WASHINGTON (dpa-AFX) - Brown-Forman CEO Lawson Whiting criticized Canada's decision to remove American-made spirits from store shelves, calling the response to U.S. tariffs 'disproportionate.' The move affects the company's flagship Jack Daniel's whiskey and other liquors, with Whiting arguing that it is more damaging than tariffs themselves as it directly eliminates sales.
During an earnings call, Whiting described Canada's reaction to the newly imposed 25 percent tariffs as excessive. Liquor regulators across the country, including the Liquor Control Board of Ontario, have pulled U.S. spirits, beer, and wine from shelves while encouraging consumers to choose Canadian alternatives. The board stated that American products will remain unavailable until the government instructs otherwise.
However, Whiting downplayed the financial impact, noting that Canada accounts for only 1 percent of Brown-Forman's total revenue, allowing the company to absorb the losses. He also expressed concern over Mexico, which faces the same 25 percent tariffs and represents 7 percent of the company's sales.
The Distilled Spirits Council of the United States (DISCUS) also condemned the tariffs, warning that the measures would cause significant harm to American businesses and workers throughout the wine and spirits supply chain.
Brown-Forman is already navigating headwinds from declining consumer demand. Earlier this year, the company laid off 700 employees and closed a Kentucky cooperage that produces barrels for aging whiskey and bourbon. Although the spirits industry saw a surge in demand between 2020 and 2022, sales have slowed sharply since 2023.
Despite these challenges, Brown-Forman's stock rose 10 percent on Wednesday, as investors had already accounted for the potential impact of the tariffs.
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