Saint John brewery Moosehead is losing hundreds of thousands of dollars every month. New United States tariffs hit the company hard, and an upcoming ban on Canadian alcohol threatens to make the situation worse.

According to a report from CTV News, the 50 percent tariffs implemented on August 22 mean the company makes no money on shipments crossing the border. However, Moosehead continues to send beer south to protect valuable shelf space.

The Cost of Keeping Shelf Space

American sales account for 15 percent of Moosehead volumes. Company president and CEO Andrew Oland told CTV News the situation is complex and the team is taking it day to day.

Oland noted that losing access to the United States market for an extended period creates a massive challenge. Regaining lost sales takes years. If you buy local beer, your support helps, but buying Canadian does not offset the massive financial hit from lost American revenue.

The brewery is also preparing for a complete ban on many Canadian alcohols scheduled to take effect on September 29.

Cross Border Relationships

Despite the trade dispute, Oland expressed confidence in the federal government. “I have faith in Prime Minister Carney that he and his team are acting in the best interests of Canadians and Canadian businesses,” Oland said.

The impact extends beyond New Brunswick. Patrick Woodcock is the president and CEO of the Maine State Chamber of Commerce. He warned that retaining these tariffs for weeks will cause significant ramifications for the trading relationship.

Woodcock also emphasized the durable history between New Brunswick and Maine. “This is a chapter, but we also have many chapters that just reinforce that we have a durable relationship,” Woodcock said.

Frequently Asked Questions

Why is Moosehead Breweries losing money?

The United States government implemented a 50 percent tariff on Canadian goods on August 22. This eliminates any profit Moosehead makes on American sales.

When does the United States alcohol ban start?

The ban on many Canadian alcohols goes into effect on September 29.

Why does Moosehead still ship beer to the United States?

The company continues to ship beer at a loss to maintain established shelf space in American stores. Regaining lost retail space takes years.

How much of Moosehead sales come from the United States?

American buyers account for 15 percent of the total volume sold by the brewery.