Sask. whisky producer hopeful tariffs get consumers shopping local

Although Saskatchewan's liquor commission says its sales of American whisky are slim, one local producer in Saskatchewan hopes the trade battle could see more people turning to Canadian-made products. 

Starting July 1, 10 per cent tariffs came into effect on a variety of U.S goods — from coffee and ketchup to toilet paper and cast iron grills. It's all part of an escalating trade battle with the U.S., which levied tariffs on Canadian steel and aluminum. 

American whisky is one of the products Canada targeted, which some experts say is part of the country's strategy to hit back against Republican states like Kentucky.

Cary Bowman is president of Lucky Bastard Distillers based in Saskatoon, which makes home-crafted liquors like vodka and whisky. He's optimistic this trade battle could see Canadian consumers and liquor retailers reaching for local products like his, as opposed to importing from south of the border. 

"Hopefully it will have a benefit to Canadian producers, us being a Canadian whisky distillery," he said. 

American whisky a small portion of market

A spokesperson for the Saskatchewan Liquor and Gaming Authority said it will begin collecting the 10 per cent tariff on American whiskies. 

"As a result, if a manufacturer lowers their base price to absorb the new tariff, the wholesale prices will not change. If the manufacturer keeps their base price the same, then the wholesale price will increase and consumers will likely notice a different price," read a statement emailed to CBC, adding the exact change in price is still in question. 

"It is important to note, that the sale of American whiskies account for a very small portion of the Saskatchewan market (less than one per cent of all spirit sales in the province). So we expect the impact on Saskatchewan consumers to be minimal."

Canadian whisky distillers could be at risk 

Bowman said doing the math, if a consumer has to pay a 10 per cent tariff on bottle of Jim Beam, for example, that will amount to only few dollars. 

"It's one of these things that may actually cause more damage to the spirits market in Canada than just consumer sales," he said.

"Especially if the U.S. retaliates with tax measures or duties applied to Canadian spirits that are shipped to the U.S."

That worry is echoed by some Canadian distillers who fear the tariffs could spark reciprocal levies against Canadian
whiskies sold into the bigger U.S. market.

In 2017, 157.5 million litres of Canadian whisky was sold in the States, according to the Distilled Spirits Council — up 2.4 per cent from the previous year.

Jim Bence, CEO of the Saskatchewan Hotel & Hospitality Association, said typically price hikes on liquor products are passed onto the consumer, but that he doesn't think it's enough to dissuade fans from sipping their favourite bourbons. 

He plans to watch how consumer habits could change based on the price and the trade war with the U.S in general, and said he sees more people reaching to local products. 

"I think Canadians, when you think Canada and you think about hard liquors, we do think whisky."