How will U.S. liquor bans impact local restaurants?

The move is being celebrated by many across the province, as the “buy Canadian” movement continues to pick up steam as more shoppers make a conscious effort to avoid American products. However, the Alliance of Beverage Licensees, which represents the sector in B.C., says there are often no easy substitutes for U.S. liquor that is now banned. Locally, some restaurant owners agree there will be a challenge, although confidence remain that things will be ok.

“It’s a time when we’re learning as much as everybody else, and anything that affects your business is a challenge. But I think that we’re going to be fine, and we’re going to have to do some work to find the products to fill our portfolio as a business, but I think that we’re already well on our way,” said The Black Clover Owner Troy McKenzie.

Will there be financial challenges that come with these bans? McKenzie believes it should largely be ok, as there are a variety of options both Canadian and non-American that should, for the most part, be able to replace lost product. However, there will be some that are much harder to replace than others.

“Bourbon is probably the most challenging. Obviously, the U.S. wine market is huge and they have a lot of products from California, Washington and Oregon. We have all of them, so those products, as they go away, we have to do a better job of digging into the market in Canada and also the other winemaking nations around the world and find things that complement our lists and also will fill those voids,” McKenzie said.

As for potential revenue loss, McKenzie says in the early days of the full ban of American liquor he’s had conversations with his customers which have been largely supportive.

“Most of it’s been positive. They’re disappointed that some of these products are taken off the shelf. But I think everybody understands what’s happening with these tariffs, and they’re ready to support more local products,” he said.

The ban only impacts U.S.-made liquor products imported into Canada, meaning U.S. brands produced by Canadian breweries like Labatt or Molson are safe.

“These companies are Canadian owned and they’re bottled in Canada. So products like Budweiser, Molson Canadian, we’re still allowed to provide those to our consumers,” McKenzie explained.

While The Black Clover expects things to be ok amid economic uncertainty in a trade war that sees almost daily changes, McKenzie knows there will be significant change and adjustments that have to be made going forward.

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by Tommy Osborne

How will U.S. liquor bans impact local restaurants?

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