Lawson Whiting, CEO of Jack Daniel's maker Brown Forman, said Wednesday that Canada's province was “a disproportionate response” to taxes imposed by the Trump administration, saying it was “worst than tariffs” for the Canadian province to steal American liquor from store shelves.
Several Canadian provinces have removed US liquor from store shelves as part of a retaliation measure against President Donald Trump's tariffs.
Canadians are moving away from US goods, sporting events and travel following the recent tariff imposition.
“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 only accounted for 1% of the company's total revenue, Whiting said, so the company could withstand the hit.
Canada on Tuesday imposed a 25% tariff on goods imported from the US, including wine, spirits and beer.
Whiting added that the company will be aware of what will happen in Mexico. This accounted for 7% of revenue in 2024, according to the annual report.
Canadians are trying to help local people by adapting a variety of methods, such as boycotting US alcohol brands, changing kitchen pantry with local products.
Brown Forman shares fell more than 3% on Thursday.
The liquor manufacturer has reaffirmed its annual forecast taking into account the impact of tariffs.
While Whiting warned that “uncertainty and headwinds in the external environment continue,” he said he is 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.
According to data compiled by LSEG, analyst estimates fell 3% to $1.04 billion, compared to $1.07 billion, net sales fell 3% from a year ago to $1.04 billion.
For fiscal year 2025, Brown Forman expects net sales growth in the range of 2% to 4%.
