Key Takeaways:
- The "Buy Canadian" movement has led to a significant decline in bourbon sales in Canada, with exports dropping by 60% from January to September.
- Canadian craft whisky makers are seeing an opportunity to fill the gap left by bourbon and are producing their own versions of the spirit.
- The federal Spirit Drinks Trade Act of 2006 restricts the use of names of alcohol produced in specific geographic areas in foreign countries, such as bourbon, scotch, and cognac.
- Some Canadian distilleries are bottling bourbon-style whisky variations, such as BRBN and Berbon, to cater to those still craving the taste of Kentucky bourbon.
- The global downturn in whisky and liquor sales is also attributed to people eschewing alcohol and the rise of cannabis beverages.
Introduction to the Bourbon Drought
It’s been a long time since many Canadians have felt the burn of a smooth, Kentucky bourbon. The familiar aromatic, spicy, and sometimes smoky flavor of bourbon has been but a memory for consumers in this country for much of the past year. This is due to the "Buy Canadian" movement, which was sparked by U.S. President Donald Trump’s tariff war and threats to make Canada the "51st state." As a result, angry consumers and lawmakers have united behind the movement, and bourbon has been caught in the crossfire.
The Rise and Fall of Bourbon in Canada
Bourbon really began to boom in Canada a little over a decade ago, thanks to aggressive marketing campaigns and consumers looking for something different from traditional Canadian whisky. According to Ottawa-based whisky expert Davin de Kergommeaux, bourbon’s surge in popularity came to an abrupt halt over the past year, thanks largely to Canada’s distaste for U.S. President Donald Trump’s tariffs and rhetoric. De Kergommeaux, who literally wrote the book on Canadian Whisky, believes the liquor landscape in Canada may have changed for good.
The Challenges Facing the Bourbon Industry
The bourbon industry is facing significant challenges, including a 60% drop in exports to Canada from January to September, compared to the previous year. Bourbon producers have been pleading with provinces to resume stocking U.S. booze, and with the Trump administration to ease trade tensions. However, the industry is also facing a global downturn in whisky and liquor sales, which is attributed to people eschewing alcohol and the rise of cannabis beverages. According to Craig Peters, founder and CEO of Maverick Distillery in Oakville, Ont., there’s been a glut of bourbon as a result of overproduction in the past few years.
The Rise of Canadian Craft Whisky
Despite the challenges facing the bourbon industry, Canadian craft whisky makers are seeing an opportunity to fill the gap left by bourbon. Peters says that his company, Maverick Distillery, had already been importing barrels of bourbon from the U.S. to produce a line of its own blended whisky. However, the company is now also bottling "straight up 100 per cent bourbon," which is labelled as Kentucky whisky due to the federal Spirit Drinks Trade Act of 2006. This act restricts the use of names of alcohol produced in specific geographic areas in foreign countries.
The Impact on Canadian Distilleries
The "Buy Canadian" movement has had a significant impact on Canadian distilleries, with many seeing an increase in sales. De Kergommeaux says that rather than worrying about a downturn, Canadian producers big and small are having trouble keeping up with demand. He notes that people have been trying to find bourbon and trying to find Canadian whisky that tastes like bourbon, and in the process, they have been tasting a lot of Canadian whiskies and wishing they had given them a chance sooner.
The Future of Canadian Whisky
The future of Canadian whisky looks bright, with many distilleries producing high-quality spirits that can compete with bourbon. De Kergommeaux is excited to see a Canadian product back in the spotlight and thriving. He notes that some other distillers across the country have begun blending bourbon-style whisky variations, with names like BRBN and Berbon, to cater to those still craving the taste of Kentucky bourbon. While these substitutes don’t taste quite the same, de Kergommeaux suggests that many are quality whiskies that can be used in a Manhattan or sipped straight up with a couple drops of water.
Conclusion
In conclusion, the "Buy Canadian" movement has had a significant impact on the bourbon industry, with exports to Canada dropping by 60% from January to September. However, Canadian craft whisky makers are seeing an opportunity to fill the gap left by bourbon and are producing their own versions of the spirit. The federal Spirit Drinks Trade Act of 2006 restricts the use of names of alcohol produced in specific geographic areas in foreign countries, such as bourbon, scotch, and cognac. As the global downturn in whisky and liquor sales continues, Canadian distilleries are poised to thrive, with many producing high-quality spirits that can compete with bourbon.