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With U.S. tariffs, North Vancouver craft distillery owner encourages people to buy local

Supporting local distilleries and other businesses can help recirculate revenue back into the B.C. economy, president of the Woods Spirit Co says

When shopping the last few weeks, you may have noticed signs saying “Buy Canadian Instead” or ones pointing to what items are made locally.

The “Buy Canadian” movement has quickly swept through grocery and liquor stores after U.S. President Donald Trump threatened to impose 25 per cent tariffs on Canadian and Mexican products earlier this year.

U.S. liquor, produce and materials like steel and aluminum are just some of the items affected by the 25 per cent tariff hike. Premier David Eby announced on March 10 that all U.S. alcohol would be removed from BC Liquor Store shelves, after earlier in February yanking liquor from Republican states.

With the rapid changes in tariff rules, people in the craft alcohol industry are also adapting. President of North Vancouver craft distillery the Woods Spirit Co. Celia Chiang says supporting local businesses has always been important, but now is vital.

“If individuals have the capacity to shift a portion of their spending to buying local, it would make all the difference,” Chiang said.

The Woods Spirit Co is a female-led craft distillery specializing in Italian-inspired liqueurs.

Chiang took on the leadership role in 2024 after being a florist in the Tri-Cities area for two decades. But with that experience under her belt, it helps her to make decisions quickly and pivot when needed.

The distillery has already seen changes since the tariffs, Chiang said, including increases to fruits like lemons, blood oranges and botanicals coming from the U.S.

The price of lemons, for instance, has soared in recent weeks, Chiang said. The increase could be due to seasonality, but her supplier told her the 25 per cent tariffs are in effect now.

“I’m seeing those impacts directly affect us now, and it’s challenging because we’re already trying to be as cost effective and operationally efficient as possible,” she said.

The citrus fruits are needed for their Limoncello and Arancello liquors, some of their most popular products. B.C. doesn’t grow them, resulting in purchasing them from the U.S.

While BC Liquor Stores have pulled U.S. liquor off their shelves, another challenge on top of tariffs, Chiang said, is selling craft distillery products due to the high markups through the government-owned company.

Chiang said BC Liquor stores have a markup of 124 per cent on wholesale items, whereas private-owned stores could be up to 30 per cent. As an example, she said a bottle of Arancello could be $40 before the markup, then close to $90 after.

“That is completely not sustainable, and no one would buy the product,” Chiang said.

It would make more sense if they could make markup more in line with breweries and wineries, she added, noting that breweries and wineries have a 20 to 30 per cent markup, which is a lot more feasible.

Despite the challenges, revenue from local businesses can help recirculate back into the economy, she said.

A 2019 study from local business advocate organization LOCO BC found that independent businesses recirculate up to 4.6 times more revenue than non-local counterparts, keeping up to 63 per cent of revenue in B.C., compared to 14 per cent with multinationals.

B.C. also carries the second highest number of small businesses with 170,127, trailing only Ontario with 407,428, according to 2024 Statistics Canada data.

The North Shore craft scene has grown over the last few years, with North Vancouver being home to five distilleries and more than 10 breweries.

Moving forward, Chiang sees a positive message about people coming together as a country during an unknown time. The Woods Spirit Co is soon planning on putting Canadian stickers on their boxes, so consumers know they are supporting local.

“It’s important that we let customers know that supporting local businesses is a choice, and that it’s helping our local economy – it’s helping our tax base, it’s helping jobs and helping other small businesses,” Chiang said.

“Even from the awareness perspective, it’s educating the public about choosing and buying Canadian-made products. If they go to a restaurant, ask for a local item that’s made in the province.”

Abby Luciano is the Indigenous and civic affairs reporter for the North Shore News. This reporting beat is made possible by the Local Journalism Initiative.

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