UK alcohol producers could benefit from the liquor trade war between the US and Canada, set off by US president, Donald Trump’s tariffs on Canadian goods, say leading audit, tax and business advisory firm, Blick Rothenberg.
Melissa Thomas, Head of Canada Desk at the firm, said:
“The Ontario Governor has confirmed that The Liquor Control Board of Ontario (LCBO), which sells almost $1billion worth of US alcohol every year, is removing all US products in retaliation against Donald Trump’s 25% tariffs on Canadian goods. UK alcohol producers could seize on the opportunity to fill the gap in the LCBO’s shelves with their own products.”
She added: “The LCBO is an exclusive wholesaler, so independent retailers, bars and restaurants across Ontario will be unable to purchase American alcohol to restock their cellars. With Canadian producers potentially struggling to fill the gap as US tariffs on steel and aluminium start to bite, UK producers could step in to keep the taps flowing.”
Melissa said: “British producers could also take advantage of the growing anti-US sentiment in Canada, as there may well be an appetite for a Scottish whiskey, a South Downs bubbly or Kentish Bitter.”
She added: “On the US side, Californian wineries, Kentucky whiskey and Tennessee Bourbon distilleries will be looking for new sales channels outside of the US. The removal of US alcohol by LCBO equates to more than 3,600 American-made alcohol products from 35 US states, creating an export gap US producers will urgently need to fill.”
Melissa said: “The historical ‘special relationship’ between the UK and the US and the well documented flow of US companies who’ve expanded into the UK over the years, using the UK as a springboard into Europe will make the UK market an attractive option for US alcohol producers who’ve suddenly found their sales channels north of the border closed.”