The Jack Daniel’s maker Brown-Forman’s CEO Lawson Whiting said on Wednesday Canadian provinces taking US liquor off store shelves was “worse than a tariff” and a “disproportionate response” to levies imposed by the Trump administration.
Several Canadian provinces have taken US liquor off store shelves as part of retaliatory measures against Donald Trump’s tariffs.
“I mean, that’s worse than a tariff, because it’s literally taking your sales away, [and] completely removing our products from the shelves,” Whiting said on a post-earnings call.
Canada on Tuesday also imposed 25% tariffs on goods imported from the US, including wine, spirits and beer.
Whiting, however, said that Canada accounted for only 1% of their total sales and that the company could withstand the hit.
He added the company would watch out for what happens in Mexico, which according to its annual report, made up 7% of its 2024 sales.
Shares of the company were up about 8% after the liquor maker reaffirmed its annual forecasts which accounted for the impact of tariffs.
While Whiting warned of “continued uncertainty and headwinds in the external environment”, he said that he was confident of the company’s trajectory.
Brown-Forman has been reeling from a slowdown in demand so far this year, led by the US, Canada and Europe, which offset benefits from stronger sales in emerging markets such as Mexico and Poland.
The company has undertaken cost-cutting measures, including workforce reduction. Analysts have said this is a response to a more challenging environment both for the company and the broader spirits industry.
Source: theguardian.com
