Bars and restaurants gird themselves for looming booze battle
Ontario premier ordered LCBO to remove U.S. liquor and wine if tariffs go ahead
Bars and restaurants in Ottawa are gearing up for a cross-border booze battle.
Ontario Premier Doug Ford said last week he'll ban the sale of American liquor and wine at LCBO stores if the U.S. follows through with President Donald Trump's 25 per cent tariff threat.
"I have sent a direction to the LCBO, if these tariffs come, to clear off every bit of U.S. alcohol off the shelves," Ford said last week. "Let's start promoting more Ontario-made wines and the vodkas and spirits."
The threat sent Jeremy Gaulin racing to stock up. He's the beverage director for Mati Inc., owner of several restaurants on Preston Street.
"I kind of freaked out when I found out, dropped what I was doing, ran to an LCBO and cleared off the shelves just in case," Gaulin told CBC's Ottawa Morning. "We don't know how long this battle will last, so we decided to be prepared."
Gaulin said customers want American wine and liquor, particularly bourbon — and that's good for his own bottom line.
"Bourbon and U.S. spirits have kind of a cult following. The profit margins on, especially Napa Valley wines, are very high," he explained.
Nor is it a simple matter of replacing one for the other, he said.
"Canadian whisky is amazing, but when people think of an Old Fashioned, they think of bourbon. That's a very big seller for us."
'Everybody can get over it'
Ivan Gedz had a different reaction to Ford's ultimatum. The owner of Union Local 613 on Somerset Street W. sees it as a potential opportunity to introduce patrons to something new.
"I think it's an opportunity for people to grab it by its horns and shift and maybe try different things," said Gedz. "We're very monkey see, monkey do ... because our buddy is drinking bourbon, well then I need to drink bourbon."
Gedz pointed out there are excellent whiskies from other countries including Japan, and said he hasn't sipped a Californian Cabernet in 10 years.
"There's a plethora of wines not only from Canada but from Europe that I would argue are vastly superior," he said. "I get why people like [U.S. wines] but ... everybody can get over it and drink something else."
Customers want what they want
While he agrees, Gaulin said customers want what they want, and he worries Ford's plan to fight tariffs could hurt his bottom line.
"Unfortunately, when it comes to California wines, they hit on all the notes that a lot of people are looking for. Sometimes the customer doesn't want to be challenged. They like what's comfortable," he said. "At the end of the day, we want to keep the lights on and we want to keep our guests happy."
American producers also don't want this fight to escalate, warning that "tit-for-tat" tariffs will cost American jobs.
"We hope [Canada] will consider not responding in kind," said Chris Swonger, president and CEO of the Distilled Spirits Council of the United States.
Swonger argued distinctive American liquors such as bourbon aren't interchangeable with Canadian spirits.
"They're not widgets," he said.
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With files from Ottawa Morning