Jacob's Creek Maker Eyes Growth In Canada, Latin America As Trump Tariffs Tarnish US Alcohol Appeal

Wine giant Vinarchy, formed after the recent merger of Accolade and Pernod Ricard's Australian and New Zealand operations, is setting its sights on Canada and Latin America to promote Australian wines, as shifting U.S. trade policies unsettle global industry sales.

In an interview with the Financial Times, executive chair Ben Clarke said the company's brands, such as Jacob's Creek, are gaining traction in Canada, after a ban on U.S. wines in reaction to President Donald Trump's policies.

Clarke also said its Spanish wine brands would appeal to Latin American customers.

The rise of the new challenger and changes to the trade landscape are already weighing on American alcohol producers.

In early March, Canada removed all U.S. wine from its liquor stores and restaurants, effectively banning its sale in the country. 

This action was a retaliatory response to the U.S. tariffs imposed on Canadian goods, particularly aluminum and steel. 

The ban includes wine, beer, and spirits, making them the only U.S. products completely barred from the Canadian market.

In recent months, shares of key U.S. alcohol companies have suffered.

Molson Coors Beverage Co. (TAP), Sam Adams brewer Boston Beer Co. (SAM), and Constellation Brands (STZ) shares are down 4.7% to 19.1% year to date.

U.S.-listed shares of Belgium's Anheuser-Busch InBev (BUD) are up 35%, as the company offsets pressures with its strong performance of light and non-alcoholic beverages.

Adelaide-based Vinarchy, formed just last month, is owned by a Bain-led consortium and has annual revenues of $1.5 billion and 1,600 employees. It has 11 wineries in Australia, New Zealand, South Africa, and Spain, and 

The FT report also noted that Australian wine accounted for 16% of volumes in Canada, similar to the U.S. and South Africa, while exports to China rose 41% in March.

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