Alberta liquor association and stores to remove U.S. product

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Alberta liquor stores are scrambling to adjust to a new government-mandated ban on U.S.-made liquor imports, a move that has left retailers and customers weighing options.

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The Alberta Gaming, Liquor and Cannabis Commission (AGLC) said it will suspend the import and sale of U.S. liquor into the province starting Thursday at 12 p.m., following a directive from the provincial government.

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The ban applies to all liquor products originating from the United States, as declared to the Canada Border Services Agency (CBSA). As a result, AGLC’s central warehouse, Connect Logistics Services (CLS), will no longer accept shipments of U.S. liquor, and existing stock will be marked as “out of stock” for licensees.

Retailers may continue selling their remaining inventory of U.S. liquor but will not be able to reorder. AGLC will not accept returns from retailers.

The U.S. liquor imports ban follows Canada’s decision to impose a 25 per cent surtax on U.S. liquor shipped after last Tuesday under the United States Surtax Order (2025-1). AGLC said in a statement that it’s exploring options for liquor agencies with affected products and will provide updates as available.

Multinational brands

The decision, however, raises questions about multinational brands like Molson Coors and Budweiser, which are headquartered in the U.S. but have production facilities in Canada. Damen Singh, store manager at the Co-op Liquor Outlet, said they will continue to sell these products.

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“It is very complicated,” Singh said. “The (Molson brand) tell me they are Canadian, but their head office is in the U.S., and they are like 50/50, but they still have a production link here in Canada. So, we are still supporting a Canadian production product. There is no problem selling those items here.”

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Shift in consumer preferences

Singh said that around 40 per cent of his store’s wine inventory comes from the U.S. and that the talk about tariffs imposed by U.S. President Donald Trump was already shifting customer preferences even before the ban came into effect.

“People really like (U.S. wine), but now more people are not buying them (as much). They are supporting Canadian wine, Canadian products, local products more,” he said.

While some discounted U.S. products are still selling, such as the Barefoot Wine being on sale for $6.99, which was already scheduled  as a special for their flyers three weeks ago, moving forward the store isn’t putting any more U.S. products on their upcoming promotions, Singh said.

He also noted typically, U.S. wines are “pretty expensive” compared to the Canadian ones. Beyond the impact of the liquor ban, the broader economic concerns are also affecting consumer habits.

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“The economy is getting slow. People want something to drink, for sure, but they want to spend less,” he said, suggesting people who were spending around $50 on alcohol a few years ago are only spending around half of that now.

Adjusting to the new normal

Singh said the immediate impact of the ban was felt in how retailers deal with U.S. products, as AGLC has already removed all U.S. products from their website, meaning the Co-op Liquor Outlet will continue selling remaining products on the shelves until they’re sold out.

Adam Koziak, store manager at Chateau Louis Liquor Store, said they are also keeping American products on the shelves until they sell out.

“Whatever is on the shelves is already paid for by me, so I will be selling it until I’m out of stock on it,” he said.

Canadian alternatives

Customers are already looking for alternatives, Koziak said, noting some are asking specifically for Canadian products as an alternative to the U.S. products they used to purchase, while others just ask for other options.

Alberta Distillers is among the popular choices for consumers looking for Canadian alternatives or locally produced spirits, he said, noting Bridgeland Distillers, along with some smaller distilleries in Alberta, offers a product similar to bourbon.

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“A lot of people are willing to try that,” he said.

Koziak said he’s looking into more Canadian alternatives but remains open to products from around the world.

“I mean, it’s a global market where we bring products from all over the world,. Whatever the customers want is what I’ll end up bringing in,” he said.

On the broader impact of the ban, however, Koziak noted unintended consequences that the people most affected are not decision-makers in government but everyday workers, both in the U.S. and in Canada, who should not be responsible for the political tensions that led to the trade restrictions.

“This is a political battle between two governments right now. The people that grow the raw products are just farmers, and the people distilling it are just chemists. They’re not politicians. They unfortunately are in the middle of a battle between governments and they don’t have any say in anything,” he said.

Opportunity for Canadian products

“I’ve got my Canadian sections already pretty well labelled in the store. People do see where all the Canadian whiskys are, where all the Canadian wine is. I guess I might have to do a better job of showing off which ones are the gems from Canada, and that might be something in the works in the next little while,” he said.

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The sudden ban requires liquor stores across the province to pivot, but retailers still have plenty of options for consumers, said Ivonne Martinez, president of the Alberta Liquor Store Association (ALSA). 

“We didn’t find out that we can’t order from the U.S. until about 10 o’clock last night, so this is a new development, and our stores are having to pivot and see what’s available for them and how they’re going to deal with the ban of U.S. products,” she said. “However, we do have access to 36,000 products, so consumers will have lots of options to buy from when they can make (a visit) to the liquor stores in Alberta.”

Many stores are already seeing increased demand for Canadian alternatives, she added, but explained that due to the privatized nature of Alberta’s liquor stores, it’s unclear how widespread this shift is as each store is handling the situation. However, it’s noticeable that many retailers are making an effort to promote Canadian brands.

cnguyen@postmedia.com

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