It’s officially been one year since Ontario’s liquor aisles turned into the unlikely battlegrounds in a trade fight with the United States.
California cabernets vanished from the shelves and Kentucky bourbons disappeared from the aisles in a retaliatory move made by Ontario Premier Doug Ford against U.S. President Donald Trump’s sweeping tariffs, transforming everyday shopping into a subtle act of economic defiance.
More than 3,600 American-made alcohol products were pulled from LCBO shelves and taken off the menus at restaurants and bars across the province, marking an “enormous hit” to U.S. producers as Ontario said it had sold $965 million worth of their alcohol annually.
Ontarians were now forced to find alternatives, particularly with bourbon which is a trade-protected item that can only officially be made in the U.S.
- READ MORE: ‘Far-reaching consequences’ for Kentucky bourbon after LCBO strips U.S. spirits off shelves
One year later, many local distilleries and wineries say they have reaped the benefits from the move.
“When the bourbon got pulled off the shelf, we had just released a corn whisky,” Don DiMonte, president and co-founder of Vaughan’s Last Straw Distillery, told CTV News Toronto.
This particular whisky was made from 100 per cent corn that was locally grown and malted in York Region. Bourbon is traditionally comprised of 51 per cent corn—so DiMonte’s product qualified as an alternative.
“Normally, a cask might take us six months to a year to sell like a barrel’s worth of whisky, and that sold out in no time because it was like a bourbon alternative,” DiMonte recalled.
Whisky takes time to produce, DiMonte added, as it typically has to be in a barrel for at least three years. Last Straw’s corn whisky took five-and-a-half years, DiMonte says, so it will take time for the taps to turn on for this particular back-up bourbon.
While DiMonte wishes he could churn out more to keep up with the demand that Last Straw has seen over the last year, he says he appreciates the local support to his Vaughan-based distillery.
“If they come here, they’re getting something produced local in the neighbourhood,” DiMonte said, though he notes how consumers are looking at their dollars when purchasing alcohol due to the ongoing trade war as the average bottle of Last Straw whisky can go for around $70.
Graham Reid, owner of Reid’s Distillery located in Toronto’s Riverdale neighbourhood, says the past year has seen some welcome changes for his business—particularly when the LCBO opened up a new category supporting locally-sourced alcohol.
“We were able to increase our distribution of our vodka, which was really kind of an exciting thing for us,” Reid said. “Usually, products take about a year for approval at the LCBO. This was on the shelf within a month.”
It also opened the doors for Reid’s canned gin and tonic product, which he says has been the distillery’s top seller over the last year.
“They have these initiatives that really help support the smaller players and that helped our gin and tonic compete with some of the biggest players out there,” Reid said.
Though Trump’s tariff on aluminum, which increased from 25 per cent to 50 per cent last June, has also impacted business negatively.
“We understand challenge, we see it on our product, our gin and tonic is in a can. Fortunately, what we are seeing is there is a push to start producing cans and things like that here in Canada,” Reid said adding how he has started developing relationships with producers in the East Coast.
“As a small business, whether it be a spirits manufacturer or any small business in Ontario, tariffs are very challenging to navigate and so having that assurance that, ‘OK, our community is out here to support,’ was very welcoming.”
What about wine?
Since American wines and vintages have been removed, Michelle Wasylyshen, president and CEO of Ontario Craft Wineries, says the market for provincially grown wines has seen a 60 per cent rise in sales year over year.
“That’s super exciting for our industry, and it’s absolutely unprecedented growth,” Wasylyshen told CTV News Toronto.
Dean Foerter, executive director of Wines of Ontario, said that devout Californian wine drinkers were pushed to find alternatives, bringing them to discover local products. But outside of retaining new loyal customers, Foerter says consumers are turning to more prestige wines as they become more brand loyal to particular vineyards.
“There’s a confidence growing because if it were just about shelf replacement, people would be trading down, but they’re not. They’re actually trading up,” Foerter said. “Between the fact that we’re seeing sort of a long-term behaviour shift, and the fact that people are trading up to the higher quality wines … we’re proving ourselves on our merits.”
When a consumer buys an Ontario VQA wine, all of that money flows right back into the local economy.
“It supports farm families, it supports tourism, it supports sustainability, it supports economic development, transportation, you name it, and 100 per cent of that expenditure stays within the province,” Wasylyshen explained.
“Consumers are listening like never before and that’s because of the growth and the buy Ontario, buy local and buy Canadian sentiment.”
Even during “dry January,” where adults turn from cocktails to mocktails and wine sales remain stagnant, Wasylyshen says the sales growth has been “dramatic” year over year.
“(Today) is the one-year anniversary. I’m excited to see what happens over the next six months, nine months, 12 months,” Wasylyshen said.
In terms of what wines have been performing well over the last year, Foerter pointed to one grape in particular: Chardonnay. It’s a wine he says the province can really go “toe-to-toe” on.
“The regions that used to be the best regions are overheating at this point and that has an impact on the wine,” Foerter said. “Our cool climate, it gives us a lot of advantages that weren’t probably perceived before.”
Foerter also pointed to a rise in popularity in Ontario’s Pinot Noir and sparkling wines.
What’s next?
It remains unclear how long American liquor will be banished from Ontario, though Ford indicated earlier in February that he had no plans to reconsider the ban despite renewed criticism from U.S. President Donald Trump.
“I encourage people not to back off. This is key that we even double down if we have to. We’re the largest purchaser of alcohol in the entire world, and that’s one of our key negotiating areas that we can resolve within a minute. All President Trump has to do is get rid of the unfair tariffs he’s putting on,” Ford said at the time.
Ford took his “team Canada” approach a step further after inking a deal with Nova Scotia Premier Tim Houston on Monday, in a move that will allow consumers the option to buy alcohol directly from local producers in each province as a way to boost internal trade within Canada.
With files from CP24’s Joshua Freeman
