U.S. alcohol group takes intention at NSLC’s markup on native spirits

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The group that represents a few of America's largest spirits producers is asking for the NSLC to take away a coverage that offers preferential markup to Nova Scotian spirit merchandise.

In a current 77-page report despatched to the Workplace of america Commerce Consultant, the Distilled Spirits Council of america outlined commerce limitations they face in numerous nations.

The Canada part covers six pages, the place the limitations embrace the ban on promoting American alcohol in most provinces and preferential markups on native spirits in Alberta, Saskatchewan, New Brunswick, P.E.I., Nova Scotia, and Newfoundland and Labrador.

In Nova Scotia, spirits distilled within the province or blended and bottled within the province have markup percentages that vary from 50 to 80 per cent, whereas all imported and non-Nova Scotia spirits have a markup price of 160 per cent.

The Distilled Spirits Council says these markups are inconsistent with commerce agreements "because it gives safety to native merchandise and discriminates towards imported spirits."

<img loading="lazy" alt="An NSLC employee is shown removing bottles of Jack Daniel's from a store shelf earlier this year as part of the corporation's response to the trade war with the U.S." srcset="https://i.cbc.ca/ais/0b2f4a31-d38b-4623-88a4-1c38d1f7b0db,1766088835094/full/max/0/default.jpg?im=Crop%2Crect%3D%280%2C0%2C4032%2C3024%29%3BResize%3D805 805w,https://i.cbc.ca/ais/0b2f4a31-d38b-4623-88a4-1c38d1f7b0db,1766088835094/full/max/0/default.jpg?im=Crop%2Crect%3D%280%2C0%2C4032%2C3024%29%3BResize%3D1104 1104w,https://i.cbc.ca/ais/0b2f4a31-d38b-4623-88a4-1c38d1f7b0db,1766088835094/full/max/0/default.jpg?im=Crop%2Crect%3D%280%2C0%2C4032%2C3024%29%3BResize%3D1280 1280w" sizes="(max-width: 762px) 93.6vw,730px" src="https://i.cbc.ca/ais/0b2f4a31-d38b-4623-88a4-1c38d1f7b0db,1766088835094/full/max/0/default.jpg?im=Crop%2Crect%3D%280%2C0%2C4032%2C3024%29%3B" style="aspect-ratio:1.3333333333333333" data-cy="image-img"/> An NSLC worker removes bottles of Jack Daniel's from a retailer shelf earlier this 12 months as a part of the company's response to the commerce battle with the U.S. (Nova Scotia Liquor Company) The council asks for assist from the U.S. authorities in "urging Canada and the provinces of Alberta, Nova Scotia, New Brunswick, Prince Edward Island, Saskatchewan and Newfoundland and Labrador" to eliminate the NSLC coverage.

It is unclear why the council — which didn't reply to an interview request — thinks the opposite provinces have one thing to do with the Nova Scotia Liquor Company.

The province's Intergovernmental Affairs Division stated it has not acquired a proper criticism about this matter from the Distilled Spirits Council or the U.S. authorities by established commerce dispute mechanisms.

"Nova Scotia stays dedicated to assembly its commerce obligations and fascinating with companions by acceptable channels," stated the assertion.

The NSLC stated it is traditionally had most well-liked markups on native merchandise as a part of its mandate to assist Nova Scotia's beverage alcohol trade and guarantee a stage taking part in subject for native producers.

U.S. spirit producers battle The report comes as world U.S. spirit exports declined 9 per cent by the primary two quarters of 2025, in contrast with the identical interval a 12 months in the past.

"This downturn displays the affect of retaliatory tariffs and different actions, rising commerce tensions, and market entry limitations in key markets," the report says.

It additionally famous worldwide customers look like buying home or different imports, "doubtlessly in response to perceptions of unfair U.S. commerce practices."

The Craft Distillers Affiliation of Nova Scotia declined an interview request. In a press release, govt director Fay Patey stated the matter is "in the end a government-to-government commerce problem."

"What we will say is that the present provincial system in Nova Scotia has been working as supposed," she wrote. "It helps native manufacturing, native jobs, and native funding whereas nonetheless offering customers with a variety of imported merchandise."

Financial affect of Nova Scotian distilleries Patey stated that in 2024, Nova Scotian distilleries employed greater than 100 full-time staff and a comparable variety of part-time and seasonal employees. The companies additionally use greater than 110,000 kilograms of native agricultural merchandise every year.

Patey stated the affiliation hopes that the long-standing, collegial commerce relationship is restored between Canada and the U.S.

"Traditionally, that system labored properly for everybody," Patey wrote. "Nevertheless, any decision to U.S. tariff coverage mustn't come on the expense of provincial applications designed to assist native producers who're creating jobs and financial worth right here in Nova Scotia."