The constant trade between the United States and Canada, fueled by President Trump’s rates on Canadian goods, is ready to shake up the North -America -Drinkmarkt.
The Liquor Control Board (LCBO) from Ontario, which usually has almost £ 570 million (ca $ 1 billion) in American drinks made in stock, has started removing American products as a retribution at Washington’s 25 percent rates on Canadian import.
According to Melissa Thomas, head of the Canada Desk at audit, tax and consultancy firm Blick Rothenberg, this development offers British brewers and distillers an excellent opportunity to break into a lucrative segment of the Canadian market. While the LCBO controls the wholesaler of alcohol in Ontario, the ban of the American beer, wine and spirits stops effectively from reaching most local restaurants, retailers and bars.
Even if Canadian producers try to get in, Thomas notes that the American rates on steel and aluminum can undermine their ability to bridge the gap. Meanwhile, American brands such as Californian wines, Kentucky Whiskeyys and Tennessee Bourbons are suddenly looking for new export destinations, after they have lost a key walk north of the border.
The timing could not be better for British producers. Given the current “Anti-American” sentiment from Canada, consumers can be more receptive to a Scottish whiskey, sparkling wine from the southern downs or a Kentish Bitter in the shopping boards. In the United States, producers can also see the United Kingdom as a promising alternative, thanks to a historically narrow trade relationship and the long -term role of Great Britain as gateway to European markets.