Moosehead Breweries Calls for Looser Interprovincial Trade Barriers

Moosehead Breweries, a significant player in New Brunswick’s brewing industry, is advocating for reduced trade barriers between provinces in Canada. The call for change comes after the postponement of threatened tariffs by the Trump administration, which had created uncertainty in the beer market.

'Selling beer from province to province is challenging'

The brewery, which has been operational for nearly 160 years, aims to increase its beer sales across Canada. However, according to Andrew Oland, the CEO of Moosehead Breweries, existing trade restrictions make this ambition difficult to achieve. He pointed out that in many situations, it is easier for Canadian businesses to conduct trade with the United States than with other provinces in Canada. Oland stated, "There are still many which exist across multiple industries in Canada," highlighting the ongoing issues in interprovincial trade.

Reviewing Trade Barriers

Prior to the tariff postponement, New Brunswick’s provincial government had announced plans to review internal trade barriers. The aim is to foster economic growth by collaborating with federal, provincial, and territorial governments to enhance trade in Canada.

New Brunswick has been noted for its strict rules on importing alcohol. A recent report indicated that the province ranked last on personal importation limits regarding alcohol. The report highlighted that "Alcohol importation rules serve as a high visibility indicator of provinces/territories working together to reduce irritants," indicating a need for progress in this area.

Understanding Provincial Rules

Oland elaborated on the varying trade barriers faced by breweries across other provinces such as Newfoundland and Labrador, Ontario, and Quebec. For example, he mentioned that in Newfoundland, 80% of beer is sold in convenience stores, but only locally brewed products are allowed on those shelves, severely limiting market access for Moosehead's products. In Ontario, the brewery must own a facility in the province to qualify as a local brewer for distribution.

Uncertainty with Tariffs

Although the threat posed by tariffs has been temporarily averted, it is still looming. The executive order signed by Trump indicates that tariffs could be enforced if certain conditions are not met by the Canadian government by March 4. Moosehead currently exports about 20% of its beer to the U.S., and Oland expressed concerns about the implications of a potential 25% tariff on their products, questioning how it could affect their pricing and partnerships with wholesalers.

While the tariffs are on hold, Premier Susan Holt has stated that the New Brunswick Liquor Corporation will avoid purchasing additional products from the U.S., urging a focus on supporting local producers. Oland highlighted the risk that Canadian beers could be displaced by U.S. products in retaliation to these trade restrictions.

Moving Forward

Oland remains hopeful that the current pause in tariffs provides an opportunity for provinces to unite and work on eradicating trade barriers. He expressed the importance of collaboration among all provinces to facilitate easier access for Canadian beers to all markets within the country.

trade, barriers, brewery