Saskatchewan’s Shift to Supporting Canadian Alcohol Amid Trade Tensions

Saskatchewan is making a pivot in its liquor market as the provincial government responds to trade tensions with the US. Following US President Donald Trump’s decision to impose tariffs of 10% to 25% on Canadian goods, Saskatchewan announced it would stop purchasing American alcohol and other US goods. This decision has led to a wave of last-minute purchases of American beverages, such as bourbon, as customers stockpile their favorite brands before they disappear from shelves.

Mixed Reactions: Customers and Retailers Weigh In

While some customers are racing to grab their favorite American liquors, others are embracing the shift toward Canadian products. According to Branelle Zenuk, owner of the Melfort Liquor Loft, there’s a sense of urgency among a few customers determined to secure specific US products before they’re gone. “I don’t want to call it panic buying, but I’ve had a couple of customers where they’re really hell-bent on a certain product from the U.S.,” Zenuk said. Her store, like others, will continue selling its remaining US inventory, as it was purchased and paid for before the tariffs were announced. Meanwhile, Robin Baerg of Fox Liquor Cellars in Saskatoon noted that most customers are actively seeking Canadian alternatives, signaling a broader shift in consumer preferences.

Restaurants Re-Think Menus and Prioritize Local Products

The ripple effects of the trade dispute are also being felt in Saskatchewan’s dining scene, as restaurants are re-evaluating their drink menus and supply chains. Anna Gardikiotis, owner of the Copper Kettle in Regina, has decided to remove an American wine from her menu and use up the US alcohol she already has on hand. “We try to support local where possible,” she said. This shift reflects a growing trend among Saskatchewan businesses to prioritize Canadian products, a decision that aligns both with customer preferences and the province’s new stance on US imports. For Gardikiotis, the move is part of a larger effort to adapt to changing trade dynamics and support local producers.

Interprovincial Trade Barriers Come Under Scrutiny

The situation has also highlighted the challenges posed by interprovincial trade barriers within Canada, which can limit access to local products. Gardikiotis expressed frustration about the difficulty of sourcing wines and other products from provinces outside Saskatchewan. “There’s lots of times where we’ve researched different wines and products, and then it’s like, oh, we can’t get that here,” she said. In response, Canada’s premiers and the federal government have agreed to reduce these barriers, with most provinces committing to improve alcohol trade between jurisdictions. Saskatchewan, for its part, is reviewing its remaining trade exceptions and encouraging other provinces to do the same.

Businesses Adapt to Changing Trade and Consumer Trends

Hospitality Saskatchewan CEO Jim Bence noted that liquor vendors in the province have not complained about the government’s decision to stop buying US alcohol, suggesting that many in the industry saw this coming and are supportive of the move. “Amongst colleagues, we’re all making very conscious choices about what we’re purchasing, and it’s very much around buying Canadian,” Bence said. He added that restaurants are prepared to adapt to higher costs if tariffs persist, while also tailoring their offerings to meet customer preferences. This adaptability reflects the resilience of Saskatchewan’s business community in navigating uncertain trade conditions and shifting consumer demand.

A Future of Supporting Local and Reducing Trade Barriers

As Saskatchewan’s alcohol retailers and restaurants pivot toward Canadian products, there is optimism about the long-term benefits of this shift. By prioritizing local and provincial suppliers, businesses are not only supporting the domestic economy but also fostering greater self-reliance in the face of international trade disputes. With the provincial government reviewing interprovincial trade barriers and encouraging other provinces to do the same, there is hope for a more integrated and competitive Canadian market. While the short-term impact of the tariffs may be challenging, Saskatchewan’s decision to focus on Canadian alcohol could pave the way for a brighter, more resilient future for its industries and consumers alike.