No wonder Kentucky is losing whiskey distilleries so rapidly.
As you know, Canada did not take kindly to the new US tariffs, and several provinces decided to hit US businesses where it hurts- alcohol sales.
After all, domestic demand for alcohol has been slowing for years as Gen Z just isn’t as interested in the drinks their parents loved…
So alcohol companies have been laser-focused on growing in international markets to make up for the loss.
Well, with Canada’s new restrictions, the US alcohol industry lost an estimated $273 million in sales in the first half of this year. (That’s $173 million in wine exports and a little over $70 million in spirits exports – a combined loss of over 60% in a huge US market.)
And what’s worse – keep in mind that all the trade war stuff only started in April. So those losses really only reflect about two and a half months of full impact.
Can you imagine what the second half of 2025 is going to look like? When we have a full six months of impact?
Share any thoughts or ideas (and maybe some encouragement for our beleaguered alcohol industry) in the comments!
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