Lawson Whiting, CEO of Jack Daniel’s maker Brown Forman, said Wednesday that Canada’s province had removed us from store shelves was a “unbalanced response” to Levie imposed by the Trump administration, saying it was “worse than tariffs.”
Several Canadian provinces have removed US liquor from store shelves as part of retaliation against Donald Trump’s tariffs.
“I mean, that’s worse than tariffs, because it’s literally taking away your sales, and it’s completely removing our products from the shelves,” Whiting said in a post-profit call.
Canada on Tuesday imposed a 25% tariff on goods imported from the US, including wine, spirits and beer.
But Whiting said Canada accounts for just 1% of its total revenue, and the company can withstand the hit.
He added that the company will be aware of what will happen in Mexico. This accounted for 7% of sales in 2024, according to its annual report.
The company’s shares rose about 8% after liquor manufacturers reconfirmed their annual forecast taking into account the impact of tariffs.
While Whiting warned of “continuous uncertainty and headwinds in the external environment,” he said he was confident in the company’s trajectory.
Brown Forman has been shaking from the slowdown in demand so far this year. This is led by the US, Canada and Europe, and has benefited from strengthening sales in emerging markets such as Mexico and Poland.
The company is implementing cost-cutting measures, including labor reductions. Analysts say this is a response to a more challenging environment for both the company and the broader spirits industry.
