The NSLC has retained its American alcohol inventory for over seven months following the removal of American alcohol due to the trade war with the U.S. In contrast, New Brunswick Liquor has started selling its remaining $3.4 million worth of American alcohol. The NSLC currently holds around $14 million worth of American products in storage, specifically goods made in the U.S.
Not all products perceived as American are included in the NSLC’s inventory, such as Budweiser, which is produced locally at the Oland Brewery in Halifax. Coors, another American brand, also has breweries in Canada. Southern Comfort, labeled as ‘The spirit of New Orleans,’ remains on NSLC shelves as it is produced and bottled in Montreal.
The province is yet to determine the fate of the stored American alcohol, and measures to keep American alcohol off shelves will persist for now. The decision on these measures may be revisited during negotiations for a long-term trade deal with the U.S.
American alcohol remains unavailable in many Canadian retailers, bars, and restaurants due to tariffs imposed by U.S. President Donald Trump. Despite concerns about perishability, none of the NSLC’s American alcohol has been discarded. In Quebec, the SAQ planned to dispose of American alcohol but later decided to donate it for charitable events and training purposes in Quebec.
The boycott on American alcohol by Canadian provinces has negatively impacted U.S. alcohol producers. Exports to Canada dropped significantly, leading to a decrease in sales for companies like Brown-Forman. In contrast, local and Canadian alcohol producers have seen increased sales due to the absence of American alcohol on NSLC shelves. Sales of Nova Scotia spirits and wine have notably surged compared to the previous year.
The NSLC’s decision to retain American alcohol has influenced market dynamics, benefitting local and Canadian producers while challenging U.S. alcohol exporters amidst ongoing trade tensions.