US alcohol group attacks NSLC markups on local spirits

The organization that represents some of the largest spirits producers in the United States is calling on the NSLC to remove a policy that gives a preferential markup to Nova Scotia spirits products.

In a recent 77-page report sent to the Office of the United States Trade RepresentativeThe Distilled Spirits Council of the United States has outlined the trade barriers they face in different countries.

The Canada section covers six pages, where obstacles include a ban on the sale of American alcohol in most provinces and preferential markups on local spirits in Alberta, Saskatchewan, New Brunswick, Prince Edward Island, Nova Scotia and Newfoundland and Labrador.

In Nova Scotia, spirits distilled in the province or blended and bottled in the province have mark-up percentages ranging from 50 to 80 percent, while all imported, non-Nova Scotia spirits have a mark-up rate of 160 percent.

The Distilled Spirits Council says these markups are inconsistent with trade deals “because they protect local products and discriminate against imported spirits.”

The council is seeking help from the U.S. government to “urge Canada and the provinces of Alberta, Nova Scotia, New Brunswick, Prince Edward Island, Saskatchewan, and Newfoundland and Labrador” to get rid of the NSLC policy.

It’s unclear why the board — which did not respond to an interview request — thinks other provinces have anything to do with the Nova Scotia Liquor Corporation.

The province’s Department of Intergovernmental Affairs said it has not received a formal complaint about the matter from the Distilled Spirits Council or the U.S. government through established trade dispute resolution mechanisms.

“Nova Scotia remains committed to meeting its trade obligations and working with our partners through appropriate channels,” the statement said.

The NSLC said it has always prioritized markups on local products as part of its mandate to support the Nova Scotia market. the alcoholic beverages industry and ensure a level playing field for local producers.

American spirits producers are in trouble

The report comes as global exports of U.S. spirits declined 9% in the first two quarters of 2025, compared to the same period last year.

“This slowdown reflects the impact of retaliatory tariffs and other measures, rising trade tensions and barriers to access in key markets,” the report said.

He also noted that international consumers appear to be purchasing domestic or other imports, “potentially in response to perceptions of unfair U.S. trade practices.”

The Craft Distillers Association of Nova Scotia declined an interview request. In a statement, executive director Fay Patey said the matter was “ultimately a government-to-government business issue.”

“What we can say is that the current provincial system in Nova Scotia is working as intended,” she wrote. “It supports local production, local jobs and local investment while offering consumers a wide range of imported products.”

Economic Impact of Nova Scotia Distilleries

Patey said that by 2024, Nova Scotia distilleries employ more than 100 full-time employees and a comparable number of part-time and seasonal employees. Businesses are also using more 110,000 kilograms of local agricultural products each year.

Patey said the association hopes long-standing collegial trade relations will be restored between Canada and the United States.

“Historically, this system worked well for everyone,” Patey wrote. “However, any resolution regarding U.S. tariff policy should not come at the expense of provincial programs designed to support local producers who create jobs and economic value here in Nova Scotia.”

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