Faced with US ban, Canadian booze makers see yet more hurdles at home

With the US ban on many Canadian alcoholic imports taking effect on Tuesday, Canadian distillers, brewers, and winemakers face additional challenges within their own borders. John Cote, owner of Black Fox artisanal whisky and gin, explains that while he hoped to capitalize on the "buy Canadian" sentiment during the trade war with the US, shipping his products to stores nationwide will prove difficult.

Provincial regulations that grant monopolies to alcohol sales and often resist outside competition make it hard for Cote and others to gain shelf space. Ontario, Canada's largest province, recently launched a campaign promoting local products, but Cote admits to losing money on every bottle he sold at a recent event due to bureaucratic costs and delays.

A spokesperson for Canada's government acknowledges the need to streamline provincial regulations but admits there is much more to do. Liquor trade experts say provinces, which own and control alcohol stores and warehouses, are crucial to streamlining regulations, yet they have little incentive to act. Small distillers, in particular, are blocked from the US market, with many relying on larger global brands to fill the void.

Distillers like Lauchie MacLean of Nova Scotia, who traditionally sells to the US, see limited potential for Canadian buyers to compensate for the loss.