U.S. alcohol ban threatens Cape Breton distillery, but winemakers look local

U.S. alcohol ban threatens Cape Breton distillery, but winemakers look local

One distillery fears severe fallout, but N.S. winemakers and brewers focus on local markets

A prominent Nova Scotia distillery fears that a recent U.S. presidential order banning the sale of Canadian alcohol could hit its bottom line hard.

Lauchie MacLean, president of Glenora Distillers in Mabou, N.S., said 33 to 40 per cent of its sales over the past few years went to the U.S.

The ban on Canadian alcohol, motorcycles, molasses and other goods follows retaliatory tariffs Canada imposed on select American imports. The ban takes effect Sept. 29.

It is not the first time the single-malt whisky distillery has lost a major export market. Glenora Distillery used to sell a significant amount of its product to Russia, but MacLean said that also changed.

"A leader [in Russia] messed it up and now we got another leader in the U.S. messing us up again," MacLean said.

While Glenora ships small orders to Asia, MacLean said the business cannot "turn on a dime" to replace U.S. demand, adding a new long-term market strategy can take years.

Other Nova Scotia producers remain largely unbothered.

Melissa Herbin, executive director of Wine Growers Nova Scotia, said only a small fraction of local wine goes to the U.S.

"It doesn't really have a direct financial challenge for us," said Herbin, whose organization represents 19 wineries. Instead, she sees an opportunity to expand interprovincial trade.

Herbin said that agreements like the one signed by Ontario and Nova Scotia set the scene for opening markets between provinces, but more could be done to expand that.

“Our members still do need to register through [the Liquor Control Board of Ontario] to track their sales, but they're able to now sell directly to a consumer,” she said. “But following up on that, we would love to be able to sell directly to restaurants, to hotels.”

In a statement to CBC News, the Nova Scotia Department of Intergovernmental Affairs said it cannot control decisions in Washington, but is "doing everything possible to protect Nova Scotian workers and businesses," including removing internal trade barriers. The department added it is working directly with industry leaders to assess the full impact.

Andrew Tanner, president of the Craft Brewers Association of Nova Scotia, said none of its 52 members exports to the U.S.

"I think the market has certainly been focused on Nova Scotia as a whole. I think some have certainly looked to New Brunswick and P.E.I. and Newfoundland for some sales opportunities there," he said.

Tanner added that a surge in buy-local support has continued to benefit local craft brewers.

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Giuliana is an award-winning journalist in Nova Scotia interested in fisheries, rural communities, the environment, and more. Got a story idea? Email it at giuliana.grillo.de.lambarri@cbc.ca.