a post-earnings call.
While Canada accounts for only 1% of Brown-Forman’s total sales, Whiting noted that the company is monitoring the situation, particularly in Mexico, which contributed 7% of its revenue in 2024.
On Tuesday, Canada imposed new 25% tariffs on U.S. imports, including wine, spirits, and beer. Meanwhile, more Canadians are shifting toward local brands, further impacting U.S. liquor sales.
Brown-Forman’s stock saw a slight dip in after-hours trading. Despite the market challenges, the company reaffirmed its annual sales forecast, expecting a growth of 2% to 4% for fiscal 2025.
However, the broader liquor industry is facing headwinds, with declining demand in the U.S., Canada, and Europe offsetting strong sales in emerging markets like Mexico and Poland. In response, Brown-Forman has implemented cost-cutting measures, including workforce reductions.
The company reported a 3% drop in net sales, totaling $1.04 billion—below analysts’ expectations of $1.07 billion, according to LSEG data.
Despite ongoing challenges, Whiting expressed confidence in the company’s long-term growth, though he acknowledged economic uncertainty remains a key concern.
