Alcohol Sales Hit Record Decline

Canada’s love for a drink may be fading—at least for now. Statistics Canada reports that alcohol sales dropped for the fourth straight year in 2024-25, marking the largest annual decline since tracking began in 2004.

From April 1, 2024, to March 31, 2025, Canadians bought 2,898 million litres of alcohol—a 3% drop from the previous year. The total value of alcoholic beverages sold fell 1.6% to $25.8 billion, despite prices inching up by the same percentage.

Beer Still Tops, But Sales Slide

Beer remained the most popular drink, accounting for roughly a third of all alcohol sales. Yet, beer sales by volume sank 3.8% to 1,876 million litres, marking the ninth straight year of decline. Dollar-wise, beer revenue dropped 1.6% to $9.1 billion.

Canadian breweries are still adjusting to U.S. tariffs on aluminum and steel, which disrupted beer can production. Consumers’ growing “Buy Canadian” mindset also played a role, shifting preferences toward domestic brews.

Wine Takes a Hit, Especially Imports

Imported wine sales fell sharply for the first time ever, dropping 3.9%. Overall wine revenue slid 2.2% to $7.7 billion. Domestic wine sales, however, showed modest growth, climbing 1.9% to $2.3 billion.

Ontario and Quebec experienced the steepest declines in imported wine purchases, at 5.3% and 4.3%, respectively. In total, wine volume dropped to 460 million litres for the fourth year in a row.

Spirits Also Down, With Regional Shifts

Spirits sales fell 3.2% to $6.7 billion, with whisky, vodka, and liqueurs leading the pack. By volume, sales slid 4.4% to 177 million litres. Interestingly, spirits still dominate in certain regions: 44.1% of sales in the Northwest Territories and 30.8% in British Columbia.

Ciders and Coolers Buck the Trend

The only bright spot? Ciders and coolers. Sales climbed 4.8% to $2.4 billion, with nine provinces and two territories seeing growth. However, British Columbia and Yukon saw small declines in this category. Overall, 385 million litres of ciders and coolers were sold, up 2.2% from the previous year.

Cannabis Sales Climb as Alcohol Declines

While booze loses ground, cannabis is thriving. Recreational cannabis sales grew 11.5% to $2.5 billion in 2024-25. Total cannabis revenue across retail outlets rose 6.1%, reaching $5.5 billion.

Yukon led per-capita sales at $384 per person, while Quebec lagged at $105, reflecting tighter restrictions on vaping, edibles, and topicals during the year.

Canada’s drinking habits are clearly shifting. Alcohol sales are falling across almost every category, while cannabis continues its upward climb, showing a changing landscape in the country’s leisure choices.

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Alcohol Exclusion From Trade Deal Frustrates Producers

Industry Reaction

A new agreement signed Wednesday by Canadian provinces, territories, and the federal government has ignited frustration across the country’s beverage-alcohol sector. While the deal aims to ease interprovincial trade restrictions for select goods, alcohol was omitted — a move that industry leaders say undermines years of advocacy.

Adin Wener, managing partner at Toronto-based Henderson Brewing Company, said the industry had expected long-promised progress. He noted that many brewers facing U.S. tariffs were counting on expanded domestic markets. “We should be one country, especially in the face of tariffs,” he said.

Lingering Barriers

Producers say the continued exclusion of alcohol reinforces challenges that complicate business operations. Those include differing provincial packaging requirements, shipping rules, and pricing structures, all of which can add months to distribution timelines.

Canada’s alcohol sector is already grappling with inflation, declining consumption among younger demographics, and rising costs for materials like aluminum. For breweries and wineries, interprovincial hurdles remain one of the few obstacles that government policy could remedy, yet progress remains slow.

Years of Delays

In July, nine provinces and one territory signed a memorandum of understanding to simplify direct-to-consumer alcohol sales by May 2026. But industry experts say that without firm commitments, timelines mean little.

Jeff Guignard, CEO of WineBC, said the sector has waited too long. “We haven’t been talking about this for weeks. We’ve been talking about this for years,” he said. He also pointed to added costs facing B.C. wineries shipping into Alberta after a new ad valorem tax took effect this spring.

Provincial Motives

Economists say the provinces’ reluctance to liberalize alcohol trade stems from financial incentives. With major provincial retailers — including Ontario’s LCBO and Quebec’s SAQ — generating substantial revenue, governments remain cautious about introducing competition from out-of-province producers.

Concordia University economist Moshe Lander said the decision reflects a long pattern of carveouts that have built today’s maze of trade barriers. Removing alcohol, he argued, threatens both revenue and local industries tied to tourism and regional branding.

Outlook

Industry leaders maintain that direct-to-consumer progress is possible, though they say political coordination is essential. Economists, however, warn that without unified commitment from all 14 jurisdictions, meaningful reform is unlikely.

“It could happen,” Lander said. “But the political will has to be there among 14 people at the same time.”

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Quebec Faces Potential Loss of U.S. Alcohol Stock

Quebec’s state-run liquor board may be forced to destroy $300,000 worth of American alcohol after the provincial government banned U.S. products in stores. The move comes in response to tariffs imposed by former President Donald Trump.

Products at Risk

Affected items include rosé and boxed wines, ready-to-drink cocktails, and select beers and liqueurs. These products, officials note, are not suitable for long-term storage, raising concerns over potential spoilage.

Government Orders and Storage Challenges

The Quebec government issued its directive on March 4, requiring the liquor board to remove U.S. alcohol from shelves. Since then, the stock has been held in storage. Laurianne Tardif, a spokesperson for the board, said, “Several factors…will have a direct impact on the potential costs” as the future of these products remains undecided.

Financial Scope

The $300,000 at risk represents a fraction of the $27 million worth of U.S. alcohol currently in storage. Liquor board CEO Jacques Farcy previously stated that the products retained value and were not perishable, suggesting the possibility of resale if regulations change.

Provincial Context

Quebec is not alone in restricting U.S. alcohol. In March, Ontario and Alberta also instructed liquor authorities to halt U.S. purchases, while British Columbia banned liquor from certain U.S. “red states.” Unlike Quebec, Alberta and Saskatchewan have since reversed their restrictions.

Next Steps

Ultimately, the decision on whether these products can be sold or must be destroyed rests with the Quebec government. Liquor board officials continue to monitor expiration dates and regulatory guidance, with potential financial implications still unfolding.

For continuous coverage and real-time updates, keep following Maple News Wire.

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Local Producers Applaud New Tax Relief

Ontario’s craft alcohol producers are celebrating a major win as the provincial government implemented sweeping tax cuts on August 1, reducing levies on locally made beer, spirits, and ready-to-drink (RTD) beverages by up to 50%. The Ford government says the move supports a “modernized and competitive alcohol marketplace” and will help local businesses stay afloat after years of economic pressure.

Impact Across the Province

The tax changes apply specifically to small Ontario-based producers. For spirits, the basic tax has been halved to 30.75%, while Ontario microbreweries will now pay just 17.98 cents per litre for draft beer and 19.88 cents for non-draft. The LCBO markup for cider drops to 32%, and wine or spirit-based RTDs under 7.1% alcohol content will see reduced markup rates of 48%.

Craft beverage producers say these cuts are a long-overdue step in levelling the playing field. Steve Himel, co-founder of Henderson Brewing Company in Toronto, described the changes as a “huge difference” for his operation. “This tax cut is so well-timed. It really helps us to be competitive again,” Himel said.

Mixed News for Consumers

Despite the industry cheer, Ontarians may not see a noticeable drop in shelf prices. Producers say the tax savings will primarily help stabilize operations and support long-term growth, rather than deliver immediate discounts. Himel noted that while some savings might be passed along, much of the relief will be reinvested into business operations.

At Reid’s Distillery in Toronto, owner Graham Reid explained that taxes previously consumed nearly $38 of a $50 bottle of gin. The new structure boosts margins, but he doesn’t anticipate immediate price drops on spirits. “It was more affordable to import your product than to produce it here. That shouldn’t be the way it is,” Reid said.

Boosting Local Growth

Industry leaders are calling the tax reform a “game changer.” Scott Simmons, president of Ontario Craft Brewers, said the cuts pave the way for job creation and community investment. “The changes put breweries on a path to grow, create jobs, and get more local beer on store shelves — I think that’s something we can all cheers,” Simmons said in a statement.

Graham Reid added that the reduced taxes will help offset rising costs from aluminum tariffs on canned beverages. Shehan De Silva, founder of Craft 360 Beverages, echoed that sentiment, calling the move “hugely beneficial” for small brewers. “After a lot of tough news over the pandemic, this is definitely welcome,” De Silva said.

Why It Matters Now

The tax cuts arrive after years of challenges for Ontario’s alcohol industry, especially during and after the COVID-19 pandemic. Rising costs, limited margins, and global competition had put many local producers under strain. This financial relief aims to keep the sector alive — and thriving.

While immediate savings for consumers may be minimal, the long-term benefits for local jobs, economic stability, and product availability are expected to be significant. For Ontario’s small alcohol producers, the message is clear: relief is here, and with it, renewed hope.

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Interprovincial Alcohol Sales Agreement Reached

Canadians will soon be able to purchase alcohol directly from producers in other provinces, thanks to a new agreement reached by nine provinces and one territory. Announced Tuesday after federal, provincial, and territorial ministers met in Quebec City, the initiative is set to take effect by May 2026. The agreement excludes only Newfoundland and Labrador, as well as the Yukon, at this time.

Consumer Access to Expand by Spring 2026

The policy shift aims to modernize alcohol sales and reduce long-standing trade barriers. Once implemented, consumers will be allowed to order wine, beer, and spirits directly from producers across provincial lines for personal use. The move is expected to benefit small and mid-sized alcohol producers seeking broader national exposure and to give consumers greater access to regional specialty products.

Implementation Details Still Pending

While the target date is May 2026, several key elements — including taxation, shipping logistics, and provincial oversight — must still be finalized. “We hope that Quebecers and Canadians will be able to benefit from this as soon as possible,” said Quebec’s Junior Economy Minister Christopher Skeete. “But you understand that this has never been done before, and so we want to make sure that we get it right.”

Part of a Broader Push for Economic Integration

This alcohol agreement is just one part of a broader movement to eliminate interprovincial trade barriers. Ministers also signed a memorandum of understanding to improve labour mobility and standardize trucking regulations. These efforts reflect a growing push to create a more seamless Canadian internal market.

Federal Support for Free Trade Within Canada

Deputy Prime Minister Chrystia Freeland emphasized that the recent efforts are part of a historic shift. “This meeting is part of a series of conversations, actions, and legislation… which has created a more united Canadian economy than at any time since Confederation,” she said. Last month, Ottawa passed legislation recognizing provincial certifications at the federal level and eliminating additional trade restrictions under the Canadian Free Trade Agreement.

Collaborative Infrastructure Efforts Continue

Beyond alcohol and labour mobility, provinces are also working together on infrastructure. On Monday, Ontario and Alberta signed an agreement to develop shared energy and transportation corridors, including a potential rail line to Ontario’s Ring of Fire mineral region. These developments highlight a growing momentum among provinces to collaborate economically and reduce internal barriers.

Outlook: A More Connected National Market

As provinces finalize the alcohol sales agreement and work through logistics, Canadians can expect a more connected, consumer-friendly marketplace by 2026. For producers and consumers alike, the changes signal a shift toward a more integrated and open Canadian economy — one bottle at a time.

For continuous coverage and real-time updates, keep following Maple News Wire.

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