With tariff threat postponed, Moosehead wants to loosen sales barriers between provinces
'In many cases it's easier to sell north-south than east-west,' says brewery CEO
A New Brunswick brewer that's been selling beer for almost 160 years is calling for a reduction in trade barriers between provinces in the wake of Trump threatened tariffs.
Andrew Oland, CEO of Moosehead Breweries, who spoke with CBC on Tuesday before the tariffs were postponed, said he'd like to see federal and provincial governments work harder to reduce interprovincial trade barriers.
"There are still many which exist across multiple industries in Canada," Oland said.
"And in many cases it's easier to sell north-south than east-west."
In a previous statement, before the tarriffs were put on hold, the province said it would review internal trade barriers "to strengthen the Canadian economy in collaboration with federal, provincial and territorial governments."
New Brunswick has some of the most stringent rules on importing alcohol, with the Canadian Federation of Independent Business ranking the province dead last, in a 2024 report, on personal importation limits.
"Alcohol importation rules serve as a high visibility indicator of provinces/territories working together to reduce irritants," the report said.
"This year's report finds that there has been no progress in addressing alcoholic beverages trade barriers since its previous edition."
Labyrinth of regulations
Oland said there are multiple examples of trade barriers between provinces, citing Newfoundland and Labrador, Ontario and Quebec as examples.
"In Newfoundland, 80 per cent of the beer is sold in convenience stores, and you can only be stocked in the convenience store in Newfoundland if you're brewed on the island. So we're not available the 80 per cent of the market."
In Quebec, Oland mentioned paying inspection fees, and in Ontario, "we have to own a brewery in Ontario to be able to be considered a local brewer for distribution purposes ... So those are the three biggest issues we would face across Canada from an interprovincial trade barrier perspective."
Tariff threat remains
While the threat of tariffs has been postponed, it hasn't been eliminated.
Trump's executive order reads that tariffs will be imposed on March 4 if "the illegal migration and illicit drug crises worsen, and if the Government of Canada fails to take sufficient steps to alleviate these crises."
Moosehead exports about 20 per cent of its beer to the United States. Oland said a 25 per cent tariff is a big number and he's not sure how it will all play out.
"Do we absorb some or all of it? And you know, if we do, what's the impact on our margins and if we don't, don't, you know, what's the impact on our wholesaler partners across the United States and ultimately on the price ... consumers have to pay."
It's also not clear if the province's move to sell less alcohol from the U.S. will benefit to brewers. While the tariffs are on hold, Premier Susan Holt said N.B. Liquor will not buy anymore U.S. stock.
"For now, American products will remain on ANBL shelves but we will not be purchasing new product," Holt said in a statement.
She also said it's important to use the 30-day pause to be aggressive about removing internal trade barriers and getting all premiers at the table together.
Oland said there isn't a lot of U.S.-made beer on Canadian shelves.
Many U.S. brands, such as Budweiser, are actually made in Canada for the domestic market by brewers like Labatt.
But Oland is concerned about Canadian beer being removed by U.S. retailers in retaliation.
"We're very, very concerned we may be denied access to the U.S. market," he said, after liquor boards across the country announced they would remove U.S. products, before Trump put the move on hold.
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With files from Jacques Poitras
