He called it "worse than a tariff"
Lawson Whiting, the CEO of Brown-Forman (Jack Daniel's maker), called Canada's decision to remove American liquor from store shelves "worse than a tariff" and a “disproportionate response” to levies imposed by the Trump administration.
Different Canadian provinces have implemented the measure as retaliation against U.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,” Whiting said on a post-earnings call.
On Tuesday, Canada also imposed a 25% tariff on various U.S. imports like wine, spirits, and beer.
However, Whiting said that Canada only accounts for 1% of Brown-Forman's total sales. He added the company will monitor developments in Mexico, as it contributed 7% of the company's 2024 sales.
Brown-Forman's shares increased about 8% after the company reaffirmed its annual forecasts, accounting for the tariffs' impact.
While Whiting warned of “continued uncertainty and headwinds in the external environment,” he said that he was confident of the company’s trajectory.
Brown-Forman has been reeling from slowing demands in key markets, including the U.S., Canada and Europe, which has outweighed strong sales in emerging markets like Mexico and Poland.
The company has implemented cost-cutting measures as a response. Analysts attribute these moves to a tougher operating environment for the company and the broader spirits industry.
Net sales declined 3% year-over-year to $1.04 billion, compared with analysts’ expectations of $1.07 billion, according to LSEG data.
For fiscal 2025, Brown-Forman expects net sales growth in the range of 2% to 4%.
