U.S. booze appears to be finding a warm welcome
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While this may go against ongoing anti-Trump sentiment and tread upon our Canadian sensibilities a little, it looks like more than a few of us are ready and willing to buy American.
At least for the next few weeks.
Since last March, a large stockpile of U.S.-made alcohol and spirits has been gathering dust in Liquor Mart warehouses after Manitoba Premier Wab Kinew and other Canadian premiers decided to pull American booze off the shelves as a tariff retaliation measure.
At the same time, Kinew ordered Manitoba Liquor and Lotteries to stop making new orders of American alcohol as well.
“This means that we are going to be taking $80 million out of the U.S. economy,” Kinew told reporters at the time. “This is $80 million that we won’t be spending in the United States of America.”
That decision, made shortly after U.S. President Donald Trump singed an executive order that imposed 25 per cent tariffs on Canadian goods and a 10 per cent tax on energy, was part of a larger pan-Canadian boycott of U.S. alcohol in every province — one that has largely endured until now.
And while both Alberta and Saskatchewan resumed selling American products shortly after their own initial spring boycott, a CBC story in June suggested that Canadians in those provinces found other Canadian products to their liking, with American wine sales in particular dropping significantly.
Of course, the fact that Canada continues to have a 25 per cent tariff on American alcohol imports probably isn’t helping sales. It should also be said that the rise of Canadian patriotism in the face of U.S. economic aggression has prompted many of us to fully live the phrase “buy Canadian.”
According to the BBC, mid-year figures released by the Distilled Spirits Council of the United States show that Canada’s boycott has contributed to a large decline in U.S. alcohol sales.
CEO Chris Swonger told the U.K. media giant that exports to Canada have dropped by 85 per cent, along with declines in other markets such as the U.K. and the European Union.
Amazing what Canadian consumers can do when they have a shared objective. Suffice to say, we have plenty of good Canadian products to choose from, not to mention wines and other beverages from countries that we trade with all over the world.
We would argue that the U.S. alcohol ban has not only been a strong defensive move, but remains a defensible strategy for our province to take, one that sends a very clear signal to American suppliers that the current U.S. administration has gone too far.
Still, letting all those already-purchased cases of alcohol go to waste is hardly sensible. The province sees no return on its investment, and the product simply spoils. Back in October, the province told media that it had disposed of nearly $30,000 worth of cream liquors and wines that had expired and could not be resold.
And so, in the lead-up to Christmas and New Year celebrations, various American-made wines and spirits are now back on Manitoba shelves in select Liquor Marts and private wine stores across the province, and will remain there until Christmas Eve.
Kinew announced last week that about $1 million in U.S. alcohol products are up for sale, with proceeds from those sales raising a potential of $500,000 for charities that will distribute holiday food and gifts in Winnipeg, Brandon and Thompson.
Brandon’s Liquor Mart at the corner of 10th Street and Victoria Avenue is one of only 12 government-run stores across the province that will put the merchandise back up for sale.
Two Westman organizations have been selected to benefit from the program — the Brandon-Westman Christmas Cheer Registry and Helping Hands Centre of Brandon — along with four other Manitoba charities.
Rather than let the rest go to waste, the province’s decision to sell off a portion of the current U.S. inventory was a good move, one that stands to benefit those who need it the most.
That comes with a reminder to drink responsibly, of course.
Manitoba’s announcement followed a similar one made by the Nova Scotia government last week. The latest to join the bandwagon is Newfoundland and Labrador Premier Tony Wakeham, whose government announced Tuesday that $1 million in profits from American alcohol this holiday season would go to a local community food-sharing group.
No doubt there are a certain number of Manitoba consumers who have welcomed this news, as they have been missing their dram of Kentucky bourbon or that glass of Carlo Rossi.
In fact, it’s arguable that some Manitobans would prefer to have made the choice not to buy American products on their own, rather than have that choice made for them by their provincial government.
The proof may be in the sales sheet.
Already The Canadian Press has reported that the general public has been snapping up U.S. products that already went on sale in Winnipeg this past Monday, with about $1.9 million purchased within the first four hours.
Due to the sales surge, the premier suggested yesterday that the province may expand the pilot program. As Kinew told reporters, “there’s definitely a demand there.”
Puts a whole new meaning into the phrase “elbows up.”