How Canadian alcohol producers are adjusting in light of Trump’s threatened tariffs | Canada Voices

Even before the latest tariff threats from the Trump administration, Canadian alcohol producers have been buffeted by supply chain and order disruptions. But the proposed 50-per-cent sanction on a wide variety of products, including alcohol and related products, will effectively close any opportunities of selling to American consumers.

“It’s a game of dodgeball out here,” says Lane Matkovich, who founded the non-alcoholic beer brand, Nonny, with his brother Leigh Matkovich in Vancouver in 2022. “We’re trying to be nimble and be prepared for the unexpected.”

According to Lane, the idea behind Nonny was to bring the fun of the craft beer world to the non-alcoholic category. The brand has enjoyed success by focusing on sales in bars and restaurants, as well as securing distribution across the country, including with major retailers such as Whole Foods and London Drugs. While more than 90 per cent of sales are in Canada, the business started selling into the United States with a direct-to-consumer approach two years ago.

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Shipping into the U.S. has proven to be tricky since the trade dispute started, Lane explains. Border delays led them to establish a fulfilment centre in Washington. They sent pallets of their Pale Ale and West Coast IPA tariff-free under the existing trade agreement days before U.S. President Donald Trump’s latest tariff announcement this week. (As a fermented beverage, non-alcoholic beer falls under Mr. Trump’s new levies against Canadian alcohol.)

“It’s no longer viable for us if we have a 50-per-cent increase,” he says.

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Like many beverage producers, Nonny has also struggled with the fluctuating availability and cost of aluminum cans, which are their preferred format. They also cannot guarantee a consistent supply of hops, many of which are purchased from U.S. suppliers, to brew their three core non-alcoholic beers.

Pillitteri Estate Winery is another producer watching the news to see if the proposed sanctions, set to take effect Aug. 19, will stand.

“Even with all of this turmoil, we have seen growth in the U.S. market,” says Jamie Slingerland, director of viticulture for the family-owned Niagara-on-the-Lake winery, which exports its icewine to 40 countries.

The continuing uncertainty in the U.S. prompted Pillitteri to move inventory across the border to customers’ warehouses well ahead of their holiday schedule. “Most of our products are already in place for Christmas. Icewine is very much a gift item, so we plan many months in advance to avoid having to scramble,” he says.

Here are three products from Canadian producers facing uncertainty in their operations. They serve as placeholders for the many businesses and families affected by the continuing trade dispute who could benefit from a buy-local strategy.

Dillon’s Strawberry Rhubarb & A Zest of Lime (Ontario), $3.50

Dillon’s gin-based ready-to-drink cocktail recipes are inspired by Niagara’s bounty of produce. This refreshing flavour is based on summer staples, strawberries and rhubarb, brightened by lime and soda water. This has 5-per-cent ABV and 18 g/litre residual sugar. Drink now. Available in Ontario at the above price (355 ml), various prices in British Columbia, $4.49 (335 ml) in Saskatchewan, $3.99 (355 ml) in Manitoba ($3.49 until July 31), $4.98 (355 ml) in New Brunswick, $4.99 in Prince Edward Island, $5.23 in Newfoundland.

Nonny West Coast IPA (British Columbia), $13.99

Produced with Chinook, Columbus and Simcoe hops, this refreshing and flavourful IPA delivers classic pine needle and juicy citrus character. Its bold hop flavour carries through to a crisp finish. This has less than 0.5-per-cent ABV and 0 g/litre residual sugar. Drink now. Available for online orders at the above price (4 x 355 ml cans) direct, well.ca, $15.95 (4 x 355 ml) direct, upsidedrinks.ca, $50 (16 x 355 ml) direct, nonny.beer.

Pillitteri Carretto Gewürztraminer Riesling Fusion 2024 (Canada), $22

The Pillitteri family has found success producing a fruity and aromatic white blend of Gewürztraminer and Riesling from Niagara-on-the-Lake vineyards since the 1990s. The current release is packed with floral, citrus and lychee aromas and flavours as part of a nicely balanced off-dry wine with a persistent aftertaste. This has 12-per-cent ABV and 19.9 g/litre residual sugar. Drink now. Available direct, store.pillitteri.com