Canadian Spirits Exported Internationally Down 5.1% During 2017

The value of Canadian Spirits exports declined from $674.7 million to $639.9 million. Despite this drop, Spirits still accounted for 68% of the value of all Canadian beverage alcohol exports in 2017, far surpassing the combined value of beer, cider and wine exports.

TORONTO -- According to Statistics Canada, the value of Canadian Spirits exported internationally declined 5.1% during calendar 2017 from the previous year.

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"The March 2017 Federal Budget that increased Canadian liquor excise duties immediately by 2% to 7.8% on Canadian Whisky and other Canadian alcohol products, with automatic annual increases every year thereafter, had a negative impact as manufacturers and brand owners sought to reduce costs and throttled back on their investments domestically and internationally", said Jan Westcott, Spirits Canada President & CEO.

The value of Canadian Spirits exports declined from $674.7 million to $639.9 million. Despite this drop, Spirits still accounted for 68% of the value of all Canadian beverage alcohol exports in 2017, far surpassing the combined value of beer, cider and wine exports.

Canadian Whisky accounted for $365 million of the total value of Canadian Spirits exports, followed by Liqueurs at $155 million. Vodka, Gin, Rum and grain neutral spirits accounted for the remainder.

"While Canadian excise duties are not charged on products exported outside of Canada, the hike in taxes in our home market has already begun to further erode the competitiveness of Canadian Spirits manufacturers, a decline we fear that will only accelerate in 2018 with the cut in Spirits excise duties by the United States earlier this year", explained Mr. Westcott. "Canada urgently needs liquor excise duty reform and an elimination of the damaging annual "escalator tax" to bring fairness to Canadian whisky makers and we hope Minister Morneau will address this issue in his upcoming Budget."

Minister Morneau confirmed earlier this week that the 2018-2019 federal Budget will be tabled in the House of Commons on February 27th.

SOURCE Spirits Canada