Modernizing Excise Duties: A Strategic and Urgent Opportunity to Strengthen Canadian Craft Distilleries

OTTAWA, ON, April 28, 2026 /CNW/ – As Canada faces increasing economic uncertainty and prepares for critical trade discussions with the United States, the Canadian craft distilling industry is calling on Prime Minister Mark Carney to take decisive and timely action to strengthen domestic businesses by finally extending to Canadian craft distilleries some of the same reduced excise policies that they already provide to Canadian wine, beer and cider.

Canadian distillers are currently operating under a significant structural disadvantage. Excise duties on spirits in Canada are up to 14 times higher than those in the United States, creating a major barrier to growth, investment, and innovation for Canadian producers. In practical terms, this imbalance places Canadian businesses and consumers at a severe competitive disadvantage even before trade negotiations begin.

At a time when Canada must prioritize the resilience and competitiveness of its domestic industries, failing to act would mean continuing to concede market share, investment, and long-term growth potential to international competitors like the United States.

The path forward is clear, practical, and already proven.

The Canadian Craft Distillers Alliance (CCDA), with the backing of every provincial association it represents, is proposing a targeted modernization of the excise framework through a progressive, volume-based model, an approach successfully implemented in the United States in 2017, which generated billions in economic activity.

Importantly, this is not an untested or foreign concept. Canada has already embraced a similar approach in the beer industry. A progressive excise structure has enabled microbreweries across the country to grow, invest, and thrive, while continuing to contribute to public revenues.

The question is no longer whether this model works, it is why it has not yet been extended to distilleries.

“This is a practical, proven solution that Canada already understands and applies successfully in other sectors,” said Tyler Dyck, President of the Canadian Craft Distillers Alliance (CCDA). “At a time when economic pressures are mounting, we have an opportunity, right now, to strengthen Canadian businesses, support regional economies, and ensure our producers are competing on a level playing field. This is not about creating an advantage; it’s about restoring fairness.”

Beyond correcting a competitive imbalance, this reform represents a powerful economic lever. A targeted reduction in excise duties would unlock significant domestic investment, support job creation in rural and regional communities, and generate substantial economic returns across the country.

Canada has the foundation to reclaim its place as a global leader in spirits. Once recognized as a world capital of whisky production, the country still possesses the expertise, raw materials, and entrepreneurial strength required to reassert itself on the international stage.

But realizing that potential requires action.

“Canada has everything it needs to lead again in this space,” added Dyck. “What we need now is a modern framework that allows our industry to grow into that potential. With the right policy in place, we can build globally competitive brands, drive exports, and create long-term economic value right here at home.”

With a majority mandate now in place, the government has a clear opportunity, and no remaining justification for delay, to move forward.

About

The Canadian Craft Distillers Alliance is the collective voice of Canada’s Craft Distilling sector, representing almost 400 distilleries from coast to coast to champion the modernization of liquor industry policy that pertains to the production of Craft Spirits in Canada.

SOURCE Canadian Craft Distillers Alliance