Overview: The National Alcohol Beverage Control Association released its latest annual sales data for 18 markets covering the month of July, revealing a significant downturn for Canadian whisky in US control states. While Scotch and Tequila posted growth, Canadian whisky recorded the largest decrease across all spirits categories in both volume and value.
The Full Story
Sales of Canadian whisky in US control states saw the biggest drop of all spirits categories in July as Scotch and Tequila grew. The new data showed a 8.5% volume drop for Canadian whisky during July and a value decrease of 8.4%. It was the largest decrease of all spirits categories for that month in both volume and value. For the 12 months to July 2026, Canadian whisky sales in control states were down by 7.4% in volume and by 7.9% in value.
US drinkers in control states are drinking more Scotch and Tequila than Canadian whisky. Meanwhile, New Hampshire sales (up 21.5% in volume in July) were supported by ‘strong promotional activity’, with the state’s ‘Summertime Bonus Card Bonanza’ boosting Scotch and Tequila. Performance was impacted by four fewer selling days in Michigan, and a change in Utah where package agency stores changed from a traditional purchase model to a transfer-based model.
Canada and the US are currently embroiled in a trade war, which recently escalated with a 50% US tariff placed on Canadian products. Since March 2025, American alcohol has been pulled from all but two Canadian provinces in response to US president Donald Trump’s initial tariffs. Canada operates a government-run model for alcohol sales.
What This Means
The ‘cocktails’ segment, led by canned ready-to-drink (RTD) products, continued to post double-digit growth. This category rose by 19.5% in volume and by 18.5% in value. Other categories to post volume growth were cachaça (up 10.9% from a small base), cordials (liqueurs), which increased by 1.1%, and Irish whiskey (up 0.4%). Value-wise, cachaça rose by 11.8%, while cordials increased by 1.6%. After Canadian whisky, the biggest volume and value drop came from Cognac/brandy, down by 6.4% in both areas. It was followed by volume decreases for gin (down 5.2%), rum (down 4.5%) and American whiskey (down 3.6%).
Consumer Takeaway
In the on-premise over the past year, volumes of spirits increased by 0.5% but decreased by 1.7% in value across control states. The on-premise channel delivered a 0.2% rise in volume for July, while value fell by 2.5%. For the 12 months to July 2026, spirits sales across all control states dipped by 0.6% in volume and by 2.6% in value. In June, American whiskey and vodka returned to growth in US control states.
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