Jack Daniel’s maker says Canada pulling US alcohol | Australian Markets
Jack Daniel’s maker Brown-Forman’s chief govt Lawson Whiting says Canadian provinces taking American liquor off store cabinets was “worse than a tariff” and a “disproportionate response” to levies imposed by the Trump administration.
A number of Canadian provinces have taken US liquor off store cabinets as half of retaliatory measures in opposition to President Donald Trump’s tariffs.
“I mean, that’s worse than a tariff, because it’s literally taking your sales away, (and) completely removing our products from the shelves,” Mr Whiting stated on a post-earnings call.
Canada on Tuesday additionally imposed 25 per cent tariffs on items imported from the US, together with wine, spirits, and beer.
Mr Whiting, nevertheless, stated that Canada accounted for just one per cent of their complete gross sales and will stand up to the hit.
He added the company would watch out for what occurs in Mexico, which in line with its annual report, made up 7 per cent of its 2024 gross sales.
Shares of the company had been up about 8 per cent after the liquor maker reaffirmed its annual forecasts which accounted for the influence of tariffs.
Whereas Whiting warned of “continued uncertainty and headwinds in the external environment”, he stated that he was assured of the company’s trajectory.
Brown-Forman has been reeling from a slowdown in demand thus far this yr, led by the US, Canada and Europe, which offset advantages from stronger gross sales in rising markets reminiscent of Mexico and Poland.
The company has undertaken cost-cutting measures, together with workforce discount. Analysts have stated that is a response to a more difficult atmosphere each for the company and the broader spirits industry.
Web gross sales fell 3 per cent from a yr in the past to $1.04 billion, in contrast with analysts’ estimate of $1.07 billion, in line with knowledge compiled by LSEG.
For fiscal 2025, Brown-Forman expects internet gross sales growth within the vary of 2 to 4 per cent.
CNBC
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