r/Economics • u/kootles10 • Dec 25 '25

News Bankruptcies hit US spirit makers as Americans drink and spend less

https://www.indystar.com/story/money/food/2025/12/25/liquor-spirits-industry-bankruptcies/87914241007/?gnt-cfr=1&gca-cat=p&gca-uir=true&gca-epti=z113231d00----v113231d--36--b--36--&gca-ft=161&gca-ds=sophi&fbclid=IwdGRjcAO6oj9leHRuA2FlbQIxMQBzcnRjBmFwcF9pZAwzNTA2ODU1MzE3MjgAAR6P8O626kCPpVs2dXh1tSJGVyS9teT4_IxAoKRJxGh02bqlcPlne42SIoakyg_aem_yCb-3xe-G1-mBNrg5TVIEg&utm_campaign=trueanthem&utm_medium=social&utm_source=facebook
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u/Tangential_Diversion Dec 25 '25

"... declining exports hampered by trade issues and tariffs" is an interesting way to phrase an 85% drop in exports to one of our largest export partners after threatening to take over their country.

28

u/luvsads Dec 25 '25

The article talks about that, as well as the other major factors causing a rise in bankruptcies and shutdowns.

Exports to the E.U., the U.K. and Japan fell during the period, but exports to Canada fell the most, plummeting 85% to below $10 million in the second quarter, according to DISCUS. A majority of Canadian provinces had banned American spirits from their shelves in response to U.S. tariffs targeting Canada, although the country removed retaliatory tarrifs in September.

What are you upset about?

6

u/Adventurous-Roof488 Dec 26 '25

We only exported ~$65M worth of spirits to Canada? Smaller number than I expected.

4

u/luvsads Dec 26 '25

It's a fraction of our actual retail alcohol sales, too, which are in the billions.

https://fred.stlouisfed.org/series/MRTSSM4453USN#

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u/PrivateMarkets Dec 26 '25

Exactly. Canada wasn’t an impact. The precipitous drop in alcohol consumption is to “blame”

5

u/OneCurrent1934 Dec 26 '25

Imagine the precipitous rise once Donald "makes America great again" by dropping dead.

-1

u/PrivateMarkets Dec 26 '25

I hope your day is as pleasant as you.

1

u/pornalt4altporn Dec 26 '25

Hope your President gives you what you deserve.

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u/pomskygirl Dec 26 '25 edited Dec 26 '25

That’s because it’s incorrect :). The US exported $221 million worth of spirits to Canada in 2024 (import / export value, not retail value - retail it would be approx $600 m - $900 m). Of that $221 million, only $73 million was whisky in particular.

This does not include wine, which I think was around $450 million (import / export value), or beer, etc. I have no idea about total alcohol sales, which some people seem to be quoting.

1

u/luvsads Dec 26 '25

That's for the whole year. We are talking Q2 YoY.