FAQ: Canada’s Ban on U.S. Alcohol and Its Impact on Sagamore Spirit

What is the main topic of this content?

The main topic is Canada’s ban on U.S. alcohol imports and its significant financial impact on Sagamore Spirit, a craft distillery based in Baltimore.

Why is Canada banning U.S. alcohol?

The ban is a response to U.S. tariffs targeting Canadian goods, leading Canadian provinces to halt orders of U.S. spirits, beer, and wine.

How has Sagamore Spirit been affected by the ban?

Sagamore Spirit expects to lose roughly $2 million in sales this year, equivalent to about 1,200 nine-liter cases of rye whiskey, significantly impacting their export business.

Who is Robert Cullins and what did he say about the situation?

Robert Cullins is the CEO of Sagamore Spirit, who noted that the $2 million loss is significant for a small craft distillery like theirs, especially after the time invested in securing Canadian market approval.

Where is the ban on U.S. alcohol most noticeable in Canada?

In Ontario, where the Liquor Control Board once sold hundreds of millions of dollars’ worth of American alcohol annually, shelves are now stocked almost exclusively with Canadian brands.

What are the implications of this ban for U.S. distillers?

U.S. distillers, including Sagamore Spirit, are left with shipments stalled in storage and no clear path back to Canadian consumers, while Canadian producers like Maverick Distillery see sales rise.

How long does it take to secure Canadian market approval for a product?

It often takes up to three years to secure Canadian market approval for a single product.

What percentage of Sagamore Spirit’s export business did Canada account for before the ban?

Canada accounted for about 10% of Sagamore Spirit’s export business before the ban.