For nearly four decades, since the Canada-U.S. Free Trade Agreement and continuing under the Canada-U.S.-Mexico Agreement, Canadian spirits have moved tariff-free across the shared border, supporting investment, job creation, innovation and economic growth in both countries. On Aug. 19, they will go from a zero per cent tariff to a 50 per cent tariff overnight, threatening to undermine that longstanding partnership.

“Both the Canadian and American spirits industries have felt significant impacts of this broader trade dispute,” said Cal Bricker, president and CEO of Spirits Canada. “While we are disappointed by this announcement, we remain committed to working collaboratively with governments on both sides of the border to reach a practical solution before these tariffs take effect. The long-standing trade relationship between Canada and the U.S. has benefited producers, consumers, workers and governments alike, and we believe that relationship is worth protecting.”

Canada’s spirits sector is uniquely vulnerable to the risks of these tariffs. Nearly 50 per cent of all Canadian spirits production is destined for the U.S., making continued access to that market essential for Canadian distillers, farmers, supply chains and the thousands of Canadians whose livelihoods depend on the industry.

The tariff applies to the principal distilled spirits classifications, and would include spirits-based ready-to-drink beverages.

The announcement follows provincial decisions to remove U.S. beverage alcohol products from retail distribution systems. While intended as a response to broader trade tensions, those measures have now become the stated basis for direct U.S. retaliation against Canadian spirits exports.

In 2025 alone, approximately 93 per cent of Canada’s total spirits exports were destined for the U.S. market, with the remaining seven per cent destined for other markets. Forty-eight per cent of spirits production in Canada is tied to U.S. demand, leaving limited near-term alternatives to replace it. Spirits Canada is calling on federal and provincial governments to work together immediately to prevent these tariffs from taking effect.

Specifically, Spirits Canada urges governments to:

• Engage immediately with U.S. counterparts to secure the withdrawal or suspension of the announced tariffs before Aug. 19
• Restore reciprocal market access for U.S. beverage alcohol products through provincial distribution systems as part of a broader effort to protect Canadian exports, jobs and investment
• Avoid further escalation through additional beverage alcohol countermeasures that could trigger further retaliation against Canadian producers
• Establish a co-ordinated federal-provincial strategy that recognizes the national economic consequences of provincial policy decisions
• Prepare contingency support for Canadian distillers facing cancelled orders, production disruptions, inventory challenges and reduced access to the U.S. market

Spirits Canada remains committed to working collaboratively with governments and industry partners on both sides of the border to identify solutions that prevent these tariffs from taking effect.

“The North American spirits sector is deeply interconnected,” added Bricker. “Tariffs do not simply affect exporters – they impact farmers, manufacturers, hospitality businesses, retailers, governments and ultimately consumers in both countries. We are concerned that this action could trigger a cycle of retaliatory measures that harms an industry that has prospered under decades of fair and reciprocal trade.”

Spirits Canada continues to believe that maintaining fair, reciprocal duty-free access for distilled spirits is essential to supporting jobs, economic growth and investment throughout North America. The Canadian and American spirits industries have demonstrated for decades that open trade benefits producers, consumers and governments alike.

“We urge all parties to return to the negotiating table as quickly as possible. By working collaboratively and constructively, we are confident that a solution can be found that restores certainty, protects Canadian jobs and preserves one of North America’s strongest trading relationships,” said Bricker.

Currently, spirit-based RTD beverages must be sold at the SAQ, while malt, wine and cider-based beverages, despite having comparable alcohol content, are available in grocery stores and convenience stores.

This arbitrary distinction, based solely on the manufacturing process, deprives consumers of fair access and creates a major competitive distortion at the expense of spirits producers. Therefore, Spirits Canada, the Union québécoise des microdistilleries (UQMD), the Association des détaillants en alimentation du Québec (ADA), and the Retail Council of Canada – Quebec are asking the Quebec government to promptly rectify this situation.

Clear support from Quebecers

A recent Léger poll conducted on behalf of Spirits Canada revealed overwhelming support among Quebecers for the sale of RTD spirit-based beverages in grocery stores, supermarkets and convenience stores. Among consumers of these products, 91 per cent of regular consumers and 77 per cent of occasional consumers say they are in favour of this change.

“The message from Quebecers is very clear: they want choice, consistency and fairness,” said Cedric Salibi, senior vice president, policy and analytics at Spirits Canada. The alcohol content of RTD spirit-based beverages is comparable to that of other alcohol-based beverages and offers unparalleled diversity. It is time to modernize outdated regulations and allow the sale of RTD spirit-based beverages in grocery stores and convenience stores in Quebec.”

A fair measure to support local producers

The UQMD supports this reform, which would strengthen Quebec’s domestic spirits sector and contribute directly to the economic vitality of the regions. “According to a study conducted earlier this year by the UQMD, the sale of RTD beverages in grocery stores and convenience stores would generate $15.1 million in additional revenue for our members,” said its president, Nicolas Bériault.

“However, at present, RTD beverages with the same alcohol content are sold through two different sales channels simply because some are spirit-based and others are malt- or wine-based. It makes no sense. Consumers buy a container and an alcohol content, not a list of ingredients. This kind of regulatory easing would offer a great opportunity to modernize an outdated law in our sector.”

Strong support from the distribution sector

In addition to the UQMD, the two main retail trade associations have expressed their support for expanding their offerings to include RTD spirit-based beverages in the same way as other categories of RTD beverages. “Quebecers’ shopping habits have changed over the past few years; this is the natural evolution of a vibrant market,” said Michel Rochette, president of the Retail Council of Canada – Quebec.

The spirits segment has grown significantly, both in terms of quality and reputation, in Quebec and elsewhere in the country. In this context, it is only natural that grocery store offerings should adapt as well. The arrival of RTD spirit-based beverages would be a logical extension of the current offering and would help to rectify a situation that has become difficult to justify.

Pierre-Alexandre Blouin, president and CEO of the ADA, says he is delighted that Quebecers are open to expanding the sales networks for these products. “If there is one type of business that listens to its customers’ needs, it is grocery stores. The survey conducted for Spirits Canada confirms that consumers want greater and more convenient access to these RTD beverages, and as local stores, grocery stores are ideally suited to meet this demand,” said Blouin.

The analysis shows that since March 5, when Canadian provinces announced they would no longer carry U.S. spirits products on their store shelves, through the end of April, sales of U.S. spirits in Canada fell by more than 66 per cent and total spirits sales in Canada declined by more than 12 per cent.

“The North American spirits sector is highly interconnected, and the immediate and continued removal of all U.S. spirits products from Canadian shelves is deeply problematic for spirits producers on both sides of the border,” said Cal Bricker, president and CEO of Spirits Canada. “The current disruption demonstrates the critical importance of maintaining open, reciprocal trade relationships that benefit consumers, businesses and government revenues in both nations.”

Several Canadian provinces pulled U.S. spirits from liquor stores following U.S. President Donald Trump’s imposition of a 25 per cent American tariff on certain Canadian imports. Though designed as a diplomatic rebuke, the policy triggered significant economic repercussions across Canada’s spirits sector. The analysis cited several key impacts since removing U.S. spirits products. From early March through the end of April:

• U.S. spirits sales declined 66.3 per cent
• Canadian spirits sales declined 6.3 per cent
• Other imported spirits sales declined 8.2 per cent
• Total spirits sales declined 12.8 per cent

In March, total spirits fell sharply by 20.6 per cent year-over-year following the immediate delisting of U.S. products. In April, Canadian spirits sales increased 3.6 per cent and other imported spirits sales rose 3.7 per cent, but the gains did not compensate for the significant losses from the U.S. product removal.

The overall spirits category remained down 3.3 per cent year-over-year in April, a decline of $13.9 million from $419.4 million to $405.5 million, demonstrating that substitute products cannot fully replace the market demand previously filled by U.S. spirits. Additionally, the replacement products tended to be lower-margin offerings, significantly impacting the profitability of the Canadian spirits sector.

Ontario, Canada’s largest spirits market, bore a disproportionate share of the impact with U.S. spirits sales plunging 80 per cent since removing the products in the province. Total spirits sales in Ontario were down 20 per cent, including a 12.8 per cent decline in Canadian products and 14.1 per cent decline in non-U.S. products.

“For decades, Canada and the U.S. have been the model of fair and reciprocal trade for spirits, and both the U.S. and Canadian hospitality industries have flourished as a result,” said Chris Swonger, president and CEO of the Distilled Spirits Council of the United States. “It’s time to put American spirits back on the shelves throughout Canada. This data makes clear that the decision by Canadian provinces to pull American spirits products off their store shelves is not only harming American distillers, but it’s needlessly reducing revenues for the provinces and hurting Canadian consumers and hospitality businesses.”

Spirits Canada and the Distilled Spirits Council of the United States. are working together to urge their respective governments to negotiate an agreement that continues to foster a thriving spirits industry between the two countries through permanent zero-for-zero tariffs on spirits products.

Spirits Canada’s corporate sponsorship of 86 Harassment signals to industry professionals and customers alike that sexual violence and harassment have no place in the beverage alcohol and hospitality industries.

86 Harassment is one of the first industry-wide initiatives specifically designed for the beverage alcohol and hospitality industries to co-create an action plan aimed at reducing incidents of harassment and violence. A key initiative of Women of the Vine & Spirits, 86 Harassment aims to create a model that can be duplicated by other industries worldwide emphasizing a collective commitment to fostering safer environments for employers, employees and customers.

“We can’t thank Spirits Canada enough for their support of 86 Harassment. This commitment signals to the industry at-large that sexual violence and harassment have no place in beverage alcohol and hospitality,” said Deborah Brenner, founder and CEO of Women of the Vine & Spirits and 86 Harassment council member.

Representing Spirits Canada on the 86 Harassment Council is Catherine Eaton, vice president, finance and operations at Spirits Canada.

We can’t thank Spirits Canada enough for their support of 86 Harassment. This commitment signals to the industry at-large that sexual violence and harassment have no place in beverage alcohol and hospitality.

Deborah Brenner, Women of the Vine & Spirits

“There is no place for sexual harassment and gender-based violence in our industry or society at large, and Spirits Canada’s support for this initiative reflects our deep commitment to fostering a safe, inclusive and equitable environment, where every individual is treated with dignity and respect,” said Eaton. “It is an honour to serve on this council and to contribute to meaningful change, ensuring that every person can be proud to work in this sector.”

Spirits Canada joins fellow sponsors Brown-Forman, Distilled Spirits Council of the United States, Pernod Ricard North America, Republic National Distributing Company, and Wine & Spirits Wholesalers of America.

Thanks to the generous financial funding of 86 Harassment sponsors, 86 Harassment will support employers and employees with the following free resources:

• Customized training for the beverage alcohol and hospitality industries on setting boundaries and bystander intervention, including “Creating A Safer Community,” developed and conducted by RAINN, and “Active Bystander Intervention” and “De-Escalation Training” for hospitality staff developed and conducted by Safe Bars. Additional trainings to be announced.
• Industry-specific Dedicated Confidential Crisis Intervention Hotline operated by staff at RAINN. Telephone Crisis Intervention Services available in English and Spanish. The hotline staff are available 24/7 to support communities with industry-specific crisis intervention, empathetic listening and warm handoffs to designated local service providers. The hotline provides quality, anonymous and confidential crisis intervention services in English and Spanish to support survivors within the industry.
• Centralized Resource Hub including glossary key terms and phrases, articles, reports, newsletters and educational resources for anyone in the beverage alcohol and hospitality industries. Handouts, toolkits, postcards, flyers, stickers, posters, available to download, print and post on walls on-premise, off-premise, offices and use at conferences and events.

Beyond recognition for cleaner production, the spirits industry is modernizing. The phrase “going green to see green” can mean many different things to many different players in the world of spirits, and the industry has been adjusting on all levels to meet the increasing demand for sustainable products and the imperative of ecological responsibility.

Guided by the will to improve operational excellence through sustainable practices, the “grain to glass” process is expansive, which means that more communities beyond distillers are affected by the Sustainability Development Goals (SDGs) for Canada (which was a blueprint created by the United Nations Sustainable Development Group and adopted by all UN Member States).

Those involved in the value chain are, to the best of their ability, moving the needle with their resources and expertise to comply with these ambitious and, let’s face it, costly targets. From grain farmers supplying raw material, to the responsible consumption of the end product, addressing sustainability is not always the easiest and most linear process for spirits.

While the laundry list is endless when it comes to what can be done, below are a few of the main SDG goals that have catapulted innovation from some Spirits Canada members in areas such as water, renewable energy, emissions reporting and packaging. It would be remiss not to also mention some of the gaps and pain points that call for broader support and clarity from regulators and government bodies to get the spirits sector across that green-ribbon finish line.

Water stewardship

One SDG the spirits industry has prioritized is “Water and sanitation for all,” a large part of which is ensuring proper water stewardship. Several actively functioning programs and many initiatives are aimed at improving water management throughout the industry. One such program is a water recycling program that reduces distilleries’ freshwater consumption by 20 per cent, saving upwards of 900 tons of carbon dioxide emissions annually. Large distillers aim to replenish more water than they use in water-stressed areas by 2026 and plan to reduce water usage by 30 to 40 per cent in local sourcing areas.

Re-thinking energy

Beyond water stewardship, the spirits industry’s dedication to environmentally-conscious development extends to broader sustainability goals. SDG 7 ensures access to affordable, reliable and sustainable modern energy for all. Some Spirits Canada members are committed to transitioning to renewable energy, such as cleaner energy sources, and using closed-loop control systems. By 2025, some of the most significant players in the spirits game aim to have 100 per cent renewable electricity usage in all aspects of their work.

Promoting sustainable business models and consumer choices

SDG 12 highlights the importance of sustainable consumption and production patterns, a principle the industry has embraced in manufacturing and retail. Within the spirits industry, substantial efforts have been devoted to implementing sustainable practices in waste management. For example, each year, approximately 70,000 tons of spent grain, a by-product of the distilling process, are recycled, with 99 per cent being repurposed, primarily as high-quality animal feed sold to local farmers (these could be the same farmers that grow high-quality grain to supply to distillers).

Leading stakeholders have set ambitious targets, aiming for zero waste to be disposed of in landfills throughout the supply chain by 2030. Additionally, the industry has embraced circular packaging technologies, ensuring 100 per cent of packaging is widely recyclable, reusable or compostable. This initiative has also led to a 10 per cent reduction in packaging weight and the incorporation of 60 per cent recycled glass and 40 per cent recycled plastic, demonstrating a steadfast commitment to sustainable innovation.

Other SDG successes that Spirits Canada members have been able to achieve are tied to reducing poverty, creating economic growth, enhancing infrastructure, addressing life below water and above land, and ensuring local communities benefit from these efforts.

Along with these positive strides, the spirits industry faces significant challenges in the fight for sustainability. One of these challenges is the push to report Scope 3 emissions, primarily due to the complexities of responsibility attribution and measurement. Scope 3 emissions, also known as value chain emissions, encompass all indirect emissions from the process of manufacturing a product.

Consider the production of a bottle of whisky

Emissions could be linked to the distillery, the glass manufacturer, the transportation company and even the agricultural process for sourcing grains or botanicals. The distilleries do not control any of these affiliates, so how can they be sure how much climate pollution is created for each item bought? The difficulty in estimating those figures is more than challenging, and due to the high margin of double counting along the supply chain, it is likely representative of the carbon impact. The same is true for plastics reporting.

Environment and Climate Change Canada’s new plastics reporting initiatives are equally as complex to navigate. Primary, secondary and tertiary packaging all need to be reported, but it remains unclear who is responsible for that reporting, whether it be the manufacturer, importer, retailer, etc. This plan, like others, causes doubt in the industry.

Each stakeholder in the spirits industry has the potential to contribute positively to climate action. Yet, without clear guidelines, robust measurement mechanisms and support from the government, navigating new regulations and requirements remains a daunting task, demanding significant resources and labour. As the spirits industry in Canada grapples with this challenge, it also grapples with what areas of support need to be prioritized. It is clear that the spirits industry is willing to innovate, but sometimes partnerships and incentives are needed to create a unified movement forward.

This is the time to identify opportunities for support, incentives and, more importantly, a two-way partnership with regulatory and government bodies to fill the necessary gaps. From ensuring that industry associations are at the table when policies are being created, to sustainable sourcing practices, to providing aid for farmers for continued growth of high-quality Canadian grains, or to simply educate consumers towards a conscious and responsible drinking culture, everyone plays an important part in embedding sustainability in the protection and promotion of the craftsmanship that is spirits.

Spirits Canada is working to help suppliers understand the regulatory environment, which is often tumultuous and ill-defined. While there is a long way to go, the resilience of the spirits industry in Canada continues to forge its path forward. Through advocacy and data services, Spirits Canada ensures that the voices and concerns of the industry are effectively communicated to policymakers, fostering a clearer understanding of regulatory complexities and promoting an environment conducive to the protection of the industry.

It would be no surprise that some may find him a familiar face and name, because for almost 40 years, Westcott has played a critical role as a relentless and passionate policy and public affairs leader within the beverage alcohol industry. His leadership has spanned from serving as the president and CEO of the Canadian Wine Institute in 1984 to then becoming the founding CEO of the Brewers of Ontario, a provincial body representing both licensed brewers and their distribution channel, Brewers Retail Inc. (The Beer Store), in 1989.

“I am eternally grateful to have had this opportunity; it has been the experience of a lifetime.”

Jan Westcott, Spirits Canada

Over the years, Westcott has forged strong relationships with industry and government partners from all over the world, emphasizing the importance of the spirits sector as a wealth creator contributing to strong and continuous economic growth across Canada for those involved in the “grain to glass” process.

Westcott’s thought leadership in the public affairs space did not go unnoticed. In October 2023, he received the Award of Distinction from the Public Affairs Association of Canada (PAAC). PAAC presents the Award of Distinction to a member of the public affairs community who, over their career, has made a significant contribution to public affairs in Canada.

“At Spirits Canada, I’ve had the privilege of working with fantastic people across the spirits industry, all while representing great companies alongside incredible world-renowned brands,” said Westcott. “I must also thank my talented Spirits Canada colleagues who, over the decades, contributed hugely to what the association achieved. I am eternally grateful to have had this opportunity; it has been the experience of a lifetime.”

Spirits Canada welcomes Cal Bricker, incoming president and CEO

The board underwent a diligent and extensive search, and was delighted to announce Cal Bricker’s appointment as incoming president and CEO of Spirits Canada on Jan. 1, 2024.

“I am honoured to lead Spirits Canada and contribute to the continued success of Canada’s distilled spirits industry,” said Bricker. “I look forward to working collaboratively with our members, stakeholders and government partners.”

He is no stranger to the beverage alcohol industry, having worked in the beer industry for over 13 years as director and VP of public affairs for large Canadian brewers.

Bricker brings with him a wealth of knowledge and has held prior positions in regulated industries as former CEO of Ontario Cannabis Stores and former senior vice president of horse racing at Ontario Lottery and Gaming Corporation. He is also a senior fellow at the Munk School for Global Affairs and Public Policy at the University of Toronto, serves as a captain (naval) in the Royal Canadian Navy Reserve, and sits on the boards of the Royal Canadian Navy Benevolent Fund and the Toronto Zoo Wildlife Conservancy.

His experiences and leadership over the years make him a uniquely qualified leader for Spirits Canada.

“On behalf of the board of directors, we are tremendously grateful for [Westcott’s] contributions to Spirits Canada over the years,” said Nicolas Krantz, president and CEO, Corby Spirit and Wine Ltd. and president of the board of directors, Spirits Canada. “His work has led him to become one of the most respected public affairs leaders in the beverage alcohol space, and we thank him for his institutional knowledge that places Spirits Canada on a path for growth and innovation for the years to come. We thank [Westcott] for everything that he has helped us achieve and wish him the very best in his retirement.

“I am delighted to welcome [Bricker] as our new CEO. His diverse background and proven executive leadership make him the ideal choice to guide our industry into its next chapter of growth and innovation.”

With this organizational change, the staff at Spirits Canada kick off a new year with the same passion to advocate for grain farmers, distillers, liquor boards and government agencies to promote the economic growth of the industry, and to encourage moderate and responsible consumption of alcohol.