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Ottawa Distilleries Find Silver Lining in Trade War, Booze Ban Worries Loom

Ottawa-area craft distillers say the trade war with the U.S. has actually boosted business for small-batch Canadian spirits so far. But the latest round of tariffs and a possible U.S. alcohol import ban has them bracing for a rockier road ahead.

·By ·3 min read·Updated
Ottawa Distilleries Find Silver Lining in Trade War, Booze Ban Worries Loom
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A Silver Lining, So Far

Ottawa area craft distillers say the trade war with the United States has, for now, worked more in their favour than against them, even as a new American ban on Canadian booze looms at the end of the month. Adam Brierley, general manager at SFR Distillery in Ottawa, says the trade turbulence hasn't hit his company yet. "We can just kind of hang out below the waves," he said.

Ottawa Shoppers Buying Local

Adrian Spitzer, president of Dunrobin Distilleries, based in Vankleek Hill, said the shift toward Canadian-made bottles matters more than ever right now. "Canadians need to support Canadians now more than ever," he said.

SFR Looks West and Overseas

Rather than banking on the U.S. market, SFR Distillery is expanding across Canada instead. Manitoba is first up, with the company launching there starting the following week, and outlets in Alberta and B.C. to follow.

Brierley is also focusing on finding customers in Europe and in other provinces, rather than chasing growth south of the border. That approach mirrors Prime Minister Mark Carney's own push to find new European markets for Canadian goods in the wake of U.S. President Donald Trump's move to ban the import of Canadian alcohol.

The Ban Takes Effect September 29

The bigger story looming over Ottawa's distilling scene is Washington's alcohol import ban, which Trump announced this past week. The restriction takes effect September 29, following Canada's own decision earlier that week to impose retaliatory duties on American goods. It would affect a wide range of Canadian alcohol products crossing the border.

The exposure is significant for the industry as a whole. More than half of all spirits produced by Canadian distilleries are shipped to the United States, making distilleries one of the most exposed sectors in the entire trade dispute.

A Different Kind of Threat

He's more concerned about what larger Canadian producers do with alcohol they can no longer ship south.

What It Means Going Forward

For now, the picture for Ottawa-area distillers is a genuinely good one: local buyers reaching for homegrown bottles, and companies like SFR and Dunrobin using the moment to grow rather than retreat. But with the September 29 deadline approaching and more than half of the national industry's spirits normally destined for the U.S., the next few weeks will show whether that local boost can outlast the disruption headed for the rest of the sector.

Sources: Yahoo News Canada (CBC wire republish), Barrie 360

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