Sales of U.S. wine in Alberta taking a big hit amid trade war

Though it is still available in Alberta, consumers have put a cork in much of the U.S. wine sales in the province, say liquor retailers.

While Alberta is one of the Canadian outliers in banning American liquor products, consumers are expressing their resentment of U.S. trade war actions and threats against Canadian sovereignty with their wallets, said Ivonne Martinez, president of the Alberta Liquor Store Association.

And that’s affected the sale of U.S. wines particularly hard, she said.

“Sales of U.S. wines are not great . . . some of (the retailers) are not bothering to order those wines,” said Martinez.

“There’s so many options in terms of other products comparable or better to what comes from the States.”

She said sales of American products such as bourbon that are harder to replicate by Canadian distillers haven’t been as affected by the trade dispute.

Even so, Alberta consumers have increasingly turned to Canadian whiskies, of which there are 46 Alberta varieties registered as authentic whiskies, said Martinez.

“It’s very good for Alberta,” she said.

Much of the reason for that buyer shift is a backlash against American trade policy and anti-Canada rhetoric coming from the Trump administration, said Martinez.

“The majority do so because of what’s been going on in the States,” she said.

In March 2025, Premier Danielle Smith said the government directed Alberta Gaming, Liquor and Cannabis to halt its purchases of U.S. liquor products. They were worth $292 million and yielded $84 million in markup revenue for the province in 2024.

There was also a pause on orders of VLT machines from the U.S.

But that liquor prohibition was lifted three months later, with the decision holding ever since, even as a 50 per cent import tax on American booze went into effect in Saskatchewan on Sept. 8.

All other provinces and territories ban or restrict U.S. liquor products.

The amount of U.S. inventory in Alberta liquor stores varies, but it’s generally accounted for 15 to 25 per cent of their stock in normal times, said Martinez.

Andrew Ferguson, owner of Kensington Wine Market, said purchases of U.S. wines at his store were already falling, but since the trade war started they have plunged another 50 per cent.

“Wine has definitely taken a bigger hit and bourbon is down, but it’s held up better than wine,” he said.

“Some (Alberta) craft distillers can make something like it but it’s not quite the same.”

Ferguson said his orders of American products have definitely been reduced, but some he hasn’t phased out due to a lingering demand.

Alberta’s decision to allow U.S. liquor has also made it a source of American booze for individuals in other provinces with a thirst for it, say retailers.

“People will come into our stores, buy our bourbon and ship it to Ontario, direct to the consumer,” said Martinez.

Some retailers say the same out-of-province purchasing is happening with U.S. wines.

Ferguson said the practice is fairly widespread but added his store hasn’t gone along with it.

“I want to be able to do our part for Canada — it’s the least we can do,” he said.

Though it’s likely an unpopular stance within his industry, Ferguson said he’s in favour of Alberta reinstating a ban on U.S. liquor or imposing an import tax, as long as retailers are given several months’ warning and opportunity to clear their American inventory.

“I feel we’re not doing our part and (shipping U.S. liquor to other provinces) is a bit of a back door,” said Ferguson.

Martinez said restricting American alcohol hurts Alberta retailers who have already purchased U.S. products.

A longtime B.C. wine producer said she’s in favour of provincial bans on U.S. alcohol, given the threats coming from the U.S.

“I think it’s perfectly justified and would encourage it — we’ve never seen rhetoric like this coming from any other country,” said Christine Coletta, co-founder of Okanagan Crush Pad Winery at Summerland, B.C.

She said her business has seen a “small benefit” from Albertans turning up their noses at U.S. wines, adding some Canadian consumers still prefer certain kinds of product more identified with American producers.

“Lots of different countries’ wines have benefitted (from the trade war),” said Coletta, who’s been in the wine industry for four decades.

In B.C. government-operated liquor stores, the province’s wines have seen a 157 per cent increase in sales in the past year, driven by resentment over the Canada-U.S. trade war and threats to Canadian sovereignty, said Coletta.

“The mass boycott of American wines has really shifted the product mix like I’ve never seen before,” she said.

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