Ontario Premier Doug Ford has promised to keep U.S. alcohol off LCBO shelves until the tariffs placed on Canadian goods by President Donald Trump are dropped 'entirely.'
A lot of it is likely on consignment, especially distributors and liquor stores, so the distiller doesn’t get paid for it until it’s sold. So it can either sit in a warehouse or the distiller can take it back, it’s their choice.
In cases where it isn’t on consignment, warehousing it rather than selling what you’re already paid for at least ensures that the distiller is impacted by the entire duration of the tariff, as people can’t still buy their product for a while while it lasts and then the seller just immediately resupplies when the tariff is over. Storing it means when the tariff is over there’s still a supply to sell before they purchase more from the distiller. This would be the situation for bars and such, but it’s a big liability sitting on their books, so I imagine most will probably sell their remaining stock, which I can understand.
What do they with the liquor they take off the shelves? Stick it in a warehouse somewhere and wait?
It’s sold on consignment, so they just ship it all back to the producers.
A lot of it is likely on consignment, especially distributors and liquor stores, so the distiller doesn’t get paid for it until it’s sold. So it can either sit in a warehouse or the distiller can take it back, it’s their choice. In cases where it isn’t on consignment, warehousing it rather than selling what you’re already paid for at least ensures that the distiller is impacted by the entire duration of the tariff, as people can’t still buy their product for a while while it lasts and then the seller just immediately resupplies when the tariff is over. Storing it means when the tariff is over there’s still a supply to sell before they purchase more from the distiller. This would be the situation for bars and such, but it’s a big liability sitting on their books, so I imagine most will probably sell their remaining stock, which I can understand.