Liquor importers say Alberta’s prohibition on U.S. booze is leaving them high and dry. Read More
Liquor importers say Alberta’s prohibition on U.S. booze is leaving them high and dry. Trace Hanlon says nearly $90,000 worth of American whiskey he’s purchased from U.S. suppliers is languishing in an Alberta Gaming, Liquor Cannabis warehouse in St. Albert, racking up storage fees. In Alberta’s liquor marketing model, importers — or agents — supply
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Liquor importers say Alberta’s prohibition on U.S. booze is leaving them high and dry.
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Trace Hanlon says nearly $90,000 worth of American whiskey he’s purchased from U.S. suppliers is languishing in an Alberta Gaming, Liquor Cannabis warehouse in St. Albert, racking up storage fees.
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In Alberta’s liquor marketing model, importers — or agents — supply the AGLC with product and are paid on a consignment basis once the booze is purchased by retailers.
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But that’s now on hold with the ban on the importation of American liquor, said Hanlon.
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“They’ve frozen our product — retailers can’t access it and I’m paying weekly fees for that . . . we’re caught in the crossfire here,” he said, adding he’s in full agreement with the move to ban U.S. liquor.
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“We’re in for a penny, we’re in for a pound, but we need some direction from government.”
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Unlike other provinces, which have government-operated retail structures, Alberta’s model has been privatized since 1993 and merchants aren’t being forced to pull U.S. liquor from their shelves, and can sell it until the stock runs out.
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An agent of 20 years, the specialty of Hanlon’s Evergreen Beverage Canada Inc. is higher-end U.S. bourbon and other whiskies from 30 American suppliers.
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The products, he said, are popular in Alberta.
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Hanlon said he cut back on his U.S. purchases weeks ago when it became clear a trade war was imminent, adding his U.S. suppliers weren’t happy.
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Even so, many understood what was happening and why, and who’s to blame, he said.
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“In red states, a lot of suppliers weren’t happy with how (U.S. President Donald) Trump is handling tariffs, and that Trump was misleading people on them,” said Hanlon.
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He said he’s also hoping for some understanding from the AGLC and Alberta government on how the ban is affecting him and other agents.
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“We’re trying to send a message (to the U.S.), but the operating cash flow is kind of hurting,” he said.
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In a letter sent to agents Thursday, the AGLC said it won’t be accepting U.S. product from them.
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“Liquor agencies will no longer be allowed to enter advanced shipping notices with (AGLC warehousing) for U.S. liquor products, and existing ASNs with U.S. liquor products will not be accepted by the warehouse,” it read.
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Hanlon said he’s asked the AGLC to suspend storage fees and the government offer a temporary interest-free loan to allow “local companies some much needed operating funds to give us a fighting chance to pivot our business.”