HomeFinanceNSLC Sells 90% of American Alcohol Inventory

NSLC Sells 90% of American Alcohol Inventory

The NSLC reported that approximately $1.5 million worth of American alcohol remained in its inventory, representing a 10% stock level compared to when U.S. products were initially removed from shelves. Nova Scotia’s Crown-operated alcohol retailer and distributor disclosed that over $1.8 million of American alcohol was sold in the first quarter from April 1 to June 28.

As of August 17, the NSLC confirmed that around $1.5 million of American stock was still available, indicating that 90% of the U.S. alcohol inventory has been sold, with no intentions to restock. The decision to cease purchasing American alcohol was made in January 2025, leading to the removal of these products from shelves in March 2025 as part of Canada’s response to the U.S. trade war.

The retail value of the removed alcohol amounted to $14,896,652, comprising over 600,000 units. In December, the NSLC resumed selling the warehoused American products, with proceeds directed towards community food groups. Subsequently, 315 organizations were set to receive grants totaling $5.3 million from these sales, with individual amounts ranging from $1,000 to $350,000.

The availability of American alcohol products varies across provinces, with some like Alberta having full availability while the LCBO in Ontario does not offer U.S. alcohol due to being one of the world’s largest alcohol purchasers.

The decision of several Crown-run alcohol retailers to halt American alcohol purchases has negatively impacted the U.S. alcohol industry and has become a significant trade issue. Chris Swonger, CEO of the Distilled Spirits Council of the United States, expressed concerns over the impact of these actions on the industry, emphasizing ongoing efforts to address the situation.

Globally, American alcohol exports decreased by 3.8% in 2025, primarily due to the boycott of U.S. alcohol in many Canadian provinces. Excluding Canada, spirit exports would have seen a 2.5% increase for the year. Last year, Brown-Forman, the parent company of Jack Daniel’s whiskey and Woodford Reserve bourbon, reported a 62% drop in sales to Canada during its first fiscal quarter.

In Nova Scotia, American alcohol products are defined as those produced in the U.S., leading to the availability of certain U.S.-branded beers brewed in Canada. Products like Southern Comfort remain on NSLC shelves as they are manufactured in Montreal.

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